Dive Brief:
- Taco Bell is adding voice artificial intelligence drive-thru technology to hundreds of U.S. locations this year, parent company Yum Brands said in a press release.
- The technology is currently in use at more than 100 Taco Bell locations in 13 states and is meant to improve the ordering experience for customers and back-of-house operations.
- This deployment is a massive acceleration. The chain tested voice AI in five California Taco Bells during the first quarter; Yum initially expected to expand it to 30 stores during the second quarter. The chain said the technology has received positive consumer feedback.
Dive Insight:
Yum Brands has been testing and fine tuning its drive-thru voice AI technology for two years, said Lawrence Kim, Yum’s chief innovation officer. Taco Bell and Yum Brands have worked closely on this test, incorporating feedback from Taco Bell franchisees to ensure the technology benefits employees and customers. Voice AI results in improved order accuracy, a consistent, friendly experience, shorter wait times and profitability growth for Taco Bell, Yum and its franchisees, the press release said.
“Yum! Brands is integrating digital and technology into all aspects of our business with exciting new capabilities, and AI is a core piece of that strategy,” Kim said.
Taco Bell’s drive-thru ecosystem is already digital heavy, with technology including digital menu boards, Yum’s proprietary Poseidon point-of-sales system and the next generation of the Taco Bell Rewards program, which will be integrated later this year.
Creating an integrated digital ecosystem has grown Yum’s digital sales to $30 billion. Over half of the sales across Yum’s system came through digital channels as of the first quarter of 2024. Its digital business has more then doubled since 2019.
Yum has been acquiring and creating technologies and, in some cases, working with leading partners to create its global technology suite. In 2021, the company acquired Dragontail AI, an automated kitchen order management and delivery technology. As of Q1, Yum installed the technology at over 7,000 Pizza Huts. The company also laid out a plan to bring Dragontail and Poseidon to its KFC U.S. restaurants.
Other restaurant companies are looking into AI technology, including Chipotle, which is testing various pieces of automated back-of-house equipment, and Wendy’s, which has been deploying drive-thru AI. Taco John’s, Checkers & Rally’s, Carl’s Jr. and Hardee’s and Bojangles have also been testing or deploying drive-thru AI.
