Dive Brief:
- Taco Bell is investing in AI technology to help build on the momentum of its same-store sales growth, which reached 4% year-over-year during its latest quarter, executives from parent company Yum! Brands said on a Q3 2024 earnings call last week.
- The restaurant chain is continuing to expand its drive-thru voice AI network, which is now in place at 300 U.S. locations, according to Yum CFO Chris Turner. Taco Bell has processed more than 2 million orders since the pilot went live in the first quarter of 2024.
- The number of Taco Bell loyalty members active during the 90 days of Q3 2024 was 50% greater than in Q3 2023, according to Yum CEO David Gibbs.
Dive Insight:
Taco Bell is leaning into technology to improve the speed and efficiency of its drive-thrus and schedule shifts.
Taco Bell’s drive-thru voice AI was designed for internal and external applications. An AI assistant takes orders and relays the information to the staff. The system is designed to help restaurant employees manage orders, reducing their workload, while enabling more accurate order fulfillment for customers.
“The customer response has been very positive, and our team members really enjoy having what they call an extra pair of hands in the restaurant to help them operate the store,” Turner said during the earnings call.
The drive-thru voice AI requires digital menu boards, which are currently installed at more than 6,000 restaurants and will become Taco Bell brand standard in 2025.
The restaurant chain is also using AI to schedule labor in 5,000 U.S. restaurants, according to Turner. The software is making operations more efficient, and Yum plans to expand the solution to its other restaurant brands in 2025.
Taco Bell isn’t the only fast food company exploring the CX benefits of AI. Wendy’s is experimenting with a voice AI drive-thru technology, and though McDonald’s paused its pilot in June, the company’s executives still see a future for automated order taking.
