Major fast food chains are swapping out employees for computers as a way to battle rising wages.
Yum Brands — the owner of Taco Bell, KFC, and Pizza Hut — announced Tuesday that AI will take drive-thru orders at 500 locations by summer.
Powered by Nvidia chips but developed in-house, the technology will have customers speaking to AI assistants much like an Alexa device.
The end game is to have all orders taken by computers — be that via AI assistants, digital kiosks or phone apps — rather then by humans.
Bosses hope that it will not only cuts labor costs but boost sales — as AI can suggest menu items based on customer preferences.
After years of menu price hikes post-pandemic — driven by rising costs for food and staff — customers voted with their wallets and spent less at the likes of McDonald’s in 2024.
Wages are continuing to climb. In California, lawmakers increased the minimum wage for restaurant workers to $20. Elsewhere, ten US states — along with 48 cities and counties — now have a minimum wage above $15 an hour.
But restaurant bosses know they cannot hike prices more to cover higher wages — so they are increasingly looking at technology to replace workers.
Yum Brands, the owner of Taco Bell’s brand, said it is advancing AI capabilities in stores
Yum’s new drive-thru is just the beginning of the AI push, which it is working with Nvidia on as part of a long term deal that was also announced on Tuesday.
Other planned upgrades include computer vision to detect order mistakes and AI that analyzes online chatter for valuable customer feedback — both areas where Nvidia will play a key role.
While workers will likely be replaced, Yum’s Joe Park spun the news as a positive for staff that remain and customers.
The partnership will ‘build smarter AI engines that will create easier experiences for our customers and team members,’ he said.
AI is also expected to take over customer service calls, further reducing the need for human workers.
With food and labor costs among the biggest expenses for restaurants, many in the industry see AI as the only way to maintain profit margins amid rising wages.
Some companies, including Burger King, have already turned to technology in California — launching digital menus in place of front-end workers.
Yum Brands currently operates more than 60,000 global locations and employs 23,000 people in the US.
While workers will likely be replaced, Yum’s Joe Park spun the news as a positive for staff that remain and customers
The new AI bots could replace drive-thru employees
Dozens of fast-food chains are adding more digital interfaces with customer service issues, like Burger King
Around 85 percent of the company’s employees work in restaurants.
Yum Brands is not an AI-novice. The company has already been testing Nvidia’s technology in select Taco Bell and Pizza Hut locations across the US to help with drive thru operations.
The company said the further use of AI tech will help ‘delighting consumers and maximizing shareholder returns.’
It’s also not the only restaurant turning to computers for some help behind the counter.
Chipotle has deployed AI-driven robots in stores across the country to help cut avocados.
Wendy’s, IHOP, and Sweetgreen have also turned to robots to help in the kitchen.
Meanwhile, California-based burger chain Miso Robotics and coffee brand Cafe-X have built brand images as a robotics-only restaurants.
Yum Brands didn’t immediately respond to DailyMail.com’s request for comment.
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