https://fortune.com/2023/05/09/wendys-ai-powered-chatbot-drive-thru-orders/

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Tech *Wendy's

Your next Wendy's drive-thru order may be taken by an A.I. chatbot
that understands a 'milkshake' is actually a 'frosty' in the chain's
lingo

BYDaniela Sirtori-Cortina and Bloomberg
May 9, 2023, 6:34 PM UTC
 
 
 
 
[GettyImage][GettyImage]
Wendy's plans to use an A.I. chatbot to take drive-thru orders.
Justin Sullivan/Getty Images

Wendy's will begin testing an artificial intelligence-powered chatbot
next month that will talk to customers and take drive-thru orders,
becoming the latest fast-food chain to employ the technology.

The system, powered by Google Cloud's AI software, will be as natural
as talking to an employee and has the ability to understand speech
and answer frequently asked questions, the company said. 

Wendy's is one of several restaurants incorporating AI and automation
to improve customer service, while grappling with labor shortages.
What's more, drive-thrus have surged in popularity during the
pandemic, with the chain saying 80% of its customers prefer ordering
that way. 

This "creates a huge opportunity for us to deliver a truly
differentiated, faster and frictionless experience for our
customers," Chief Executive Officer Todd Penegor said in a statement.

Wendy's shares rose less than 1% at 11:24 a.m. in New York, bringing
the company's advance to 1.7% this year. The S&P 500 Restaurants
Index rose 13.5% in the same period.

Interest in AI chatbots from investors and the public has surged
after the release of OpenAI's ChatGPT last year. That touched off a
race among tech giants, including Google parent Alphabet, to push the
new chatbot technology into the business world. 

Opinions on what AI will mean for workers and companies vary greatly,
from massive disruption to marginal change. In the view of Presto
Automation, which offers an AI ordering platform for restaurants, the
technology will shake up the industry.

"I don't think in three years, there's going to be a drive-thru
having a human take your orders," Krishna Gupta, Presto's chairman
and interim chief executive officer, told Bloomberg Television last
week.

Wendy's, which is debuting its chatbot at a company-owned store near
Columbus, Ohio, is trying to reduce miscommunication and mistakes by
automating the process, it said. The company declined to comment on
how the technology might reduce the need for employees, though it
said the system should help streamline the ordering process so staff
can focus on serving food quickly.

Using AI to take orders could pay off for Wendy's because it lags
peers in wait times and accuracy, according to data provider Intouch
Insight. The company is also looking to accelerate growth this year
as it embarks on a restructuring plan to cut costs. The chain reports
first-quarter earnings on Wednesday. Recent results from competitors
like McDonald's and Chipotle have beat Wall Street expectations,
suggesting consumers are still dining out. 

At the test location, a restaurant employee will monitor the
drive-thru to make sure the AI can address all requests and be there
in case a customer asks to speak with a human, according to Wendy's
Chief Information Officer Kevin Vasconi.

The chatbot will have a female voice and be able to understand
requested items that aren't phrased exactly as they appear on the
menu. It will know that a "large milkshake" corresponds to the
chain's "large Frosty," Vasconi said. 

After the AI confirms the order on a screen customers can see, a
ticket will make its way to the kitchen -- just the same as when an
employee talks to diners. 

Wendy's doesn't expect the chatbot to be perfect. Its order accuracy
in 2022 was 79%, according to Intouch Insight. The chain's initial
goal for the AI is to boost that past 85%, which would put it on par
with competitors.

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