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The Spoon

Daily news and analysis about the food tech revolution

Taco Bell

Week in Restaurants: A Classic SoCal Diner Goes Off-Premises, Dom’s Still Checking Pizzas

Why are you reading this and not grilling up a delicious Beyond Burger this holiday weekend?

As long as you’re here, let’s take a quick look at the week in restaurants. And what a week it was. With states halting the reopening of dining rooms, it’s clear the effects of the pandemic are far from over in the restaurant industry. Yet business keeps on, and there were a number of noteworthy developments from this week around ghost kitchens, AI pizza checkers, and the greatest diner of all time.

New NORMS

NORMS, a much-loved diner chain in Southern California, this week debuted NORMS Junior, a new store prototype geared towards to-go orders. The company says NORMS Junior will be the model for future NORMS locations — no surprise, given the pandemic’s effect on dining rooms (see above). NRN has some great slides of what this new NORMS will look like.

Next Stop for Wingstop: Ghost Kitchens

Also riding the off-premises wave strong is fast-casual chain Wingstop, who this week opened its first ghost kitchen in its hometown of Dallas, TX. The new facility is less than 400 square feet and is for delivery-only orders. Wingstop says one of its goals is to digitize 100 percent of its transactions. A delivery-only ghost kitchen will aid in that.

Taco Bell Redoes Digital Rewards

Simply dubbed Taco Bell Rewards, the new app-based loyalty program comes five years after the band’s original rewards program. Apparently the idea of a new loyalty app was so popular it sent Taco Bell traffic through the roof and temporarily crashed the site. To access the new rewards program, customers can download the latest version of the Taco Bell app, which includes a beta version of Taco Bell Rewards.

AI Will Continue Checking Your Pizzas

Domino’s and Dragontail Systems said this week they will continue their partnership, which puts Dragontail’s AI tech in Domino’s restaurants to ensure quality. The smart scanner uses advanced machine learning, artificial intelligence, and sensor technology to check the quality of pies before the go out for delivery. (Dragontail’s tech can also be used to ensure proper sanitization in restaurants.) The continuation of the partnership means more of these pizza scanners across more Domino’s locations. So far, the partnership between the two companies has been limited to Domino’s locations Australia. They have not yet said if this extended partnership will bring the technology to stores elsewhere in the world.

Sweetgreen, Taco Bell Using Their Off-Premises Muscle to Feed Hospital Workers Fighting COVID-19

Sweetgreen today announced the launch of its Sweetgreen Impact Outpost Fund, a partnership with José Andrés’ World Kitchen Center (WCK) that aims to get more food to front-line medical workers in hospitals, according to a company press release. 

The new fund comes just on the heels of Sweetgreen’s Impact Outpost program, which launched two weeks ago to get free Sweetgreen meals to hospital workers and medical personnel. Outpost is Sweetgreen’s delivery-catering hybrid service that operates portable drop-off sites for deliveries. Up to now, Outpost has been seen more commonly in corporate offices.

The Impact Outpost program places these drop-off stations in hospitals. After launching the program, Sweetgreen received a ton of feedback from both large corporations and individual customers wanting to support it through donations. The new partnership with Andrés’ non-profit is a way to provide this as well as increase the number of hospitals receiving meals from Sweetgreen.

From the press release:

“Through the fund, corporations, sponsors and customers are able to join sweetgreen and WCK’s efforts to feed more front-line medical personnel working in hospitals, while also helping fund new Outposts in relief sites, including schools, senior centers and in vulnerable and high-risk communities.”

You can donate directly to on the fund’s website, and even make a donation in memory or honor of someone. The site notes that this fund will remain open “for as long as needed,” and that right now, the goal is to deliver at least 100,000 meals to workers. 

Sweetgreen is one of several notable restaurant brands now using their established off-premises platforms to deliver food to frontline workers. Also this week, Just Salad announced a partnership with Mount Sinai to deliver 10,000 meals per week across seven hospitals in NYC boroughs Manhattan, Brooklyn, and Queens.

