Business
AI Drive-Thru Ordering on the Rise Despite Challenges
Restaurants are increasingly looking to artificial intelligence (AI) to manage drive-thru orders and cut labor costs, but widespread adoption of the technology may still be years away. A survey by the National Restaurant Association reveals that 16% of restaurant operators plan to invest in AI, including voice recognition, this year. Major chains, with their larger budgets and capacity for scale, are leading the charge.
Generative AI, fueled by innovations like ChatGPT, is generating buzz in the restaurant industry, which historically has been slow to adopt new technologies. However, a recent setback occurred when McDonald’s ended its trial of Automated Order Taker technology, developed in partnership with IBM, signaling potential challenges ahead. Despite this, experts predict an increase in AI adoption in the coming months and years.
The Future of Voice Ordering
According to T.D. Cowen analyst Andrew Charles, the tipping point for voice ordering technology could be 12 to 18 months away. He anticipates that at least two of the top 25 restaurant chains will expand their trials significantly during this period. He likens this potential shift to the rapid adoption of third-party delivery services following McDonald’s partnership with Uber.
Pros and Cons of AI Ordering
Voice-ordering technology companies claim their AI systems do not replace jobs but rather reallocate workers to other tasks, enhancing operational efficiency. SoundHound, a leader in the field, asserts that its AI can handle over 90% of orders without human intervention, compared to an 80-85% accuracy rate for humans. Additionally, AI can accelerate drive-thru service by approximately 10% and consistently upsell to customers, increasing the average check size.
AI ordering systems could also cater to non-English speakers, offering significant growth opportunities domestically and internationally.
However, there are notable drawbacks. Inaccurate AI orders can cause delays and customer frustration, potentially harming restaurant reputations, as noted by Bank of America Securities analyst Sara Senatore. Furthermore, while younger customers may appreciate the efficiency and reduced human interaction, older generations, particularly baby boomers, often prefer fewer technological options in dining.
Technological Challenges
The technology is not without flaws. Restaurants with poor Wi-Fi need to upgrade their connections, and those near noisy highways may face additional challenges as voice-ordering technology struggles to understand customers. Complex menus can also exacerbate AI difficulties.
Given these issues, some experts, like former Panera Bread CEO Ron Shaich, suggest that restaurants should focus on enhancing the overall customer experience and wait for AI technology to mature.
In summary, while AI drive-thru ordering presents exciting possibilities for the restaurant industry, significant hurdles remain. It may take several years to fully address these challenges and realize the technology’s potential benefits.
Business
Iceland Demands Supermarket Rivals Stop Selling Prawn Rings
Supermarket chain Iceland has filed a trademark application for its well-known “King Prawn Rings,” urging rival supermarkets to stop selling similar products. Iceland, headquartered in Flintshire, claims it has faced increasing imitation since introducing its prawn rings in 1991.
In a bold open letter shared on social media platform X (formerly Twitter), Iceland called out major competitors Aldi, Tesco, Lidl, and Asda, accusing them of selling “copy crustaceans.” The letter cheekily asserted, “The King Prawn Ring is ours, and we won’t be letting you off the hook.”
Lidl humorously responded, “Here was us thinking it was a classic 1970s party dish.”
Iceland’s letter, signed by “Iceland Foods,” warned other retailers to cease selling prawn rings, especially ahead of Christmas. The chain emphasized its intent to pursue legal action if competitors don’t comply, declaring, “Our lawyers are more than ready to dive into legal waters.”
The prawn ring battle has sparked social media buzz, with consumers eagerly watching how rival supermarkets will respond to Iceland’s trademark claim.
Business
Boeing Workers Reject Latest Pay Offer Despite 30% Rise, Union Says
The union representing striking Boeing workers has stated that its members are not interested in the company’s latest pay proposal, which includes a 30% raise over four years. According to the International Association of Machinists and Aerospace Workers (IAM), a survey revealed overwhelming dissatisfaction with the offer, labeling it as “inadequate.”
This rejection follows Boeing’s new “best and final” offer, which also included a performance bonus reinstatement, improved retirement benefits, and a one-time $6,000 signing bonus. The company set a deadline for the deal to be ratified by union members by midnight on September 27.
However, IAM criticized Boeing for sending the offer directly to workers and the media without consulting union leaders and stated that the time frame was insufficient to organize a proper vote. Boeing has denied the union’s claims and said it would allow more time and provide support to facilitate the vote.
Business
China Unveils Bold Measures to Revive Economy Amid Growth Concerns
China’s central bank, the People’s Bank of China (PBOC), has launched a significant package of measures aimed at revitalizing its struggling economy. PBOC Governor Pan Gongsheng announced plans to lower borrowing costs and allow banks to expand lending to stimulate economic activity.
With recent economic data raising concerns that China may miss its 5% growth target this year, the central bank will cut the reserve requirement ratio (RRR)—the amount of cash banks must hold in reserve—by half a percentage point, releasing around 1 trillion yuan ($142 billion) into the economy. Additional cuts may follow later in the year.
The package also addresses China’s property market crisis by cutting interest rates for existing mortgages and reducing minimum down payments for all homes to 15%.
Asian stock markets responded positively to the news, seeing a boost after Mr. Pan’s announcement, which came during a rare joint press conference with officials from two other financial regulators.
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