Dive Brief:
- Wendy’s will accelerate the deployment of digital kiosks, digital menu boards and drive-thru voice artificial intelligence, President and CEO Kirk Tanner said during an earnings call last week.
- Last year, the company installed digital menu boards at over 300 company-owned and franchised locations, and installed the voice-enabled AI at roughly 100 restaurants, he said.
- From chatbots to underground robots and machine learning, Wendy’s has long tested technology intended to improve operations. It began trialing drive-thru AI in 2023 and opened up the pilot for franchisees last year.
Dive Insight:
Wendy’s invested over $53 million in its digital strategy last year. Its digital menu boards, AI voice and digital kiosks have already simplified ordering and freed up crew members, Tanner said.
In 2025, the chain will increase its capital expenditures to between $100 million to $110 million to invest in building new restaurants globally. It will add new technology to more restaurants “to enhance the customer experience, drive loyalty and increase efficiency,” CFO Ken Cook said.
Enhancements to its mobile app helped digital sales grow by nearly 40% year-over-year, and digital sales mix was up 130 basis points to 19% in the fourth quarter compared to the third quarter, Tanner said. Loyalty membership was also up 25% from a year ago, reaching 46 million members.
The chain’s digital strategy will pair with its 2025 initiatives to boost menu innovation, enhance value and drive loyalty.
“By bringing together our innovation, marketing and outstanding execution capabilities as part of our commitment to deliver a perfect every time customer experience, we are increasing operational intensity across every restaurant,” Tanner said. “This includes a framework of operating the one best way with clear standards, consistency and accountability.”
Wendy’s will invest in various field resources to further support franchisees, their teams and restaurants, he said, adding that this will help provide “exceptional experience for our customers and drive restaurant-level margins.”
More of the specifics behind the enhancement to field resources will be shared during a March 6 investor day, Tanner said.
