In a move to cut labor costs and boost efficiency, major fast food chains are increasingly swapping human employees for advanced technology.
As wages continue to rise across the U.S., companies like Yum Brands, the parent company of Taco Bell, KFC, and Pizza Hut, are exploring AI solutions to streamline operations and reduce reliance on staff.
AI to Take Over Drive-Thru Orders
Yum Brands recently made a bold announcement: by summer, AI will be handling drive-thru orders at 500 of their locations.
Developed in partnership with Nvidia and powered by their advanced chips, the new technology will have customers interacting with AI assistants, similar to how they might use devices like Alexa.
While this marks a significant shift, the long-term goal is clear—AI, digital kiosks, and phone apps will take over all order-taking processes, replacing human workers.
The company hopes this move will not only cut labor costs but also boost sales, as the AI assistants will be able to suggest menu items tailored to customer preferences.
The Impact of Rising Wages
The decision comes in the wake of rising wages and post-pandemic price hikes that have led to customer cutbacks.
For instance, in 2024, many customers spent less at fast food giants like McDonald’s due to the increasing costs of food and labor.
In California, lawmakers recently raised the minimum wage for restaurant workers to $20, and several other states and cities have raised their minimum wage to over $15 per hour.
With inflation and rising wages continuing to climb, fast food giants are seeking alternatives to further price hikes.
They’re turning to technology as a solution, hoping AI can help them manage rising costs without losing profits.
Yum’s Long-Term AI Partnership
Yum’s AI initiative is just getting started. The company has partnered with Nvidia for a long-term deal, with plans to integrate even more AI technologies into their operations.
For instance, AI-driven computer vision will be used to detect order mistakes, while AI analysis of customer feedback will be harnessed to improve services.
Yum’s Joe Park emphasized that the technology would not only help improve the customer experience but also provide a better work environment for the employees who remain.
He mentioned that the partnership would allow them to “build smarter AI engines,” ultimately making life easier for both customers and staff.
The Growing Trend of Automation in Restaurants
While Yum Brands is diving deep into AI, they’re far from the only restaurant chain experimenting with automation.
Companies like Burger King and Chipotle have already rolled out technology in place of workers.
For example, Chipotle has deployed AI-powered robots in its stores to assist in tasks like cutting avocados, while Wendy’s, IHOP, and Sweetgreen have integrated robots in their kitchens.
Even fully robotics-based restaurants like Miso Robotics and Cafe-X have emerged, showing that the trend toward automation is only gaining momentum in the food industry.
Looking Ahead to a Future with More AI
As more and more restaurants embrace AI and robotics, it’s clear that the future of fast food could look very different.
Yum Brands is betting that AI will not only help them save on labor costs but also enhance customer service.
With more AI technology being integrated into every aspect of operations—from order-taking to food preparation—it seems inevitable that automation will become a major part of the fast food experience.
Though many employees may be replaced by machines, this shift could create new job opportunities in tech and AI fields, as companies continue to innovate and invest in automation.
For now, it seems that AI is here to stay in the fast food industry.