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Okay — it’s not exactly a milkshake.
Wendy’s signature Frosty is a unique treat concocted by founder Dave Thomas himself.
The Frosty is a little bit thicker than your average milkshake, with a hint of malty chocolate flavor that hits the spot for just about everyone.
It’s the kind of dessert that’s worth the trip for most Americans (whether you dip your fries in your frosty or not).
Signature menu items like the Frosty can be the key to keeping up with larger competitors like McDonald’s, which has more than twice as many locations as Wendy’s.
So Wendy’s relies pretty heavily on its trusty $1 Frosty promotions to draw massive crowds, often propelled by word-of-mouth and viral social media content.
With that sudden influx of demand comes a massive strain on the overall supply chain.
And unexpected shortages can quickly turn a viral marketing success into a PR nightmare.
That’s why Wendy’s is adding a new ingredient to the mix — artificial intelligence…
“Behind the Scenes” AI Upgrades
If you’ve been keeping up with my Banyan Edge articles over the last few months, then you’ll know I’m often focused on the future of AI and the economy.
We frequently focus on the long-term projections of AI, the fact that it will ultimately add $150 trillion to the global economy.
But in many ways, that future is already happening right now.
It’s happening “behind the scenes” with thousands of businesses across the board upgrading their automation.
For Wendy’s supply chain co-op, that meant partnering with up-and-coming AI firm Palantir (NYSE:PLTR) to optimize operations during its ongoing series of $1 Frosty promotions.
Palantir’s AI scoured the mountains of invoices and ordering data readily on hand, discovering critical insights and making key suggestions that were “so much better” than usual methods.
An AI-optimized supply chain provides critical advantage at a time when the restaurant industry is struggling with rising costs for both food and labor.
According to the leader of Wendy’s supply chain co-op:
Three or four years from now, if you’re not doing this, you’ll be at a distinct disadvantage. This is something that, as an industry, will change the way we work.
AI isn’t just changing the way we eat, either.
The Tampa Bay Buccaneers recently partnered with a company called Satisfi Labs to optimize the stadium experience during football games.
Fans can access an AI chat to view stats, navigate the stadium, and even purchase tickets—all through a virtual assistant.
The Next Phase of “Closed AI”
ChatGPT became a runaway success because it puts the power of AI right there on your screen … texting back and forth in real time.
The world had never seen anything like a Large Language Model on that scale.
And after just a few interactions, you couldn’t deny its potential. It’s staring you in the face.
Future AI breakthroughs, which may be even more impactful and more profitable, won’t likely be so obvious. But companies are already racing to implement cost-saving AI behind the scenes.
Indeed — one of the AI mega trend’s most powerful up-and-comers focuses exclusively on “Closed AI” systems trusted by government agencies and top Fortune 500 companies.
To good profits,
Adam O’Dell
Chief Investment Strategist,
Money & Markets
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