Taco Bell, under the umbrella of Yum Brands, is set to significantly expand its use of voice-activated AI in drive-thrus, aiming to implement the technology in hundreds of additional locations by the end of this year. Currently, the fast-food giant has installed voice AI in over 100 drive-thrus across 13 states.
The development of this technology, which Taco Bell has been working on for the past two years using both third-party vendors and in-house solutions, is driven by the need to address rising labor costs and enhance operational efficiency. Voice-activated AI handles routine tasks, allowing employees to focus more on delivering exceptional customer service. This approach not only streamlines operations but also aims to improve order accuracy, reduce wait times, and offer a more consistent and friendly customer experience.
Dane Mathews, Taco Bell’s Chief Digital and Technology Officer, emphasized the technology’s benefits for team members: “The team member’s experience is difficult. It’s a really hard job. This technology makes their job easier at the end of the day and might even add a little bit more fun to the experience.”
Despite its potential to reduce the number of required staff, Mathews clarified that the company has not observed lower labor costs from early implementations. Instead, the primary advantage has been the reduction of mundane tasks, which contributes to better job satisfaction and employee retention.
As Taco Bell, the nation’s fourth-largest restaurant chain with over 7,400 locations and $15 billion in system sales, moves forward with its AI expansion, it is setting a precedent in the industry. While some smaller chains like Carl’s Jr., Hardee’s, Krystal, and Checkers and Rally’s have begun using similar technology, larger chains such as Wendy’s and Dunkin’ are still in the testing phase. McDonald’s, for example, recently ended its partnership with IBM for a drive-thru AI test, though it remains optimistic about the technology’s potential.
The complexity of the U.S. market, with its diverse dialects and ordering habits, presents challenges for voice AI. “Voice AI is a tough piece of technology,” Mathews noted, acknowledging the ongoing development and refinement required.
Taco Bell’s expansion of AI technology also serves as a valuable testing ground for Yum Brands. The integration of digital menu boards and Yum’s proprietary point-of-sale system, Poseidon, at Taco Bell locations provides a robust platform for fine-tuning the technology.
In addition to U.S. locations, Yum Brands is also testing drive-thru AI at five KFC restaurants in Australia. Lawrence Kim, Yum’s Chief Innovation Officer, expressed confidence in the technology’s effectiveness, stating, “With over two years of fine-tuning and testing the drive-thru voice AI technology, we’re confident in its effectiveness in optimizing operations and enhancing customer satisfaction.”
While Taco Bell’s AI technology is making strides, Mathews acknowledges that there is still room for improvement: “It’s getting better. I would say it’s accurate enough to give us real confidence that this is going to deliver real benefits to the system. But we still have a ways to go.”