Taco Bell parent company invests $1 billion in AI-powered restaurant technology

Taco Bell is ramping up its use of AI as part of a broader $1 billion investment by parent company Yum Brands in digital and technology.

At a recent investor event in New York, executives showcased the company’s ‘Byte by Yum’ AI tools, which aim to improve labour management and inventory tracking. Taco Bell’s Chief Digital and Technology Officer, Dane Mathews, said AI is already being used to streamline operations without reducing labour costs.

Around 500 Taco Bell locations in the United States now use AI-driven voice technology to handle drive-through orders, a significant increase from 100 locations in mid-2024.

During the investor event, executives presented a video skit demonstrating how AI could assist managers by suggesting staffing adjustments and optimising inventory. Analysts found the presentation both innovative and slightly unsettling, with Yum suggesting AI would help free up employees for other tasks rather than replace them.

Fast food chains are increasingly adopting AI to modernise operations, with companies like McDonald’s and Chipotle also investing in automation and digital tools. While Yum’s AI technology is currently used in nearly 25,000 of its 61,000 global restaurants, executives acknowledged there is still a long road ahead.

Analysts believe Yum may eventually commercialise its AI software beyond its own restaurant network. Taco Bell’s AI-driven strategy comes as the chain projects an 8% rise in same-store sales for the current quarter.

Source: https://dig.watch/