Taco Bell has turned its Taco Trucks, which are food truck versions of the QSR, into mobile commissary kitchens that bring food to frontline workers. “While most of our restaurants are operating only through the drive-thru, this leaves some truck and ambulance drivers unable to quickly order from us,” company CEO Mark King said in a letter. He added that the chain is working with its franchisees to make this service available “where possible.”

Finally, Chipotle, another QSR with a booming digital business, is giving away free burrito boxes to healthcare facilities. The boxes come with 25–50 burritos, depending on how many are needed, and will be delivered between April 6 and April 10. DoorDash, with whom Chipotle has an ongoing delivery partnership, will handle the last-mile fulfillment of the orders.

There are bound to be plenty more restaurant brands using their existing digital and delivery strategies to more easily and efficiently get meals to workers while the pandemic lasts. And judging from the latest news, that could be a while. Stay tuned.

Newsletter: COVID-19 Could Help Us Build a Better Restaurant

Welcome to the first-ever Weekly Spoon newsletter that’s entirely focused on restaurant innovation. That we chose to launch this just as a pandemic is sweeping across the globe is entirely intentional. Of all the food tech sectors out there, none has been hit so hard or will change — forever — as drastically as the restaurant biz.

With that in mind, let’s kick this thing off by not rehashing the gloomy stuff. Instead, let’s highlight some ways in which the current restaurant business meltdown is spurring a ton of initiatives that could make a better overall industry in the long term — if we let it.

The Virtual Tip Jar Will Stick Around

As anyone whose ever waited tables, tended bar, or delivered pizzas knows, tips are an important portion of workers’ incomes. With most bars and dining rooms closed right now, an astounding number of what are basically virtual tip jars have popped up online. We first got wind of this last week, when we came across a site called chatt.us that lets at-home drinkers leave tips for service workers in Chattanooga, Tenn. via Venmo or CashApp. 

A little more digging uncovered more of these virtual tip jars in, well, pretty much every state from Maryland to Idaho. One site in particular, serviceindustry.tips, lets you choose specific cities from a list and direct your funds to workers in that area from a very user-friendly web interface. Others are simple spreadsheet interfaces, though no less popular from the number of entries on some of them.

While these virtual tip jars can’t make up for the lost wages and job layoffs many restaurant workers now face, they could at least provide some aid to those currently struggling.

They could also be a valuable tool for the restaurant industry even when dining rooms re-open. As one restaurant owner explained to me recently, in-house staff prepping the off-premises orders don’t see any of the tips left through third-party ordering platforms. A virtual tip jar could be a way for customers who wanted to hand over a little extra to tip those employees for their work. There are also well-documented issues around tipping delivery drivers in general. Since fewer folks seem to carry cash these days, a virtual tip jar could be a way to bypass that aspect of the platform, thereby making sure it’s the worker who gets the tip — not the tech companies.

Ditto for Contactless Delivery and Payments

Three months ago “contactless delivery” wasn’t even a phrase, at least not in the vernacular sense. In an effort to stem the spread of coronavirus worldwide, what started in China (see above image, courtesy of Yum China) has now quickly caught on. All the major delivery platforms as well as grocery sites like Instacart and individual restaurant chains now either use contactless delivery as the default option or make it clearly available through their apps.

I doubt we’ll revert back to the old method once this horror show is over.

At their most basic, contactless delivery methods as well as contactless payments are just more hygienic. Fewer germs can spread when cash and cards aren’t being handed back and forth over a counter, or when customers and their delivery couriers stand a certain distance apart during a drop-off. I doubt I’m the only person who’s ever ordered delivery while having bronchitis. Contactless delivery would go far in protecting workers — many of whom do not get paid sick leave — from illnesses their customers might be carrying while they’re stuck at home. Vice versa, too.

And if this look into China’s (sort of) newly reopened restaurant scene is anything for the rest of the world to go by, mobile payments will see a boost, too. More customers will be using apps like Apple Pay, CashApp, and Google Pay to avoid constantly handing over a credit card.

