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From taking orders to cutting avocados, AI is solving the labor shortage problem for fast-food chains

Nancy Luna   

From taking orders to cutting avocados, AI is solving the labor shortage problem for fast-food chains
  • Restaurants are typically slow to adopt technologies.
  • But the industry is embracing AI-powered tech tools that are changing how consumers order food.
  • Domino's, McDonald's, and White Castle are using voice bots to take phone and drive-thru orders.

Restaurants typically play catchup when it comes to adopting technologies. But the pandemic forced chains to quickly embrace innovations that save labor costs and improve customer ordering experiences.

Today, restaurants are dramatically changing how they serve customers by deploying artificial-intelligence-powered systems. AI voice bots take orders in White Castle, McDonald's, and Checkers & Rally's drive-thru lanes. Burrito and pizza orders can be made by talking to conversational bots deployed by Chipotle and Domino's. DoorDash recently began offering voice-bot technology to restaurants.

The timing is right for such technologies. Automation tools are growing in popularity as the restaurant industry continues to be challenged by labor shortages and turnover. In the 2023 "State of the Restaurant Industry" report by the National Restaurant Association, about 58% of restaurant operators surveyed said using tech and automation to alleviate labor shortages would become more common this year.

A June Deloitte consumer survey found that consumers were also more willing to frequent restaurants that used automation.

"Voice-automated ordering systems continue to be widely accepted, with 79% of participants at least somewhat likely to return to a restaurant that uses automated voice systems for drive-thru, 74% for phone systems, and 70% for dine-in use," Deloitte said.

Keyvan Mohajer, the CEO of the voice-recognition platform SoundHound, said 2023 had been a banner year for the adoption of voice-automated restaurant solutions.

"This is the year that it's finally happening," Mohajer told Insider in a recent interview.

Here's a rundown of chains rolling out customer-facing AI solutions.

Chick-fil-A

Chick-fil-A has been testing autonomous robots at a "small number of Chick-fil-A restaurants as a helping hand to assist team members with serving guests in the dining room," the company told Insider.

At least two robot food runners have been spotted in Texas. The chain has also been testing autonomous delivery robots in a limited number of California, Texas, and Florida restaurants. The robots are equipped with artificial-intelligence systems and high-tech cameras that allow them to navigate traffic patterns, including maneuvering around pedestrians.

Checkers & Rally's

Last year, Checkers & Rally's became one of the first big chains to implement widespread use of AI-powered voice assistants. Out of the 803 Checkers and Rally's restaurants, voice AI was live in 390 as of August.

Domino's and Wingstop

Tech companies such as ConverseNow are swiftly reshaping how restaurant chains including Domino's and Wingstop take phone orders.

The tech company, founded in 2018, automates the order-taking process with AI-powered virtual assistants.

ConverseNow recently launched a pilot program with Wingstop. The foodtech firm's AI-powered virtual assistants take phone orders in select Wingstop locations. Its self-learning virtual assistants have been programmed to hold deep knowledge of Wingstop's menu and can process orders in English and Spanish.

ConverseNow's voice AI is live in more than 1,800 locations in the US. It also works with Domino's, Fazoli's, and Anthony's Coal Fired Pizza.

White Castle

White Castle plans to roll out SoundHound's AI-powered voice bots to 100 drive-thru lanes by the end of 2024. The expansion comes after the two partnered on a live pilot in Chicago in January 2022.

SoundHound, best known as a music-recognition app, has spent years perfecting its conversational voice AI bots. Hundreds of restaurants now use SoundHound's tech to take phone and drive-thru orders.

During the White Castle test, SoundHound said the average order, once taken and processed, took just over 60 seconds. In some cases, SoundHound's Mohajer said voice bots were "better than humans" because they're faster and more accurate. He said they also tackled restaurant tasks that workers preferred to avoid, such as answering phones.

SoundHound also works with Beef 'O' Brady's, Kneaders bakeries, Naz's Halal, Slim & Husky's, Crust Pizza, Kumori Sushi, Noi Thai Cuisine, Bozelli's Italian Deli, and Dialog Cafe.

Chipotle

The fast-casual fresh-Mex chain from Newport Beach, California, was an early adopter of voice bots. The chain began testing AI-powered voice assistants for phone orders in early 2018. Today, customers can call any Chipotle and order from a conversation bot.

Chipotle is also testing Chippy, a robot fry cook. Chippy uses artificial intelligence to replicate Chipotle's exact chip-making recipe, which results in frying chips to perfection, the company said. Chippy is a one-store test for now.

The chain is also testing internally an avocado-cutting robot named Autocado. The robot is expected to slice guacamole preparation time in half. It's set to eventually use artificial intelligence and machine learning to evaluate the quality of the avocados to help limit waste.

McDonald's

McDonald's has been testing AI-powered ordering in its drive-thru lanes since 2019.

Some restaurants also use voice bots to take orders, but some TikTokers have recently roasted the chain after run-ins with bots led to incorrect orders.

Del Taco, Carl's Jr., and Hardee's

Del Taco, a regional Mexican fast-food chain based in Southern California, said in January that it would expand the use of conversational-AI voice assistants after a successful test. The chain is using the restaurant-tech firm Presto.

Sister burger chains Carl's Jr. and Hardee's also announced plans to test Presto's AI voice bots this year.

During testing, Presto said the bots "greeted guests, reliably accepted their orders, and consistently offered upsell suggestions."

Hardee's and Carl's Jr. are also testing voice AI bots by OpenCity.

Taco Bell

Taco Bell is testing conversational AI at the drive-thru "to help us potentially automate ordering," said Chris Turner, the chief financial officer at Taco Bell's parent company, Yum Brands.

Before scaling, the chain will continue to test it to "ensure that it creates a great customer experience," Turner said. Taco Bell has not disclosed the test location.



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