A Taco Bell fast-food restaurant and drive-thru at dusk in Gastonia, North Carolina.Jeff Greenberg | Universal Images Group | Getty Images

Taco Bell to roll out AI drive-thru ordering in hundreds of locations by end of year

by · CNBC

Key Points

  • Yum Brands said hundreds of Taco Bell locations in the U.S. will use artificial intelligence in drive-thru lanes by the end of 2024.
  • Restaurant companies such as Wendy's and White Castle have been slowly implementing the tech to reduce labor costs and improve speed of service.
  • Yum Brands hopes to roll out voice AI in its drive-thru lanes globally in the future.

In this article

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Yum Brands hopes to use artificial intelligence to take down drive-thru orders at hundreds of Taco Bell restaurants by the end of this year.

The restaurant company announced on Wednesday that it is expanding its rollout of the tech in the U.S. as it eyes implementing it in drive-thru lanes globally.

Yum Brands joins restaurant rivals such as Wendy's and White Castle in betting on voice AI, but its plans are the most ambitious to date. While tech companies may promise that voice AI can speed up service times, reduce labor costs and boost sales through upselling, restaurant companies have taken a more measured approach so far, testing the tech to make sure both its employees and customers enjoy the experience.

In June, McDonald's said it would end its trial of Automated Order Taker, an AI technology tested in partnership with IBM. The Chicago-based company now plans to turn to other vendors instead.

Yum Brands has moved quickly on its test. In May, executives said Taco Bell would expand its pilot of voice AI from five locations to 30 restaurants in California. Currently, more than 100 Taco Bell restaurants in the U.S. use voice AI. Taco Bell had nearly 7,700 U.S. locations at the end of 2023, according to company filings.

Yum Brands said the tech has improved order accuracy, reduced wait times, decreased employees' task load and fueled profitable growth for the restaurant company and its operators.

"With over two years of fine tuning and testing the drive-thru Voice AI technology, we're confident in its effectiveness in optimizing operations and enhancing customer satisfaction," Yum Brands Chief Innovation Officer Lawrence Kim said in a statement.

Five KFC restaurants in Australia are also testing voice AI tech in drive-thrus, Yum Brands said.

Yum Brands is expected to report its second-quarter earnings on Tuesday.

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