rewrite this title AI Is Coming Fast for Fast Food

Most ancient Romans didn’t have functional kitchens.

That’s because ordinary Romans, known as plebs, usually lived in apartments.

As you can imagine, the risk of fire back then was too great for plebs to have much more than a small brazier in their quarters. So instead of cooking, they went to places called thermpolia to order common food from a counter.

Thus, fast food was born.

Over the following centuries, fast food vendors have sought out the latest technology to help them produce food cheaper and faster.

From advances in kitchen technology like refrigeration, to revolutionary ideas like the Automat, which dispensed pre-prepared offerings to customers at affordable prices…

To brothers Richard and Maurice McDonald, who helped invent new products and processes to speed up making hamburgers…

Source: Wikicommons

Technology advances and fast food have always gone hand in hand.

But today a shocking technology shift is happening in this sector. AI, automation and data-driven decision-making are quickly transforming the fast food industry.

And this time, it’s not just about making burgers faster.

It’s about using technology to make every part of the fast food experience more efficient, more profitable and even more personalized.

AI-Powered Happy Meals

If you’ve recently felt like a drive-thru order taker knew exactly what you wanted before you even said it, you might not be imagining things.

Major fast food chains, including McDonald’s and Taco Bell, are using AI-powered systems to predict and suggest orders.

These systems analyze the time of day, the weather and even what you’ve ordered before to recommend items you’re most likely to buy.

For example, McDonald’s has been rolling out AI-driven menu boards that change in real time based on customer demand.

If it’s hot outside, you might see more cold drinks and ice cream promoted.

If it’s the morning rush, breakfast combos might be shown first.

The goal here is to gently push you toward choices that increase sales and keep lines moving.

This might seem a little sneaky, but it’s not nearly as controversial as another use of AI the fast food industry is considering.

I’m talking about dynamic pricing.

Just like airlines and ride-sharing apps adjust fares based on peak times, fast food chains are experimenting with prices that can change in real time…

So the cost of your meal could vary based on factors like location, demand or your past spending habits.

Imagine pulling up to a drive-thru and seeing a different price than the car in front of you.

If you’re convinced that could never happen, I have bad news for you…

Because AI-driven pricing is already being tested in some markets.

Companies argue that this allows them to optimize profits while still offering deals to customers who are more price-sensitive.

Personally, I believe the ethics of this are up for debate.

But what’s not up for debate is how fast things are changing in fast food kitchens around the country.

Robot Kitchens

Restaurant owners today are dealing with worker shortages and rising wages. That’s one reason why we’re seeing self-ordering kiosks showing up everywhere. And as we’ve discussed before, drone delivery is increasing as well.

These new technologies can help owners save money.

They can also make repetitive tasks easier, which is why we’re seeing a big technology shift in the kitchen.

In some locations, human cooks are either being assisted or outright replaced by robots.

Companies like Miso Robotics have developed kitchen assistants like Flippy, a robotic arm that can flip burgers and fry foods with remarkable precision.

Source: Miso Robotics

Naturally, Flippy doesn’t get tired and ensures every order is the same.

Chipotle (NYSE: CMG) is also using a lot of automation. This year, it introduced a robot that can peel, pit and chop avocados.

And the investment seems to be working. Visits at one California location using the machine were 10% higher than the average Chipotle in the area.

According to Placer.ai, customers at that location got their food faster, with 43.9% of visits lasting 10 minutes or less compared with 37.5% at other stores in the area.

Other chains are experimenting with fully automated kitchens.

Sweetgreen (NYSE: SG) acquired Spyce, a Boston-based restaurant, that uses robotic chefs to prepare meals from start to finish, cutting labor costs and speeding up service.

And in 2023 Sweetgreen opened Infinite Kitchen, the company’s first robotic restaurant, in Naperville, IL.

The rest of the fast food industry is watching closely, as automation could mean they need fewer human workers while keeping service high-speed and high-volume

Here’s My Take

It’s clear that the fast food experience is becoming more high-tech than ever.

AI is handling orders. Robots are cooking meals. Data is deciding what you see on the menu.

These changes promise greater efficiency and cost savings. They could also lead to better food quality.

But more than that, they show you how advances in technology remain consistent with our most basic desires…

Like being able to grab a quick, tasty meal whenever we’re hungry.

Just don’t be shocked if Flippy isn’t as fond of french fries as you are.

Regards,

Ian KingChief Strategist, Banyan Hill Publishing