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Will AI enhance or disrupt the fast food industry?
While brands have been called out for a lack of diversity in their marketing, it can be a difficult issue to quantify. Longtime marketer and former Google marketing strategist Asha Shivaji started the SeeMe Index to come up with that data, with some help from AI. I talked to Shivaji, the cofounder and CEO, about how SeeMe Index works and its findings. But he also pointed out that at many restaurants, employees are currently being asked to do too much. “Let’s take a few hats off of people and let them do what they do really, really well,” he said.
And I think it was dollar burritos, and it broke the restaurant because of the demand. They’ve got to be thoughtful about what they do with these challenges, because you can pass on the cost to some extent to guests, but it’s not easy to manage that. I’ll share a bit on the evolution of the company and maybe that’ll give you some perspective on that question. The reason platforms like Toast took off is a lot of this technology, believe it or not, in 2012 and 2013 was actually in servers in the restaurant. Just moving to the cloud made it operationally simpler, made it more cost efficient. One of the things we’ve done is our CRM platform, you can give it a few signals or cues so it can create thoughtful campaigns and AB test them and get feedback.
McDonald’s told CBS MoneyWatch that it is ending its Automated Order Taker pilot, which used AI in drive-thrus to expedite orders. The fast-food giant, which launched the tech through a partnership with IBM in 2021, isn’t ready for now to deploy voice ordering across its restaurants. Some customers reported that McDonald’s chatbot sometimes got even simple orders wrong. Several fast-food chains, including Checkers & Rally’s Restaurants Inc., CKE Restaurants Holdings Inc.’s Hardee’s and Carl’s Jr., and Wendy’s Co., are testing or have implemented similar technology in their drive-thrus.
It’s too early to understand how customers will react to dynamic pricing at restaurants but, at a minimum, AI can make those pricing decisions easier. Whether it’s on mobile or web, AI chatbots can help answer operators’ questions based on existing articles and content, so they can spend more time with their staff and guests, and less time searching for a solution. Tools for helping operators thrive The restaurant industry’s “AI moment” has arrived, and it can help operators who embrace it deliver exceptional dining experiences on-premise and at home. As AI advances, its role in the sector can help improve operations and the ways we think about technology’s role within a restaurant. AI is not merely a trend but a transformative force that can redefine the dining experience.
In 2024, we are sure to see QSRs of all sizes implement the technology in their own ways. To date, one of AI’s most significant contributions to the restaurant industry is its ability to streamline operations and enhance efficiency. From automated drive-thru ordering systems to predictive inventory management, AI-driven solutions optimize a restaurant’s workflow, reducing wait times and increasing productivity. AI in food service should be capable of emulating human responses with empathy and context-awareness.
An IBM spokesperson told the publication that it is negotiating with other fast food companies about implementing its AI-powered technology. “As we move forward, our work with IBM has given us the confidence that a voice-ordering solution for drive-thru will be part of our restaurants’ future,” McDonald’s said. The acquisition of Apprente was done with the goal of eventually deploying the AI-powered technology at the restaurants’ drive-thru locations in order to improve speed and efficiency of order-taking. If you want to replace your bathtub, the chatbot will ask questions like what type of bathtub you want and which features you’re interested in, then suggest a couple of nearby bathtub installers.
In addition to drive-thru orders, some companies have started to explore how generative AI could be used to develop digital chatbots on their apps or utilize image-recognition to determine wait times. The fast food giant said it had decided to retire the AI-powered voice-ordering system, launched in partnership with IBM in 2021, after a “thoughtful review”. Sign up to receive texts from Restaurant Business on news and insights that matter to your brand. The tone was set early by keynote speaker Mike Walsh, a futurist who specializes in preparing businesses for the next big thing. He argued that we’re in the midst of a another industrial revolution—one powered by artificial intelligence rather than steam or electricity.
Optimizing food ordering can not only save costs but can help your restaurant contribute to sustainability efforts as well. 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. Speaking of Google, McDonald’s forged a partnership with the tech giant at the end of 2023 to connect the latest cloud technology and apply generative AI solutions across its global system. Currently, digital sales generate more than 40% of sales across the chain’s top six markets. With the help of consumer data, using AI at a time of increasing economic pressures on both diners and businesses QSRs can easily and cost-effectively improve customer experiences.
