Restaurant brands are beginning to test the use of artificial intelligence (AI) to streamline their food service operations. Analysts believe that one of the key advantages of AI is its potential to address workforce challenges in a tight job market. Several pilot programs have already been initiated.

From drive-thru operations to back-of-house tasks and predictive ordering for customers, restaurant brands are now piloting AI technology to streamline their food service operations.

While major chains have yet to fully embrace this technology, it has the potential to automate various tasks and provide restaurant workers with more meaningful interactions with guests.

Analysts highlight that one of the main benefits of AI is its ability to alleviate workforce challenges in a job market with limited hiring opportunities. The National Restaurant Association predicts that the industry will create 500,000 jobs by the end of 2023, but currently, there is only one job seeker for every two open positions.

Moreover, TD Cowen estimates that voice-enabled AI can increase sales by up to 15% through suggestive selling and reduce service times by 10 seconds.

This industry shift is reminiscent of the emergence of third-party delivery services five years ago, before they became commonplace in almost every major restaurant. Andrew Charles, the managing director of consumer and restaurants at TD Cowen, states that some restaurants were experimenting with these services, while others were considering them, and most were piloting them. He believes that a similar trend will occur as AI adoption continues to grow.

However, there are still obstacles to widespread adoption. Many large restaurant chains need to convince their franchisees to embrace AI. Language barriers and menu complexities can complicate the ordering process, which AI may struggle to navigate.

Nevertheless, a wave of pilot programs has already begun.

Last month, CKE, the parent company of Carl’s Jr. and Hardee’s, announced its plan to launch nationwide AI integrations through partnerships with Presto and OpenCity AI.

Yum! Brands has been a leader in leveraging AI to enhance operations in recent years. This includes its 2021 acquisition of Dragontail, aimed at streamlining food preparation and delivery. The technology, which automates kitchen flow, driver dispatch, and customer order tracking, is currently used in 1,000 Pizza Hut locations in the U.S. and nearly 3,000 more globally. The company also relies on AI for its recommended ordering module that assists managers in determining weekly product orders.

McDonald’s sold McD Tech Labs to IBM in 2021, entering into a strategic partnership to bring AI technology to its drive-thru lanes. McD Tech Labs, formerly known as Apprente, used AI to understand drive-thru orders. McDonald’s has tested this technology at select locations.

Del Taco and Wingstop are also utilizing voice-activated AI for drive-thru and phone orders, respectively.

Panera Bread has invested in AI technology for both front-of-house and back-of-house operations. The company is collaborating with OpenCity AI for drive-thru voice ordering and with Miso Robotics to enhance coffee quality and temperature control, ensuring consistent product standards.

According to Chief Digital Officer George Hanson, Panera aims to redeploy its employees to focus on higher-value guest experiences, such as food preparation, quality control, and in-person interactions. Hanson believes that warm interactions, such as checking on meals or assisting with table bussing, add more value to the customer experience.

Chipotle, a technology leader in the restaurant industry, has also partnered with Miso Robotics. The company has introduced Chippy, a robotic chipmaker, which is currently installed and cooking chips at a restaurant location in Fountain Valley, California. Chippy, trained using AI, can recreate Chipotle's chip recipe with precise amounts of salt and fresh lime juice. The next version of Chippy will also determine the required quantity of chips.

Chipotle has implemented AI in its app for suggestive ordering and uses camera systems at its Cultivate Center test kitchen to gather real-time data on customer volume, enabling more accurate predictions of product requirements and reducing reactive measures.

Chief Customer and Technology Officer Curt Garner hopes that AI and robotics will enhance and improve human experiences at Chipotle restaurants. He emphasizes that these technologies should serve as tools to assist crew members, managers, and teams in adapting to their current environments, rather than replacing them in serving guests and running the business.