Yum Brands, the parent company of Taco Bell, KFC, and Pizza Hut, has teamed up with technology giant Nvidia in a groundbreaking move to accelerate the adoption of AI-driven ordering at drive-thrus.
Why it matters: This partnership marks a significant step towards revolutionizing the fast-food industry, with AI already taking orders at some restaurants’ drive-thru lanes.
The announcement: On Tuesday, Yum Brands — the world’s largest restaurant company, operating over 61,000 locations globally — and Nvidia revealed an “industry-first collaboration.” This marks Nvidia’s first venture into AI-powered restaurant partnerships. The technology will enhance and scale Yum Brands’ existing Byte by Yum platform.
Big picture: The integration of artificial intelligence into the drive-thru process promises to streamline ordering, boosting both efficiency and customer satisfaction. AI could also reduce operational costs, improving profitability.
Andrew Sun, Nvidia’s Global Director of Retail, CPG, and QSR Business Development, expressed enthusiasm for the partnership, stating, “Together with Yum, we aim to drive forward innovation and address some of the toughest challenges in the industry.”
Rollout plans: Joe Park, Yum Brands’ Chief Digital and Technology Officer, told Axios that AI solutions have already begun piloting at select Taco Bell and Pizza Hut locations. The companies aim to expand AI-driven features to around 500 restaurants across Yum’s brands, including Habit Burger & Grill, beginning in the second quarter of this year.
A key focus of the rollout is the introduction of voice-automated order taking at drive-thrus and call centers, particularly for Pizza Hut. AI will also assist in real-time analysis, such as counting the number of cars in line at the drive-thru and suggesting quicker-to-prepare menu items to optimize service speed.
“If the system detects a line of four or five cars, it can suggest menu items that can be prepared more quickly, helping to reduce wait times,” Park explained.
Future of AI in fast food: Yum Brands also plans to utilize AI to enhance order accuracy and leverage AI-driven analytics to track and improve restaurant performance.
Challenges ahead: Despite the promising potential, the implementation of AI in fast food hasn’t been without its challenges. McDonald’s, a rival in the space, ended its AI drive-thru pilot last summer after experiencing notable errors that led to backlash on social media. Despite this setback, McDonald’s remains optimistic about the future of AI in drive-thrus, with plans to continue exploring voice ordering solutions powered by IBM technology.
As Yum Brands moves forward with its AI initiatives, it remains to be seen how the technology will evolve in the fast-food sector, but the partnership with Nvidia positions them as leaders in shaping the future of restaurant ordering.
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