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McDonald's pauses AI voice ordering system developed with IBM

2024-06-25 19:10:50.495000

Wendy's has deployed an artificial intelligence chatbot called FreshAI at drive-thrus for at least four Columbus area restaurants. The chatbot, made with Google Cloud and using a synthetic female voice, is able to take orders, answer questions about the menu, and make changes to orders. Wendy's plans to deploy FreshAI at more of its chain locations across the U.S. based on positive test results, and may integrate AI with the Wendy's app, in-restaurant kiosks, mobile devices, and smart home devices. The company clarified that it will not implement surge pricing, despite backlash on social media. Wendy's plans to invest about $20 million to launch digital menu boards at all of its U.S. company-run restaurants by the end of 2025.

McDonald's is ending its AI drive-thru trial in the US after customer order mistakes went viral. The fast food giant had been trialing an AI ordering system developed by IBM at over 100 locations since 2021. The technology uses voice recognition to process orders but has struggled to get them right. Examples of errors include adding bacon to ice cream and adding £166 worth of chicken nuggets to an order. McDonald’s has instructed franchisees to remove the technology by the end of July and has decided against extending the contract with IBM. The company still believes that AI technology will be a part of its future.

Qu, the restaurant technology company, has announced that GoTo Foods (formerly known as Focus Brands) has selected Qu as its single POS platform for all seven of its brands including Auntie Anne’s, Cinnabon, McAlister’s Deli, Moe’s Southwest Grill, and Schlotzsky’s. The selection of Qu will bring a modern and innovation-focused technology foundation, providing more value for franchisees, guests, and restaurant teams. Qu combines native solutions that integrate with delivery and catering providers, online ordering, digital menu boards, and multiple loyalty and back of house technology providers [349dad04]. The collaboration with GoTo Foods underscores the value of Qu's platform for large multi-brand restaurant chains in the QSR and fast casual segments. GoTo Foods is unlocking real-time data and creating economic value for franchisees and their businesses. Qu is backed by leading restaurant entrepreneurs and investors and is focused on infusing speed, agility, and innovation into restaurant chains.

In a recent development, GoTo Foods, the parent company of Auntie Anne’s, Carvel, Cinnabon, Jamba, McAlister’s Deli, Moe’s Southwest Grill, and Schlotzsky’s, has promoted Bobby Morena to the position of Senior Vice President of Franchise Development. Morena joined GoTo Foods in 2021 as the Vice President of Portfolio Management. In his new role, Morena will oversee all aspects of GoTo Foods’ franchise development function, working with independent brand franchisees, real estate, design and construction teams, and brand management teams to ensure franchise growth in the United States and Canada. Brian Krause, Chief Development Officer at GoTo Foods, expresses confidence in Morena's ability to strategically scale the brands. Morena previously served as the Director of Franchise Development at Inspire Brands and spent over 20 years with Jimmy John’s. He currently serves on the board of the Georgia Restaurant Association and holds a Bachelor of Marketing from Michigan State University [1f528778].

Presto Automation Inc. is collaborating with Taco John’s and Qu to implement a Presto Voice™ drive-thru pilot at select Taco John’s restaurants. Presto Voice enhances the drive-thru staff’s productivity by reducing the time they devote to taking orders, allowing them to focus on more critical tasks and reducing associated labor costs. Qu’s unified commerce platform delivers consistent data-driven experiences across all Taco John’s ordering channels and locations. Presto Voice’s initial Taco John’s pilot location in Minnesota went live in April 2024. As a result of its success, Presto and Taco John’s are rolling Presto Voice out to a second location in Taco John’s origin state, Wyoming, which is scheduled to go live before August. Taco John’s operates and franchises nearly 400 restaurants in 23 states. After completing the pilot phase, Taco John’s intends to roll out Presto Voice to their franchised locations this year. [8ba4c9d3]

