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
Disneyland Increases Ticket Prices for Peak Days and Annual Passes
Disneyland has announced a price increase for tickets during its busiest days, effective immediately. While the entry-level ticket will remain at $104, as it has for the past six years, other tiers based on demand will see price hikes ranging from $7 to $12, marking an increase of about 6%. The price hikes affect tickets for high-demand periods such as holidays and school vacations.
In addition to single-day tickets, the cost of Disneyland’s Magic Key annual passes will rise by between $100 and $125, depending on the tier, with increases ranging from 6% to 20%. The new prices include $599 for the Imagine pass, $974 for the Enchant pass, $1,374 for the Believe pass, and $1,749 for the Inspire pass.
Despite the increases, Disneyland is offering discounted options for visitors during off-peak times. A $50 children’s ticket offer will be available starting on October 22 for use beginning January 7. Additionally, a promotion allows a family of four to visit the park for $308 in January or February—two $104 adult tickets and two $50 children’s tickets.
Jessica Good, a Disneyland Resort spokesperson, emphasized that Disney continues to provide a wide range of ticketing, dining, and accommodation options, along with promotional offers throughout the year, aiming to make the park accessible to as many families as possible.
The tiered ticket system, similar to pricing models in the airline and hotel industries, is designed to balance demand throughout the year. Tickets in the highest demand Tier 6, for holidays like Christmas and Halloween, will increase to $206 per ticket.
While the cost of Disney’s theme park experiences has drawn criticism from some consumers, the company maintains its commitment to offering budget-friendly options for guests who visit during less busy periods.
Business
Travelers Brace for Hurricane Milton: Airlines, Theme Parks, and Cruise Lines Adjust Plans
With Hurricane Milton rapidly approaching Florida’s west coast, travel plans across the region are being significantly disrupted. The Category 4 storm, carrying winds of up to 145 mph, has triggered widespread cancellations, route changes, and closures as airlines, theme parks, and cruise lines prepare for its anticipated landfall on Wednesday.
Florida Governor Ron DeSantis declared a state of emergency across more than 50 counties, with the National Oceanic and Atmospheric Administration (NOAA) warning that Hurricane Milton is expected to hit Florida’s west coast with dangerous force.
Airports are taking precautionary measures, with Tampa International Airport suspending operations early on Tuesday, stating that it will “reopen when safe to do so.” Orlando International Airport, a major hub, announced it will close by 8 a.m. on Wednesday. Southwest Airlines, which accounts for a significant portion of flights in and out of Orlando, has already canceled 402 flights for Wednesday. FlightAware reports that over 85% of flights at Orlando International Airport have been grounded for the day, with many more cancellations at Tampa and Southwest Florida International airports.
Theme parks are also responding to the storm. Busch Gardens Tampa will be closed from Tuesday through Thursday, while SeaWorld Orlando remains open for the time being but continues to monitor Hurricane Milton’s path closely.
Cruise lines have been proactive as well, with Carnival informing passengers that ports in Jacksonville, Tampa, and Miami are likely to close. As a result, several routes and destinations have been altered to steer clear of the storm’s impact.
As Hurricane Milton nears, travelers and local residents are urged to stay informed and adjust plans accordingly, with further disruptions expected in the coming days.
Business
States Sue TikTok, Alleging Impact on Teen Mental Health Crisis
A coalition of 14 U.S. states has filed lawsuits against TikTok, accusing the social media giant of exacerbating a mental health crisis among teenagers. The bipartisan group of attorneys general claims the platform’s addictive features target young users, misleading the public about the safety of prolonged use, and contributing to negative mental health outcomes.
In the lawsuit, filed in New York, the attorneys general argue that TikTok intentionally designed features that drive compulsive use, negatively affecting millions of teens. New York Attorney General Letitia James stated that TikTok’s influence has led to tragic incidents, including the death of a 15-year-old boy in Manhattan, who died while “subway surfing” after watching similar videos on TikTok.
James emphasized that many teenagers are struggling with increased anxiety, sadness, and depression, attributing some of these effects to the app’s alerts, disappearing videos, and beauty filters. These features, she said, encourage constant checking of the platform and contribute to issues surrounding body image.
TikTok, which is already grappling with legislation that could ban it from the U.S. unless its parent company, Bytedance, sells the app, called the lawsuit “disappointing.” The platform contends that it has introduced tools to limit screen time and content exposure, but the lawsuit claims these tools are ineffective.
In addition to the mental health accusations, the lawsuit also points to TikTok’s virtual currency as running an unlicensed money transmission business in Washington D.C. The plaintiffs seek financial penalties and a court order to halt TikTok’s practices that allegedly harm teenagers.
TikTok has responded by defending its efforts to protect young users, stating, “We strongly disagree with these claims,” and reaffirming their commitment to improve the platform.
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