Dive Brief:
- Wendy’s is on track to implement digital menu boards and AI drive-thru ordering systems at over 500 restaurants by the end of the year, President and CEO Kirk Tanner said during the company’s earnings call on Friday.
- The chain's Fresh AI technology, which automates the drive thru ordering process, has now been deployed to over 160 restaurants across the U.S. The platform continues to improve through company enhancements and interactions with customers, CFO Ken Cook said during the earnings call.
- Digital menu boards and automated drive-thru ordering is part of the chain’s strategic pillar to improve customer experience by providing more personalization, convenience and hospitality, Tanner said. Franchisees began piloting the technology in 2024.
Dive Insight:
The implementation of drive-thru AI is part of Wendy’s larger technology strategy that also includes enhancements to its app and an expansion of its loyalty program. These tools could help boost same-store sales, which were down by 2.8% in the U.S. during the first quarter.
Fresh AI, which Wendy’s began testing in 2023 in partnership with Google Cloud, offers suggestions based on a customer’s order that can increase check size, Tanner said. Additionally, the chain has seen improvements to order accuracy and efficiency in restaurants since employees can now focus on speed of service and delivering an accurate order.
Wendy’s is among a handful of chains, including Taco Bell, Zaxbys, Church’s Texas Chicken and Bojangles, that have been adding drive-thru AI across their systems.
Additionally, Wendy’s updated its app by adding gamification that’s engaging customers beyond the point of sale, Tanner said. The app can also now send digital messages to customers that are relevant to them.
“These updates are driving improvements across app engagement metrics, including conversion rate, which reached an all-time high in the first quarter and drove our digital mix to a record of over 20% of total sales,” Tanner said.
The chain is also rolling out two additional initiatives, menu item label printers and smart delivery scales, to boost order accuracy, which customers say is an important driver of satisfaction, according to Tanner. Menu item labels will ensure that sandwiches are customized per customers’ requests while delivery scales will make sure that customers receive all the items they ordered.
“In restaurants that utilize these tools, order accuracy is significantly improved,” Tanner said. “While we are still in the early innings of delivering on our promise of a perfect every time experience, we're already making progress, taking the right steps to reach our full potential.”