White Castle, a fast-food chain, is implementing voice AI technology for its drive-thru ordering process. The company is using SoundHound's voice AI system to take drive-thru orders at 15 restaurants, with plans to expand to over 100 drive-thru lanes by the end of 2024. The aim of this technology is to free up time for staff and ensure customers don't feel rushed. SoundHound claims that its voice AI technology is 'more accurate than a human.' Other restaurant chains like Taco Bell and McDonald's have also tested or introduced voice AI drive-thrus. However, voice AI drive-thrus still make mistakes and face criticism for potentially putting workers out of jobs. Despite this, White Castle believes that the voice AI system will allow workers to focus on food preparation and customer service, enhancing efficiency and the overall customer experience. SoundHound offers voice AI services for drive-thrus, phone orders, digital kiosks, and back-of-house operations [a45c6f24].

White Castle has introduced an AI voice assistant named Julia at select locations in St. Louis, Cincinnati, and Merrillville, Indiana. The AI system, developed by SoundHound, allows customers to place their orders through voice commands, aiming to increase efficiency and reduce labor costs. White Castle plans to expand the AI system to more than 100 drive-thru lanes by the end of 2024. SoundHound claims that its AI system is more accurate than human cashiers, with over 90% of orders processed without human intervention. However, challenges remain, as other fast-food chains have faced issues with AI drive-thru systems, and critics express concerns about potential job losses in the industry. [21179231]

McDonald’s has decided to remove AI technology from over 100 drive-thru locations after a trial phase. The AI drive-thrus, which featured a robotic voice to take orders, were first introduced in 2021. McDonald’s has not provided a reason for the removal of the automated drive-thrus, but according to Restaurant Business, the technology will be shut off by July 26. McDonald’s spokesperson stated that plans for automated ordering will be decided by the end of the year. Other fast-food chains such as Wendy’s, Hardee’s, Carl’s Jr, and Del Taco have also employed AI technology at their drive-thrus. A viral video of a customer at a Wendy’s AI drive-thru sparked a debate about the impact of AI on jobs and the future of work. [6a754b1b]

McDonald's is withdrawing its AI-powered ordering system from US drive-through outlets after a series of errors. The voice recognition technology, developed by IBM, was introduced in 2019 but has faced criticism due to numerous viral videos showcasing its mistakes, including orders like bacon-topped ice cream and hundreds of dollars' worth of chicken nuggets. McDonald's has informed franchisees that the AI will be removed from over 100 participating restaurants by the end of July. Despite ending this trial, McDonald's still sees potential in the technology and plans to evaluate long-term solutions for a future voice ordering system by the end of the year. Concerns about job losses for human workers have been raised, as the trial demonstrated that replacing people with AI in such roles is more complicated than anticipated. IBM remains optimistic about its technology and plans to continue collaborating with McDonald's on other projects. [6d6374e7] [5cf044ab]

Wendy's has deployed an artificial intelligence chatbot called FreshAI at drive-thrus for at least four Columbus area restaurants. The chatbot, made with Google Cloud and using a synthetic female voice, is able to take orders, answer questions about the menu, and make changes to orders. Wendy's plans to deploy FreshAI at more of its chain locations across the U.S. based on positive test results, and may integrate AI with the Wendy's app, in-restaurant kiosks, mobile devices, and smart home devices. The company clarified that it will not implement surge pricing, despite backlash on social media. Wendy's plans to invest about $20 million to launch digital menu boards at all of its U.S. company-run restaurants by the end of 2025. [4ad56b5b]

McDonald’s has paused its two-year test of algorithmic, voice-activated automated order taking (AOT) developed with IBM. The decision to halt AOT at all 100 McDonald’s drive-throughs using it by July 26, 2024, was announced in an email memo to franchisees. However, McDonald’s plans to relaunch a voice ordering solution for drive-thru in the future, stating that its work with IBM has given them confidence in the technology. The system had trouble getting orders right when spoken in different accents and dialects, leading to performance issues and frustration among franchisees. McDonald’s CEO Chris Kempczinski has said that IBM’s AOT will continue to be integrated into its technology systems in some form. McDonald’s previously sold its McD Tech Labs to IBM in 2021 and announced a strategic partnership with Google in December 2023.

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