Simpler Menus Will Beget Better Service

“Pare down your menu” is a directive I’ve been hearing a lot as restaurants quickly pivot to serving customers through takeout and delivery channels. That means offering only the items that are easy to produce, will travel well, and are ones that customers actually want. 

That’s not breakfast, at least not right now. In a statement this week, McDonald’s announced it was temporarily pulling breakfast items from its menu and will focus on serving its most popular items. Taco Bell also nixed breakfast items for now. More chains are likely to follow.

Of course, these moves are in response to the potentially billions of dollars the restaurant industry will lose over the next few months. I suspect, however, that slimmed down menus could actually improve certain aspects of the restaurant industry, particularly where tech is concerned. Have you ever tried to navigate a Taco Bell self-service kiosk? Finding Waldo inside Google Maps was an arguably easier task.

Smaller menus could also speed up times in the drive-thru, improve AI-powered upsell recommendations, and use fewer ingredients overall, thereby reducing food waste.

In no way am I suggesting that menus need to look like this one from 1973. And who knows? Breakfast and Monster Tacos might go back on the menu at some point. But maybe this strange, unsettling shift in which we now find ourselves can show us that simpler menus leads to better experiences for everyone involved.

Keep on truckin’,

Jenn

Taco Bell to Give Its Stores a ‘Tech-Forward’ Facelift, Launches Veggie Mode for Kiosks

Like many quick-service and fast-casual chains these days, Taco Bell is responding to the demand for digital and off-premises orders in part by revamping its physical locations. Case in point: Today, the chain unveiled plans to build out new stores under its Cantina concept as well as convert some traditional Taco Bell locations into Cantinas. 

The Cantina is Taco Bell’s somewhat more upscale concept the chain has opened around urban areas over the last few years. To be clear: the Cantina format is still quick-service, just a higher-end version that often features alcohol and includes new technologies like self-order kiosks and digital menu boards.

The company said today it will open its “most technology-forward Taco Bell”  in fall of 2020 in NYC’s Times Square. The press release is vague on details, however, stating only that “the upcoming New York Cantina will utilize new digital features that not only allows for a smooth ordering experience but showcases digital moments throughout the restaurant like never before.”

I’m intrigued as to whether “technology-forward” means the new Times Square store will simply have more of the brand’s existing restaurant tech or if Taco Bell has something up its sleeve it hasn’t yet revealed to the general public. After all, in-store kiosks, mobile order capabilities, pickup shelves, and digital boards are fast becoming the standard not just in Taco Bell locations but across most major QSRs.

Whatever it means, Taco Bell is clearly trying to go after a new audience with the store format that in some ways feels like the Sweetgreen of traditional fast food.

Taco Bell will also convert three of its traditional restaurants into Cantinas to test the concept in more suburban areas. After a period of evaluation, Taco Bell will expand the Cantina concept to other traditional locations.  

Taco Bell has in the meantime also announced a new feature for its self-order kiosks called Veggie Mode. According to an email sent to The Spoon, the function is essentially a way for users to filter menu options so they don’t see any meat-based meals among their selections. Users simply slide a button on the kiosk’s touchscreen to activate Veggie Mode. 

The new features is part of Taco Bell’s ongoing push to appeal to vegetarians or those simply wanting to cut down on the amount of meat they consume. The Veggie Mode feature will be available starting March 12 at Taco Bell kiosks across the U.S., and presumably included in the ones that launch with the new and revamped stores the chain has planned for 2020.

Food Tech News: Taco Bell Goes Plant-Based, plus GIF Peanut Butter

Greetings from New York City, where we’re recovering from the whirlwind of Customize, our first-ever food personalization summit. We’ll have videos of our sessions — including a case study with Kroger Health and a deep-dive into microbiome-based nutrition — coming your way over the next few days.

But until then, we’ve rounded up a few cool food tech bits for your perusing pleasure. This week we’ve got stories on Taco Bell’s plant-based plans, a new device to detect deadly mushroom toxins, and a GIF-based campaign from J.M. Smucker. Enjoy!

