TODD-9000: Bot My Burger

I’m afraid I can’t do that, Dave!

Let the takeover begin! The Wendy's Company , yes Wendy's is now incorporating into their fast food restaurants,…I mean Quick Service Restaurant (QSR).

Fun Fact: 75-80% of Wendy’s orders come through their drive-thru.

Wendy’s announced a partnership with Google Cloud to develop the Wendy’s FreshAI platform.

"Wendy's introduced the first modern pick-up window in the industry more than 50 years ago, and we're thrilled to continue our work with Google Cloud to bring a new wave of innovation to the drive-thru experience," said Todd Penegor , President and CEO of Wendy's. "Google Cloud's generative AI technology creates a huge opportunity for us to deliver a truly for our customers, and allows our employees to continue focusing on making great food and building relationships with fans that keep them coming back time and again."

After 50 years of humans manning the drive-thru, move over, the bots are here!

Wendy’s is innovating to meet customers at the drive-thru to deliver ‘truly differentiated, faster and frictionless experiences for our customers...'

With a bot manning the drive-thru window along with a giant digital menu display to confirm orders visually, Wendy’s hopes to have more accurate order-taking thereby reducing human error, increasing order completion as well as providing customers with quick answers when ordering options or substitutions.

The AI will also be able to intuit what you want. For example, if you ask for a chocolate shake, the AI knows you want a chocolate Frosty. Want a JBC, the AI knows it’s a Junior Bacon Cheeseburger. (Sidenote: My favorite combo...so I’m happy)

This AI technology behind Wendy’s FreshAI is in order to:

• Deliver with greater speed
• Improve accuracy
• Achieve consistency
• Improve CSAT score
• Reduce transaction costs

Why is Wendy’s going full-tilt AI significant?

It has to! Worker shortage and inflation in all its variations are the primary drivers. But, it also signals the coming wave of AI applications that will impact hourly workers. The future of hourly is going to take a hit. As bots move into the drive-thru, fewer people will be needed to run a Wendy’s franchise.

Wendy’s stated intent in implementing Generative AI is to “streamline the drive-thru ordering process by making it easier for employees to fill orders and provide excellent customer service.” according to Todd Penegor.

The problem?

Streamlining is usually a euphemism for cutting costs (i.e., reducing employee headcount).

Make no mistake, the impact of AI in the hourly space is going to be extremely disruptive. As minimum wages continue to rise throughout the U.S. (e.g., California just went to $20 an hour), franchisees will look for ways to reduce their overhead.

First to go? Well, look no further than the drive-thru!

Raising the minimum wage is a double-edged sword. On one hand, you want to pay employees more as to help them keep up with inflation. On the other hand, raising the minimum wage makes it easier for franchisees to find alternatives to hiring or keeping employees (i.e., AI or automating some positions) in order to remain profitable. Catch-22.

This announcement, this move, is significant because Wendy’s is a local brand, not some distant corporation in some distant state or country. This is undeniable evidence that the AI technology wave is moving inland and the disruption (or devastation) is now at our local doorstep!

Can it be stopped?

Todd 9000: I’m afraid I can’t do that, Dave!

Victor Antonio