Wendy’s Is Using AI To Keep Up With the Frosty Demand

Wendy’s has announced that the demand for the popular Frosty dessert is so great that it is turning to the possibility of using AI to keep up with the demand.

Bloomberg reports that the fast-food giant is enlisting the aid of Palantir Technologies to fulfill its demand. In order to ensure that Wendy’s supply chain group is prepared to service customers in the event that a $1 Frosty offer attracts large crowds of people, data analytics firm Palantir uses artificial intelligence to identify shortages before they occur.

After years of high inflation, the restaurant business is struggling with rising labor and ingredient prices. AI is starting to make inroads in this sector. This has forced an industry that already operates on thin margins to examine cost control even more closely.

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Wendy’s supply chain co-op, a separate organization that makes purchases for the business’s eateries, is placing a wager that Palantir’s system will accomplish this for the burger chain’s 6,000 U.S. locations. Stores typically keep additional merchandise on hand in case something comes up, but inflation has made that more costly.

“Three or four years from now, if you’re not doing this, you’ll be at a distinct disadvantage,” said Pete Suerken, who leads the co-op, in a statement to the outlet. “This is something that, as an industry, will change the way we work.”

According to Arjun Mathur, a senior vice president of the company, Palantir’s platform incorporates inputs like shipping costs and historical and current sales data. Since the pandemic affected logistics, the company has observed an increase in demand for its supply-chain services. Palantir’s other clients include Tyson Foods Inc. and General Mills Inc., as reported by Bloomberg.

Wendy’s can use the software to determine which products will expire and when. Based on factors like price and the possibility that the things will arrive on schedule, it can then recommend alternatives like ordering from a particular warehouse.

Wendy’s Is Getting Its Flavor Selection On

The popularity of Wendy’s Frosty has led the popular fast-food chain to reportedly consider a new “controversial” flavor: salted caramel.

Wendy’s will reportedly introduce a Salted Caramel Frosty this month. The new flavor will take the place of the Pineapple Under the Sea Frosty, which was first served during the restaurant’s 25th-anniversary collaboration with SpongeBob SquarePants.

Snackolator, a well-known Instagram blogger who was among the first to cover the Under the Sea Frosty, was the source of the information.