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Leading fast-food companies are replacing their staff with automated technology in an effort to combat increasing labor costs.
Yum Brands, which owns Taco Bell, KFC, and Pizza Hut, declared on Tuesday that AI will handle drive-thru orders at 500 outlets by this summer.
Driven by Nvidia processors yet crafted internally, this technology enables users to interact with AI assistants similarly to how they would with an Amazon Echo device.
The ultimate objective is for all orders to be placed through computer systems—whether via AI assistants, digital kiosks, or mobile applications—rather than by human beings.
Managers are hoping this move will reduce labor expenses and also increase sales, since AI could recommend menu items according to customers' preferences.
Following years of increased menu prices after the pandemic – due to higher expenses for ingredients and employees – consumers responded by reducing their spending at establishments like McDonald's in 2024.
Wages are still increasing. In California, legislators increased the minimum wage For restaurant employees set at $20. Elsewhere, ten U.S. states — along with 48 cities and counties — currently do so. maintain a base pay exceeding $15 per hour .
However, restaurant managers realize they can’t significantly increase prices to offset higher wages, so they are turning more towards technology as a way to substitute for their staff.
Yum!'s new drive-thru initiative marks the start of their collaboration with Nvidia, aimed at advancing AI technology. This partnership was unveiled earlier this week as well.
Other scheduled enhancements consist of incorporating computer vision to identify order errors and utilizing AI to scrutinize online discussions for significant customer insights—domains where Nvidia is set to have a crucial impact.
Even though jobs may be lost, Yum's Joe Park presented the information positively, emphasizing benefits for remaining employees and customers alike.
T The collaboration aims to develop more intelligent AI systems that will provide simpler experiences for both our clients and staff," he stated.
It is anticipated that AI will also handle customer service calls, thereby diminishing the requirement for human employees even more.
Given that food and labor costs represent major expenditures for eateries, numerous players within the sector view artificial intelligence as the sole means to sustain profitability levels with increasing wage demands.
Several businesses such as Burger King have already done so. turned to technology In California — introducing digital menus instead of frontline staff.
Currently, Yum! Brands oversees over 60,000 outlets worldwide and has a workforce of 23,000 employees in the United States.
Approximately 85 percent of the company's staff members are employed in restaurants.
Yum Brands is well-versed in AI technologies. The corporation has already been piloting Nvidia’s solutions at certain Taco Bell and Pizza Hut outlets throughout the U.S. to enhance drive-thru services.
The firm stated that continued utilization of artificial intelligence technology will aid in 'enhancing consumer satisfaction and increasing shareholder value.'
It’s not the sole eatery resorting to computers for assistance in the kitchen as well.
Chipotle has introduced AI-powered robots in outlets nationwide to help cut avocados .
Wendy's, IHOP, and Sweetgreen have similarly turned to robots to assist in the kitchen.
Meanwhile, California-based burger chain Miso Robotics and coffee brand Cafe-X have built brand images as a robotics-only restaurants.
Pawonation.com did not receive an immediate response from Yum Brands regarding their inquiry for comments.
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