Restaurants are increasingly looking to artificial intelligence to lower labor costs, particularly in drive-thru operations. According to a survey by the National Restaurant Association, 16% of restaurant operators plan to invest in AI technologies such as voice recognition this year, with significant investments coming from large chains that have the capital and scale to implement such technologies effectively.
The push towards AI has been driven by rising labor costs, which were exacerbated by the COVID-19 pandemic. The shift towards drive-thru services during the pandemic and recent wage hikes for fast-food workers have further incentivized restaurants to adopt technology to maintain profit margins.
Despite the enthusiasm for AI, challenges remain. McDonald’s, once a pioneer in drive-thru AI through its partnership with IBM, recently ended its trial of Automated Order Taker technology, citing issues with interpreting different accents and dialects. Other companies like Presto Automation have faced scrutiny for using human agents to assist AI, although this approach is common for training purposes.
Industry analysts predict a tipping point for voice-ordering AI in 12 to 18 months, with expectations that at least two major restaurant chains will expand their AI trials. SoundHound, a leader in this space, claims its AI can handle over 90% of orders without human intervention and improve drive-thru speed by 10%. AI’s ability to upsell and cater to non-English speakers presents additional opportunities for restaurants.
However, drawbacks include potential reputation risks from inaccurate orders, technology imperfections, and varying customer preferences. Older customers may prefer less technology, while younger customers might appreciate increased efficiency. Restaurants with weak Wi-Fi, noisy locations, or complex menus may find AI implementation challenging.
Despite setbacks, McDonald’s and other chains like Taco Bell and White Castle continue to explore voice-ordering solutions. Early adopters are often lower-volume chains with higher financial incentives to reduce labor costs through AI.
Panera Bread founder Ron Shaich believes that the true winners will be those who follow once the technology is refined, emphasizing that while AI can enhance operations, it should not overshadow the overall customer experience. The focus should remain on delivering a superior dining experience rather than merely adopting the latest technology.
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