Are McDonald’s AI-Powered Drive-Thrus The Future?

Ah yes, the direction we’ve all known the world was headed in seems to accelerate upon us quicker each month. In the last quarter of 2021, McDonald’s decided to partner with IBM, by giving them access to their McD Tech Labs, in the hopes of creating a better AI-powered, automated drive-thru experience.

After some initial success over the summer, the goal in question is whether or not this is something that makes sense to expand. The original trial run was tested at just 10 locations in the Chicago area. McDonald’s currently operates 13,000+ locations in the US alone, so obviously this sample represents but a tiny fraction of the McD’s empire.

My initial thought when I first heard about this was, “As a customer, would I personally like this?” This AI drive-thru concept has my brain bouncing around a few ideas on whether or not this is a smart idea from both a business standpoint and also a customer experience perspective.

On the business front.

For McDonald’s, it seems this implementation of AI in the drive-thru would make sense. At a time when the hiring market remains quite turbulent, companies that utilize technological advantages can continue their productivity progress as well as create an edge over their competition. In this case, tech can help supplement the lack of employees where it may exist. One can imagine the cost savings implemented here.

Particularly in this pandemic, as employees both leave for other work opportunities, and unfortunately even become sick and need to take leave, one can envision AI as a great solution for both improving customer sales in relation to operations speed as well as improving employee safety by having less staff interaction between each other as well as customers. Win-win here. 

“Business owners across the industry say they're unable to find staff and in some cases even cite a lack of desire to work, while workers say they can demand better pay and benefits in the tight labor market.” (Business Insider)

A question companies must address in the future will be how to create new opportunities, as well as incentives, for workers as AI undoubtedly takes over various areas of operations. Perhaps pay increases will become more commonly injected into the equation. McDonald’s is headed in the right direction here. “The company says…the average wage for employees at company-owned restaurants will be $15 per hour by 2024.” (CNBC). Other companies like Starbucks are well known for providing excellent health benefits and education opportunities for its workers. Making positive strides is also Raising Cane’s. “The biggest pull that Raising Cane’s has is their opportunity for advancement. Workers can quickly move through the ranks to become a trainer or shift lead which means more money.” (foodfornet.com). If employees feel more encouraged and able to acquire additional skill sets, they can fill new roles within an organization, providing value to the company.

The initial McDonald’s reports came back that the AI voice recognition drive-thru got customers’ orders correct somewhere around the 85% mark (CNBC). So the thought now is, what happens to the 15% of orders that don’t suffice? How much does this cost McDonald’s in terms of lost profit? Does it offset the savings of having fewer workers? Do customers get angry and go elsewhere? After all, in the age of fast food, there are most likely other burger places nearby.

Another potential negative McDonald’s has to consider is the price it may cost to expand this technology. It could add up to quite a pretty penny in order to roll out the technology to its thousands upon thousands of locations. And of course, let us remember that tech is constantly evolving and can break along the way, so what would this cost in terms of maintenance and upkeep? 

"Now there's a big leap from going to 10 restaurants in Chicago to 14,000 restaurants across the U.S., with an infinite number of promo permutations, menu permutations, dialect permutations, weather — and on and on and on.” (McDonald’s CEO Chris Kempczinski via Business Insider)

From the customer perspective.

I can think of both positives and negatives of this service from this angle as well. On the positive front, I think about how long drive-thru lines have been over the past 2 years. Driving around during dinner time, you’ll easily see the wildly long lines of vehicles at every single fast food restaurant you pass, some stretching all the way into the highway, into the path of oncoming traffic!

I myself have waited in line at a Starbucks drive-thru, realized I didn’t have a great deal of time to sit there, then drove off, ultimately making myself a coffee at home. Due to AI speed enhancements at a drive-thru, I can imagine a world where several lanes exist instead of the traditional 1 or 2. Think of a system like your local bank where there are sometimes 4 or even 5 lanes one can drive up to for service. Think how effective this could be at a drive-thru restaurant if the majority of the experience was automated and, if for the most part, accurately executed. One could get in and out quickly and on with his / her day? How grand! After all, isn’t that what fast food is all about?

Perhaps if customers were given a choice of what kind of ordering experience they could receive upon driving up, that would be another great perk. I think about my local CVS which has 2 in-person checkout counters and 4 self-service checkout machines. 99% of the time, I personally opt for the self-service option because I usually have the items I need and just want to scan them and exit the store. One could envision a similar experience at a drive-thru establishment.

Throughout the pandemic, many companies have created alternative options to satisfy their customers. Several big-box stores like Whole Foods and Target have done exceptionally well at mastering the curbside pickup option. Many customers enjoy this new way to shop. The more customers you can make happy, the better.

A few other potential negatives here from the customer angle:

What if I am the kind of person who desires to hear an actual human’s voice on the other side of that speaker instead of a robot? Can I have that interaction if I want? (Chris Matyszczyk at ZDNet isn’t sold just yet)

What if I am a less tech-savvy individual and have trouble using the automated system? The fact that McDonald’s serves millions of customers a year means that not everyone pulling up to the drive-thru will be monthly subscribers to the latest tech magazine. In short, McDonald’s customer base is about as broad as any out there.

“Kempczinski said the restaurants using the voice-ordering technology are seeing about 85% order accuracy. Only about a fifth of orders need to be a [sic] taken by a human at those locations, he said, speaking at Alliance Bernstein’s Strategic Decisions conference.” (CNBC)

What if I am one of those customers in the 15% range, whose order isn’t done correctly and must be elevated to a human and explained? Now it actually takes even more time to complete my order, fueling my frustration.

The future will lead the way.

Taking all these factors into account, McDonald’s and other businesses will have to decide if the pros outweigh the cons, both from a revenue standpoint, as well as the customer experience perspective. With this technological drive-thru idea being, shall we say, relatively newish, only time will tell if it makes sense to incorporate this AI service on a larger scale. Like so many things in customer service, it’s going to come down to - does the customer like this, do they want it, do they feel it improves their overall experience? The answer to this question will most likely drive if, and how, McDonald’s and other drive-thru businesses proceed into the future.