McDonald’s ends AI drive-thru trial as fast-food industry tests automation.
Posted: Tue, 18 Jun 2024 07:00:00 GMT [source]
“We’re incredibly proud to unveil this revolutionary product,” says Jonathan Azzopardi Frantz, CEO of Tableo. 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. Still, McDonald’s comments on the future of voice-activated AI suggest that the company saw enough in its prospects to move forward, albeit with another vendor. “IBM has given us confidence that a voice ordering solution for drive-thru will be part of our restaurant’s future, and we want to sincerely thank IBM and the restaurant teams that have been part of this crucial test,” Smoot said in his message. At Bojangles, restaurant employees came up with the on-brand moniker Bo-Linda for its drive-thru voice bot.
The recruiting system aims to decrease the time to hire, reduce job advertising costs, increase hiring for hard-to-fill roles, and improve candidate experience. As such, more restaurants are turning to AI and robotics to streamline back-of-house operations, as well as reduce labor costs. Restaurateurs are often dealing with the here and now, because they’re just running their business today. Meanwhile, Zomato’s rival Swiggy partnered with Spyne.ai to provide AI-backed photoshoot features to its restaurant partners. The IPO-bound company was also piloting an AI chatbot named ‘neural search’ that offers personalised recommendations for a user’s open-ended and conversational queries. Effective from Monday (September 16), non-compliant restaurants will be delisted from the platform, Zomato’s food ordering and delivery division CEO Rakesh Ranjan told Financial Express.
“A lot of that gets automated in the future, where you don’t have to interface directly with the technology,” he told the WSJ. McDonald’s has taken a deliberative approach on drive-thru AI even as many other restaurant chains have jumped fully on board. Checkers and Rally’s, Hardee’s, Carl’s Jr., Krystal, Wendy’s, Dunkin and Taco Johns are either testing or have implemented the technology in its drive-thrus.
And will stop accepting AI generated dish images (as much as we can detect them using automation),” he said on X (formerly Twitter). The development comes almost a month after Zomato founder and CEO Deepinder Goyal urged restaurant partners to avoid using AI to generate dish images in restaurant menus. When done right, consistent and nuanced upselling is an advantage of AI over human workers. The overall goal is to avoid robotic, repetitive upselling approaches and instead offer a more personalised and effective strategy.
We were reminded again about the impact of the pandemic on restaurants’ push into technology. But we were also reminded that companies that focused on technology before then were at a real advantage when it hit. There was a time not long ago when some restaurants seemed ready to ditch third-party delivery and use their own drivers. The belief was that going that route would give the restaurant more control over the experience as well as better data. Austin-based Tso Chinese Takeout and Delivery once had a large fleet of cars but got rid of them, in part due to high insurance costs, said founder Angell Tsang. Major QSR brands have been testing drive-thru AI in recent years, with Wendy’s allowing franchisees to test the tech this year, though the results have been ambiguous.
Marketing AI assistants can help create campaigns, but managers need to provide input and final approval. AI streamlines operations, freeing staff to focus on delivering great hospitality. AI can even automatically order what’s needed based on historical data about food or beverage use. Fifty-two percent of companies found that implementing AI decreased their supply chain management costs—and for 41%, a decrease of over 10%.
Lotteria was at the show using the Alpha Grill to make its signature bulgogi burgers. A rep for the burger chain told Food on Demand that it plans to enter the US next year. Major fast food chains nationwide are launching AI deployments across select locations to help automate customer service and reduce the reliance on human labor. Chains like Popeyes, Panera Bread, Taco Bell, and more are testing CAI and GAI at the drive-thru to help automate and streamline ordering. However, the successful scaling of these initiatives hinges on their effectiveness. There have been instances of fast food chains introducing automated drive-thru order-taking that unintentionally frustrated customers due to inaccuracies and repetitive use of upselling.