Peanut butter pronunciation: Jif vs. GIF
J.M. Smucker has teamed up with GIF search engine GIPHY to create a co-promotion around, of all things, peanut butter. According to the computer scientist who devoped it, the GIF is pronounced with a soft G, like the popular peanut butter brand. However, to assert its name independence and stir up some media publicity, this week J.M. Smucker sold 2,000 peanut butter jars with a label that reads “GIF,” with an implied hard “g” sound (h/t Wall Street Journal). To no one’s surprise, peanut butter-y gifs (jifs?) ensueD.

Taco Bell will add plant-based meat by 2020
Looks like Taco Bell will soon live mas plant-based. This week, the QSRs CEO Mark King told Nation’s Restaurant News that the fast-food chain would “definitely do something with plant-based protein and probably by the end of the year.” Which brand will grace its tacos and chalupas? TBD — King said that the company has met with both Beyond Meat and Impossible Foods but hasn’t declared a partner yet.

New device can detect deadly mushroom toxins
Scientists at the U.S. Department of Agriculture (USDA) have developed a test strip that can determine whether or not a wild mushroom is poisonous, according to The Counter. Within 10 minutes of exposure to the mushroom (or urine of someone who has consumed the fungi), the strip can detect if dangerous amatoxins are present. Scientists hope that this strip can help foragers (and their dogs) avoid poisoning from deadly species like so-called “death caps” and “destroying angels.”

Taco Bell Outlines Plans to Make Consumer-facing Packaging Sustainable by 2025

Taco Bell announced this week its goal to make all consumer-facing packaging — cups, wrappers, etc. — recyclable, compostable, or reusable by 2025, according to a press release. 

This pledge applies to all materials that come into contact with consumers when they order food, from taco wrappers to cups to those $5 Cravings boxes. While the press release doesn’t delve too far into what materials might be used to make some of these items more sustainable, it does note that PFAS, Phthalates and BPA — chemicals associated with health problems like cancer and thyroid disease — will be removed from all consumer-facing packaging. 

The chain will also install recycling and composting bins in locations “where infrastructure permits,” meaning any city that supports those waste streams. 

In an interview with Fast Company, Missy Schaaphok, Taco Bell’s global nutrition and sustainability manager, offered some hints as to what future packaging might look like. That includes things like food baskets for dine-in customers and compostable or paper straws “in places that legally require them.”

Taco Bell already has some sustainability initiatives in place. It introduced recyclable cups and lids for cold drinks in in early 2019, and as Schaaphok told Fast Company, “a good portion of [the chain’s] packaging today is already recyclable or compostable.”

That’s all well and good, but a major challenge for QSRs nowadays is convincing customers to dispose of recyclable and compostable materials properly instead of just chucking them in the garbage. In some states, this will be easier. California, for example, passed AB 827 last year, a law that requires limited-service restaurants to make recycling and composting bins available, as well as provide signage to guide customers as to which items go in which bins.

Getting customers to actually recycle and compost their waste is not a Taco Bell-specific issue. As The Spoon contributor Stephen J. Bronner pointed out in a post this week, McDonald’s, Starbucks, Subway, and others have all pledged sustainability initiatives. Many of them are around packaging. All of them will have to contend with how to best communicate the importance of sustainability to the consumer.

For QSRs, who have always relied heavily on disposable packaging for both in-house and to-go orders, making the “reduce, reuse, recycle” concept easy for customers will become paramount in terms of actually keeping trash out of the landfills. 

A Snapshot of the 6 Biggest Fast Food Companies’ Sustainability Pledges

Environmental issues are no longer an invisible threat. With temperatures warming, oceans are heating up and extreme weather events such as hurricanes and forest fires, as we’re currently seeing in Australia, are happening more frequently.

There’s only so much individuals can do to lessen our impact on the warming planet, including flying and driving less and cutting back on meat. It’s on governments and businesses, especially corporations, to stave off catastrophe.

