Yum Brands and Nvidia Partner to Introduce AI in Fast Food Ordering
Customers at fast-food drive-throughs may soon engage with artificial intelligence when ordering their favorite meals, thanks to a new partnership between Yum Brands Inc. and Nvidia.
Yum Brands, the parent company of well-known chains like Taco Bell, Pizza Hut, KFC, and Habit Burger Grill, announced the collaboration during Nvidia’s annual GTC conference, which attracts thousands of tech enthusiasts and professionals. This partnership aims to enhance the integration of AI into the restaurant sector.
Advancements in AI Technology for Restaurants
The collaboration focuses on leveraging Nvidia’s advanced technology to create AI agents capable of handling customer orders efficiently at both drive-throughs and call centers. According to Yum Brands, these AI tools can analyze large data sets to improve operational efficiency and optimize restaurant management.
During his presentation at GTC, Joe Park, Yum Brands’ chief digital and technology officer, noted this shift towards digital transformation, highlighting that digital sales now account for over 50% of the company’s revenue, rising significantly from 19% in 2019.
Implementation of AI Solutions
Yum Brands is actively piloting these AI systems across select Taco Bell and Pizza Hut locations in the U.S. The company plans a broader rollout, with AI implementations set for 500 restaurants within its brand portfolio, which encompasses over 61,000 locations worldwide.
While the specific locations for these pilot programs remain undisclosed, Yum Brands aims to utilize AI to measure restaurant performance and derive actionable insights for managers to enhance operations.
Enhancing the Ordering Process
One significant advantage of integrating AI in fast-food ordering is the potential to streamline the customer experience. AI technology is designed to decrease ordering times, particularly during peak periods such as game days when customer demand is high.
According to a study by Intouch Insights, the average drive-through wait time is approximately 5 minutes and 29 seconds. The use of AI, though still in its infancy at only 4% of drive-throughs, has already demonstrated the capacity to reduce wait times by an average of 29 seconds. Park emphasized that AI can enhance customer interactions by maintaining a consistently positive tone, offering appropriate responses, and effectively upselling.
Previous AI Initiatives by Taco Bell
Taco Bell has previously explored the potential of AI technology, having implemented voice AI in over 100 drive-through locations across 13 states last year. The company cites several benefits of this technology, including improved order accuracy, reduced wait times, and enhanced customer experiences, all while alleviating the pressure on staff members.
Broader Trends in the Fast Food Industry
Yum Brands isn’t alone in experimenting with AI. Other fast-food chains, including Wendy’s, McDonald’s, White Castle, and Panda Express, have also trialed AI-powered ordering systems. However, the transition hasn’t been without challenges; some customers reported issues related to order accuracy when interacting with AI systems at drive-throughs.
In a notable instance, McDonald’s decided to discontinue its partnership with IBM last year, leading to the removal of AI ordering at more than 100 locations, although the company is still exploring future AI possibilities with different partners.
Conclusion
The partnership between Yum Brands and Nvidia marks a significant step toward the modernization of the fast food industry through artificial intelligence. As the technology evolves, both companies remain optimistic about its potential to enhance customer experience and operational efficiency across their vast network of restaurants.