Can Fast-Food Drive-Thru AI Become Mainstream?

McDonald’s is ending its AI-driven drive-thru ordering experiment with IBM by late July 2024. Despite the end of this partnership, McDonald’s believes AI voice ordering has potential for the future and will continue exploring new solutions for customers who prefer this style of service, according to Restaurant Business.

Mason Smoot, McDonald’s USA chief restaurant officer, acknowledged some successes but emphasized the need for broader exploration of AI solutions. While reasons for ending the IBM deal are unclear, McDonald’s remains open to future AI solutions for drive-thru orders, suggesting the potential for new partnerships to enhance restaurant technology.

One potential reason for the end of the partnership could be the accuracy of AI orders. Customers reported a variety of errors at McDonald’s drive-thrus, including receiving an ice cream cone topped with bacon and being charged for nine sweet teas instead of a single hash brown, sweet tea, and Coke. Another instance involved a customer being billed $222 for multiple McNugget meals due to AI miscommunication.

These incidents were widely shared on social media, particularly TikTok, highlighting the system’s flaws and contributing to the negative feedback. One TikToker posted a video with a text overlay that says “fighting with McDonald’s robot.”

The AI-driven order-taking system, although facing termination at McDonald’s, has found traction among other fast-food chains. Companies such as White Castle, Checkers, Rally’s, Hardee’s, Carl’s Jr., Krystal, Wendy’s, Dunkin’, and Taco John’s have either tested or fully implemented similar technologies. Domino’s employs AI for voice recognition in order-taking and optimizing delivery routes, while Starbucks uses AI to personalize customer recommendations via its app. In China, KFC has adopted AI facial recognition technology to predict customer orders, showcasing the diverse applications of AI in the fast-food industry.

Furthermore, many fast-food chains are exploring artificial intelligence to boost sales and efficiency, particularly in drive-thru operations. Presto Automation provides AI voice recognition technology to several major chains, including Checkers, Rally’s, Del Taco, Carl’s Jr., and Hardee’s, as well as digital ordering tablets to casual dining restaurants. However, Presto is facing financial challenges, including a $6 million debt repayment, and has lost some key clients.

Del Taco initially praised Presto’s AI for drive-thru orders, stating that it was “exceeding expectations,” but has since decided to discontinue its use. Presto’s AI voice recognition, though advanced, still requires human intervention for order input and accuracy, managing only 30% of orders independently.

Moreover, Presto Automation faces scrutiny as filings reveal that over 70% of orders are completed by off-site human workers, notably in the Philippines. This practice contrasts with the company’s AI branding and raises concerns about transparency in AI-driven solutions across industries. Despite claims of automation, the reliance on human contractors raises questions about the true impact on labor in the restaurant industry’s adoption of AI technologies.

Meanwhile, White Castle believes its AI voice-recognition technology surpasses human accuracy. White Castle has implemented SoundHound’s AI voice system in 15 of its restaurants for drive-thru orders, aiming to enhance accuracy and efficiency while reducing staff pressure and customer rush. The technology, which White Castle plans to expand to over 100 locations by year-end, allows customers to place orders via an AI named Julia. Despite concerns about AI reliability and its impact on jobs, White Castle reports that the system has not reduced staff hours but rather allows employees to focus on food preparation and customer service.

In December, Bloomberg reported that McDonald’s was in discussions regarding a potential deal with Google, involving a chatbot named “Ask Pickles” that employees could use for various tasks. McDonald’s has also continued to integrate automation across its operations in other ways, including mobile ordering, in-store kiosks, drone deliveries, kitchen robotics, and AI-driven hiring tools.