How Much of an Impact Will AI Have on Fast Food?

Taco Bell is set to roll out AI speech technology at hundreds of its drive-thru locations across the U.S. by the end of the year, as announced by its parent company, Yum! Brands. This new technology will allow customers to place orders with a machine instead of a live employee, a shift aimed at improving order accuracy and reducing wait times.

Yum! Brands’ chief innovation officer, Lawrence Kim, expressed confidence in the AI system, which has already been implemented at 100 Taco Bell drive-thrus in 13 states. Kim told CNN that the technology has led to increased ordering accuracy, improved staff satisfaction, and shorter wait times. He emphasized that the AI is designed to support, not replace, employees, allowing them to focus on other priorities.

Kim also hinted at potential future applications of AI across other Yum! Brands restaurants, such as Pizza Hut, KFC, and The Habit Burger Grill, as the technology continues to evolve and improve.

"Our vision of [quick-service restaurants] is that an AI-first mentality works every step of the way. If you think about the major journeys within a restaurant that can be AI-powered, we believe it’s endless."

Joe Park, Yum! Brands' chief digital and technology manager, via the Wall Street Journal

The Wall Street Journal explained in April how California's new minimum wage law has many restaurant operators turning to AI to manage costs and boost sales. Yum! Brands' SuperApp, which allows "restaurant managers to track and manage operations," is testing generative AI to assist with tasks such as setting oven temperatures, purchasing ingredients, and managing employee shifts. Additionally, the app, used in over 8,700 Pizza Hut and KFC locations so far, plans to introduce augmented reality features to train staff on new menu items.

According to Foodindustry.com, Chipotle is leveraging AI and automation to handle "repetitive, time-consuming tasks more efficiently." The company implemented a robot designed to make tortilla chips named Chippy as well as an AI-powered cooking system that guides staff on what to prepare and when. These innovations have cut down on food waste and boosted kitchen productivity.

In June, McDonald’s ended its AI-driven drive-thru ordering experiment with IBM, despite recognizing AI’s potential for the future. Although the exact reasons for terminating the partnership were unclear, reports of order inaccuracies and negative feedback on social media influenced this decision. Customers reported issues such as incorrect charges and poorly fulfilled orders, which highlighted the system’s flaws.

Other fast-food chains have continued to explore AI technologies, with companies like White Castle and Domino’s already integrating AI into their operations. White Castle, for instance, implemented AI voice recognition technology to improve drive-thru accuracy, while Domino’s used AI to optimize delivery routes. Meanwhile, Presto Automation, a provider of AI solutions, has faced financial and operational challenges, raising questions about the extent of automation and its impact on labor in the industry.

But AI will be used for more than just voice ordering. According to Forbes, fast-food restaurants will increase the use of automation and robotics, with a focus on using it for cooking and packaging food in the future. This approach aims to enhance efficiency, ensure consistent food preparation, and minimize human error. Additionally, fast-food chains recognize the potential of AI to meet the "growing customer demand for healthier options." Per the outlet, "With growing health consciousness, AI could be used to create personalized, healthier meal options for customers based on their dietary preferences and restrictions."