“These LLMs allow us to identify and categorize themes in reviews even when they aren’t explicitly mentioned in the review text. For example, a review that says, ‘drinks came out quickly’ would be categorized under ‘service,’ even though the word ‘service’ isn’t used,” he told TechCrunch over email. Most available trip planners don’t take logistics into account, but a couple of tests seem to show that Meta AI is getting better at that.
Some studies have found that it can lead to biased assessment of candidates and unintentionally discriminate against people based on their race or gender. In addition to collecting biographical information, Ava can engage with job applicants and answer their questions about the company, according to Chipotle. Chipotle Mexican Grill job applicants better get used to conversing with AI — their first interview could be with an artificial intellgence-powered system named “Ava Cado” rather than a human hiring manager. Let Restaurant Dive’s free newsletter keep you informed, straight from your inbox. McDonald’s gave no public reason for ending its test run, according to Restaurant Business, telling franchises that it would shut down the technology on 26 July.
Other fast food chains have also deployed AI technology to help streamline its customer service experience. However the company is said to have plans to expand on its use of this emerging technology, having been testing voice AI in its drive-through restaurants, like many other US-based fast-food chains. The reasoning behind the end of the AI drive-thru as it currently exists is unclear, and while it could be because it just didn’t work very well, the concept isn’t dead just yet. “The goal of the test was to determine if an automated voice ordering solution could simplify operations for crew and create a faster, improved experience for our fans,” the fast food corporation said.
Securities products and services are offered through Citizens JMP Securities, LLC, Member FINRA, SIPC. According to Sambvani, it is not uncommon for in-demand restaurants to receive anywhere between 800 and 1,000 calls a month. Tableo, a visionary Maltese tech company, is thrilled to announce the Beta launch of its AI Assistant for Restaurants. In January, Cailyn Sykora posted a TikTok showing the AI-powered drive thru adding more than 20 orders of a McNuggets Meal worth some $222. The AI search platform Perplexity added Yelp’s content to its search results through the Yelp Fusion API. The updated Yelp Fusion API is now available to Yelp partners, while non-partners can trial the service for 30 days.
Multiple AI-driven robotics companies have received national interest and investor funding to build robots that can make a variety of food, such as pizza, french fries and hamburgers, to name a few. Chipotle Mexican Grill is testing a robotic tortilla chip-making machine named “Chippy” in the hopes of delivering a consistent, perfectly cooked, well-seasoned chip. In the food business, the customer experience carries great significance. This is especially true for drive-thru and off-premise dining, where the customer’s objective is to get in and out quickly, with exactly what they ordered.
AI-driven menus or suggestions from their server can direct diners toward popular and well-liked items they will most likely enjoy and toward higher-margin items, streamlining the experience and saving servers time. This can lead to quicker service, enhance the overall dining experience, and foster a connection between the diner and the restaurant, encouraging repeat visits and increasing average order value. Cart recommendations for “always on” upselling Rather than picking up phones, diners largely order pick-up or delivery digitally, making AI-powered cart recommendations is crucial for time-strapped restaurant operators and consumers alike. By leveraging predictive analytics, AI can analyze past purchases and trending items to suggest additional dishes or drinks.
The company is also revamping inboxes for businesses with redesigned job cards and AI-powered summaries highlighting job information. Food On Demand Outstanding Operators features restaurant brands with innovative operations that are taking creative paths to success with delivery and all things off-premises. Bite Ninja, backed by Y Combinator, launched its virtual drive-thru cashiers in 2021. These cashiers are remote workers who take orders in a Zoom-like conference call setting. CEO Will Clem said the company paused for over a year to upgrade the software.
McNamara said the lockers can be retrofitted into an existing restaurant, but are mainly geared for the growing number of digital stores popping up all over the US. A potential option could involve the company’s vague announcement of a Google deal in December. Bloomberg reported that the deal was partly for a chatbot named “Ask Pickles” that employees could use for guidance on things like cleaning ice cream machines. Even so, Google partnered with Wendy’s, which started testing drive-thru AI based on its tech last year and has since expanded that trial. Targeted marketing programs supported by AI technology, primarily delivered through digital channels such as mobile apps and email, have also been shown to drive sales.
