Yum Brands Inc. and Taco Bell Inc. revealed cutting-edge AI-powered tools during an investor event, underscoring a $1 billion technology investment. The demonstration included a skit featuring an AI assistant that manages drive-through orders, aiming to streamline labor and inventory while enhancing customer service today in real-time.
At a Yum investor presentation in Brooklyn, NY, on Tuesday, executives from both companies unveiled their “Byte by Yum” AI-powered solutions for restaurant management. Yum also revealed that it has invested $1 billion into digital and technology, Reuters reports.
There was a mention of AI in the context of labor and inventory by Taco Bell’s chief digital and technology officer, Dane Mathews, during the event.
Yum CEO Jason Kidd showed a video skit to Wall Street analysts that showcased the company’s present and future usage of artificial intelligence. In the comedy, a human actor plays the part of an AI helper, and the two have a conversation about the company’s Byte AI Restaurant Coach.
“I noticed Brad hasn’t clocked in yet for his shift, and you’re heading into your last shift crew for the night,” the actor portraying the AI assistant remarks to the manager of Taco Bell.
“Maybe he’s out sick. Don’t worry if he is. I can work the drive-through,” the AI figure informs the manager.
A presentation shown by the executives following the skit indicated that approximately 500 Taco Bell locations in the US have artificial intelligence speech technology available to take drive-through orders. This is an increase from Yum’s July 2024 citation of around 100 sites.
A Morgan Stanley analyst found Yum’s video spoof both entertaining and disturbing. Taco Bell will not be using AI to cut labor expenses, according to Yum’s Chief Technology Officer Joe Park. Instead, the company plans to use AI to provide workers more flexibility.
More and more, fast food chains are looking to technology to shake up a business strategy that hasn’t changed much since the 1940s. Kiosks, computerized menus, applications, drive-throughs with artificial intelligence, and loyalty programs have all been more common in the past ten years or so.
If you asked a Yum representative whether AI is doing these jobs at any Taco Bells right now or if the act was just a preview of its future plans, she did not respond right away.
Taco Bell same-store sales are expected to rise by 8 percent in the current quarter, according to Yum.
Attending Bernstein analysts expressed their enthusiasm for Yum’s in-house software suite in a note to investors. The Yum team hinted that the software might be sold outside of Yum’s ecosystem in the future.
Luis Gochoco is a seasoned managing editor and writer with over a decade of experience covering politics, technology, gaming, and entertainment news. With a keen eye for breaking stories and in-depth analysis, he has established himself as a trusted voice in digital journalism. Luis is one of the key forces behind the success of GameNGuide, contributing to 12 million views through engaging and high-traffic content. He also played a pivotal role in generating 8 million views on International Business Times, shaping the platform’s technology and gaming coverage.
Discover more from Today's Esquire
Subscribe to get the latest posts sent to your email.