As we start off a new decade, let’s take a look at the sustainability pledges of the top fast food companies by revenues. As emissions that result from meat and dairy production are on track to contribute 70 percent of the total allowable greenhouse gas emissions by 2050, the BBC reports, fast food chains’ decisions have a lot of impact on the planet, although most pledges have centered around packaging. As some of the largest brands on the planet, these moves will not only cut back on climate change causing emissions and pollution, but provide an example to other businesses.

1. McDonald’s

The world’s biggest restaurant company in 2018 was the first fast food company to commit to sustainability. McDonald’s pledged that by 2025, “100 percent of McDonald’s guest packaging will come from renewable, recycled, or certified sources,” and also “to recycle guest packaging in 100 percent of McDonald’s restaurants.” For this year, it also set a goal that “100 percent of fiber-based packaging will come from recycled or certified sources where no deforestation occurs.” The company has also invested in a wind farm and a solar farm that it said will produce “more than 2,500 McDonald’s restaurants-worth of electricity.” As far as plant-based options, the Golden Arches is expanding its Beyond Meat test in Canada.

2. Starbucks

According to the coffee giant, “an estimated 600 billion paper and plastic cups are distributed globally,” and Starbucks accounts for an estimated 1 percent of that total. It has set a goal to “double the recycled content, recyclability and compostability, and reusability of our cups and packaging by 2022.” It plans to phase out straws this year. (A small competitor of Starbucks, Blue Bottle, plans to eliminate disposable cups entirely.) Starbucks, which said it has invested in renewable energy, has also set a goal to design, build and operate 10,000 “Greener Stores” globally by 2025. Starbucks offers several plant-based milks, and is expanding its lineup of non-dairy drinks.

3. Subway

The sandwich company hasn’t made any specific pledges, and pins a lot of the responsibility of energy conservation on its franchise operators. Subway offers a meatless Beyond Meat meatball sub. The company says its paper products, including towels, tissues and napkins, are made from 100 percent recycled material. As for the rest of its materials, including cups, wraps, bowls and lids, Subway makes no further commitments to make them more sustainable.

4. Chick-fil-a

The popular chicken restaurant that closes on Sundays also hasn’t issued any major sustainability pledges. The company said last year it is “thoughtfully searching for sustainable design solutions that are recyclable, compostable or contain recycled content — starting with new bowls” made of recyclable PET plastic. Chick-fil-a has committed to reducing construction waste for its new locations. The chain offers no plant-based options.

5. Taco Bell

The Mexican-inspired food chain is the latest to issue a big sustainability pledge. It has committed to “making all consumer-facing packaging recyclable, compostable or reusable by 2025 worldwide,” as well as adding recycling and/or composting bins to all restaurants, “where infrastructure permits.” Last year, it committed to more sustainable beef. Taco Bell has long featured vegetarian and vegan options, and recently made them more prominent on its menu.

6. Burger King

The other burger chain also hasn’t set any firm sustainability commitments for the decade. Rather, it said it will “continuously review our policies on animal welfare, sourcing and environmental impact to ensure that we remain good corporate citizens in the communities we serve.” The company, responding to a Change.org petition, said it will stop giving out plastic toys, but only in the U.K. At least you can get the Impossible Whopper at every U.S. store.

Of course, the companies who did make pledges are not beholden to them. It’s up to investors and consumers to hold each company responsible to do their part to reducing their contributions to climate change.

If any company updates their pledges, we will revisit and update this article.

Taco Bell Promotes More Menu Personalization With Certona Partnership

Taco Bell announced a partnership today with tech company Certona to use the latter’s platform to improve personalization for Taco Bell customers. Registered users of Taco Bell’s mobile app will be able to access more personalized recommendations and offers when ordering, according to the press announcement. 

Using Certona’s AI-powered “personalization suite,” Taco Bell will be able to pull data on things like a customer’s past orders, dietary preferences and favorite items as well as outside factors like weather and a user’s location. It can then use that information to make more relevant menu recommendations and upsell suggestions. 

