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Bread-bowl icon Panera tests AI drive-thrus as labor shortages weigh on fast food

Snacks / Monday, August 29, 2022

Smart soup... Panera’s serving up broccoli-cheddar bread bowls with a side of AI. Yesterday two Panera locations in upstate New York started testing an artificial-intelligence bot called "Tori," which takes drive-thru orders and interacts with customers.

  • The voice-order tech is from OpenCity, a startup last valued at $27M. Panera is assessing Tori's accuracy and ability to cut wait times.
  • If customers dig Tori, Panera could expand it to more restaurants. FYI: nearly half of its 2K locations have drive-thru lanes.
  • Tori makes moves: OpenCity said Tori’s being used in more than two dozen restaurants, including a Popeyes in Louisiana.

From Tori to taco elevators... Fast-foodies have invested heavily in drive-thru tech since the pandemic. While lockdowns are over, takeaway sales have stayed elevated: prepandemic, less than 70% of fast-food sales came from drive-thrus. Now it’s more than 90%.

  • Need for speed: Taco Bell opened a table-free restaurant last month with taco-delivering "vertical lifts." Chipotle’s adding more digital-order Chipotlanes, and McD's is working with IBM to automate drive-thrus.
  • Need for peeps: Food service and hospitality companies led July job gains as they scrambled to hire, but were still 1.2M positions short of prepandemic headcount.

Labor pains lead to robo gains... North American companies bought a record # of robots in the first half of this year to keep operations afloat. With nearly two roles open for every unemployed worker, total US labor costs surged a record 5% last quarter. While Panera locations aren't factories, it's hoping that robo drive-thrus will ease the labor crunch. If it’s successful, others could follow.

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