How Fast Food Chains Are Embracing AI: Overcoming Early Challenges to Transform the Industry | PYMNTS.com

The fast food world is buzzing with new technology. McDonald’s, Yum! Brands, and Wendy’s are leading the charge in using artificial intelligence (AI) and automation. They’re focused on making operations smoother, boosting profits, and making dining experiences better for everyone.

Recently, McDonald’s CEO Chris Kempczinski highlighted AI as a major trend for 2025. He believes that technology can vastly improve customer experiences and support staff as well.

A survey from TD Bank shows that 42% of restaurant industry leaders expect AI and automation to play a huge role in shaping their business in the coming years. This follows closely behind the need for lower interest rates, which captured 46% of attention.

At McDonald’s, they’re enhancing their tech setup across 43,000 locations. This includes connecting kitchen equipment to the internet, implementing AI-powered drive-through systems, and providing AI tools for managers. With these changes, franchise owners can monitor their operations in real-time, thanks to sensors that feed data to an on-site processing system.

McDonald’s is also exploring computer vision technology to double-check orders before they’re given to customers. Additionally, they’re considering a virtual AI manager that could help with scheduling and other administrative tasks.

After some past challenges, McDonald’s is giving AI voice-ordering another shot, this time teaming up with Google Cloud. Previously, a trial with IBM resulted in some unusual orders, like bacon ice cream, which ended their partnership.

Wendy’s has faced similar struggles with its own AI ordering system, which drew complaints from customers. Many reported issues with understanding the AI. However, Wendy’s CEO Kirk Tanner has noted improvements in the system’s accuracy over time.

On the other hand, Yum! Brands, which oversees KFC, Taco Bell, and Pizza Hut, recently launched an AI platform called ‘Byte by Yum!’ This system is designed to streamline restaurant operations, enhance order accuracy, and boost customer satisfaction. Already, it’s helping Taco Bell and Pizza Hut improve their services, while it’s being used in 25,000 locations worldwide.

In the coming years, Wendy’s plans to expand its FreshAI drive-thru program from 100 to between 500 and 600 locations. This technology has already proven to increase sales by suggesting additional food items to customers.

As fast food restaurants adopt more AI, they’re aiming to improve not just operational efficiency but also the overall dining experience. Technology can help with inventory tracking, labor management, and even food safety.

Anup Prasad from Cognizant, a global IT services firm, mentions that these advancements are crucial for helping restaurants deal with labor shortages and improve demand forecasting.

Investor Sam Jones believes the potential for AI in this industry is vast. He sees opportunities to cut costs and enhance customer experiences. In the future, fast food kiosks and apps may anticipate customers’ needs, suggesting meals based on past orders and real-time data.

We’re still in the early stages of this technology wave, with many restaurants figuring out how best to harness AI for better operations.