From drive-thru to back-of-house operations to predictive ordering for consumers, restaurant brands are beginning to test artificial intelligence to optimize food service.
The technology has yet to reach critical mass in major chains, but it has the potential to automate more tasks and give restaurant workers the opportunity to have a more meaningful customer experience.
Analysts say a key benefit is the potential to ease workforce challenges in an ongoing tight hiring market. The National Restaurant Association predicts the industry will add 500,000 jobs by the end of 2023, but notes that there is currently only one job applicant for every two open positions.
Additionally, TD Cowen estimates that voice-enabled AI can boost sales by up to 15% through up-selling and speed up service times by 10 seconds.
The industry shift is reminiscent of the rise of third-party delivery services five years ago, before they were ubiquitous at nearly every major restaurant operator, according to Andrew Charles, managing director of consumer and restaurant at TD Cowen.
“Some were testing it, some of us are contemplating it, most were testing it,” he said of third-party apps for delivery services. “I think there’s a clear analogy to today where it’s very similar, and as we continue to see more adoption of this, you’re going to see a ripple effect here.”
But there are still obstacles to widespread adoption, according to Charles. Many of these large restaurant chains need franchisees to participate. Language barriers and menu nuances can add complexity to the ordering process that AI can’t navigate.
Meanwhile, the wave of pilot programs has already started.
Last month, Carl’s Jr. and Hardee’s parent company, CKE, announced it was aiming to launch AI integrations across the country through partnerships. with Presto and Open City AI.
Hmm! brands in recent years has been a leader in leveraging AI to improve operations, including the acquisition of Dragontail in 2021 with the goal of optimizing food preparation and delivery. Automating the flow of the kitchen, driver dispatch and customer order tracking, the technology is used at 1,000 Pizza Hut locations in the US and nearly 3,000 more worldwide. The company also relies on AI for its recommended ordering module that tells managers how many products to order on a weekly basis.
mcdonald’s, for its part, sold McD Tech Labs to IBM in 2021, entering into a strategic partnership to help bring AI technology to self-service lanes. McD Tech Labs, which was previously known as Apprente before it was acquired by McDonald’s, used AI to understand self-service orders. So far, McDonald’s has tested the technology in certain locations.
Del Taco is also using voice-activated AI for drive-through ordering, as is wing stop for orders placed by phone.
Panera Bread has also invested in technology both in front-of-house and back-of-house operations. It is working with OpenCity AI on drive-thru voice orders and with Miso Robotics to guarantee the quality of the coffee and temperature control to increase the consistency of the product.
For Panera, it’s about “How do we redeploy our people toward higher value, higher quality guest experiences?” said chief digital officer George Hanson. “Whether they spend more time on food preparation and quality control, or interacting in person,” Hanson told CNBC in an interview.
“It could be just walking into the dining room and asking them how their food is or if they can clear their table, just having those warm interactions. We see that as a higher value.”
Chipotle is testing an autonomous kitchen assistant, Chippy, which offers a robotic solution for making French fries in restaurants.
Courtesy: Chipotle
chipotlea technology leader in the restaurant space, has also partnered with Miso Robotics, introducing Chippy, your robotic chip maker, who is currently settling in and cooking French fries at a restaurant in Fountain Valley, California. Using AI, Chippy has been trained to recreate the exact recipe for the brand’s chips with salt and fresh lemon juice. The next iteration of Chippy will also determine the number of chips that need to be made.
The company has also implemented AI in its app to implement suggestive ordering and uses camera systems in its Cultivate Center test kitchen to provide real-time data on the amount of product needed based on customer volume to be more predictive and less reactive. .
Chief Customer and Technology Officer Curt Garner told CNBC the hope is that AI and robotics amplify and enhance human experiences at the company’s restaurants.
“(It’s) helping the crew members, the managers, the team to adapt to their current environment as a tool, but not taking them out of the equation of serving our guests and running the ship,” he said.