Wendy’s latest venture into the world of artificial intelligence (AI) is aimed at improving their overall efficiency of operations, especially in their customer-facing, drive-thru services. No question, the fast-food chain is committed to using AI to deliver a more personalized experience. It intends to plug itself into increasing inflation by using a dynamic pricing system. Meanwhile, Taco Bell is experimenting with AI technology but has encountered challenges, raising questions about the effectiveness of automated systems in the fast-food industry.
Wendy’s recently rolled out AI technology at its drive-thrus to enhance order accuracy and speed of service. The integration of dynamic pricing powered by AI allows Wendy’s to adjust menu prices based on market conditions, particularly inflationary pressures. This tactical decision is all part of their plan to keep prices competitive while still maximizing profits. Wendy’s CIO is convinced that these tech innovations will help the chain better compete. They’ll make sure Wendy’s truly distinguishes itself from all the other mediocre or slightly more successful fast-food joints.
Taco Bell’s journey with AI has been fraught with failures. And yes, the company recently announced their AI drive-thru assistant. It went unbelievably viral after one customer came in and ordered 18,000 cups of water! The AI system processed the order without question, proving that it would unflinchingly follow customer orders. That real world scenario was what prompted a human staff member to come to the rescue. They cancelled the outsize order, exposing incomparable shortcomings in the AI’s sense-of-judgement IQ.
Challenges Faced by Taco Bell’s AI System
Even Taco Bell’s Chief Information Officer, their Chief Digital Director Matthews, said they can’t yet rely on AI technology to dictate what they should do operationally. Perhaps most poignantly, he acknowledged that the AI has sometimes let the company down. These deficiencies have led to operational challenges that could negatively influence the customer experience. Though it sounds dire, Matthews was quick to point out when AI exceeded all expectations. In the right contexts, it has been a godsend.
The unanticipated outcomes provided by Taco Bell’s latest AI technology have prompted a reconsideration of its future place in the chain. Matthews stressed that the efficiency AI can bring is tremendous. He added that it’s critical to balance the benefits of automation with strong human oversight. The 18,000 cups of water incident should teach us something essential. While technology can increase efficiency, it will never replace the need for human intuition and judgment.
Broader Implications for the Fast-Food Industry
Make no mistake, fast-food chains have already been using AI for years. From delivery robots to automated fryers, many businesses have adopted new types of automation to enhance their operations. Many chains have failed to capture growth with these strategies. Unfortunately, Taco Bell serves as an example of a chain that has struggled to implement AI into their operations appropriately. Wendy’s is doing this transition, a mighty healthy fast-casual chain, with a lot more swagger. They invest in practical AI applications that make their service offerings better.
The adoption of AI technology across all fast-food chains will produce a spectrum of results, for better or worse. For those chains that achieve success through strong execution, there are others that struggle and find themselves in need of a strategic reset. The experiences of Wendy’s and Taco Bell provide valuable insights into the potential benefits and obstacles associated with adopting AI in fast food.