The idea is to make it easier for customers to re-order favorites and also find new items that match their dietary preferences and restrictions. 

It’s also a way for Taco Bell to drive more orders through its mobile app and increase its overall digital business — a must for QSR chains in today’s increasingly tech-forward industry. For Taco Bell, the Certona partnership will likely improve the overall user experience for pick-up orders, where a customer orders via the app then collects the food themselves. 

Delivery is another story. Right now, Taco Bell customers can only order food for delivery via Grubhub, which means going into the third-party delivery service’s app and using their technology — not Taco Bell’s or Certona’s. That would seemingly limit the number of digital users Taco Bell can reach with the Certona integration. Though for all we know, the chain may have plans up its sleeve to eventually roll out a hybrid delivery strategy, as other fast food chains have done recently.

Taco Bell said nil about its delivery strategy in today’s press release. However, a hybrid strategy that makes it easier for registered Taco Bell users to access delivery — and therefore better personalization through Certona’s technology — from within Taco Bell’s own digital properties.

Regardless of whether Taco Bell pursues that strategy, today’s news certainly underscores the increasingly important role personalization plays when it comes to restaurant menus both off-premises and in the dining room. McDonald’s sent that trend mainstream last year when it acquired AI tech company Dynamic Yield to make its drive-thru menus more “Netflix-y.” Others have followed, from Starbucks to Chili’s, which announced earlier today a partnership with Presto to bring personalization right to customers’ tables.

Want more info on food personalization? Join us in NYC for The Spoon’s first-ever Customize event, taking place on February 27, 2020.

Taco Bell in China Debuts Plant-based OmniPork Crunchy Taco for Chinese Palates

Today Taco Bell launched a limited edition taco made with plant-based Omnipork in all Shanghai locations. Called the OmniPork Crunchy Taco, the offering will feature OmniPork’s meat-free ground pork cooked with spicy Yu Xiang sauce and lettuce. The fast-food chain will sell 6,000 of these tacos, priced at RMB 25 ($3.58 USD) each, starting today until they run out.

For those who don’t know, OmniPork is the first product from Green Monday, the Hong Kong-based group of restaurants and shops focused on promoting vegan dining in Asia. Green Monday founder David Yeung developed OmniPork, a ground pork substitute made from plants, specifically to appeal to Asian audiences who eat pork far more than, say, beef or chicken.

OmniPork is already sold in Hong Kong, Singapore, Macau and Thailand. It also made its debut in mainland China last month through online retailer Tmall. When announcing the news, Yeung said that OmniPork would be rolling out at over 180 restaurants in Shanghai and Beijing over the next two months. Clearly at least a few of those spots are Taco Bells.

Taco Bell is the first fast-food venue to sell OmniPork. It may seem ironic that the first QSR partner for a company focused on Asian palates is one that serves Tex-Mex food. However, Chinese consumers have taken to the fast-food chain since it returned to the country after an almost ten-year hiatus. The OmniPork Crunchy Taco is also specifically developed with Chinese flavors and uses plant-based pork instead of beef, as a nod to China’s most popular meat.

The Taco Bell partnership could be just the beginning for OmniPork’s foray into fast food. “We are confident that this special promotional launch is the beginning of a long partnership between the Green Monday group with Taco Bell as well as other brands under the Yum China portfolio,” stated Yeung in a press release.

Considering that the Yum China portfolio also includes KFC, Pizza Hut, and others, if the OmniPork Crunchy Taco has a favorable debut I bet we’ll be seeing OmniPork pop up in a lot more fast-food restaurants in China very soon.

Drive-Thrus Are Getting Slower. Can Tech Change That?

Wait times in the drive-thru lines are getting slower, according to QSR’s annual Drive-Thru Study, which launched this week and says drive-thru speed of service in 2019 was 20 seconds longer than in 2018.

The study actually covers a number of different areas of drive-thru performance, from customer service to order accuracy to which chains are installing digital menu boards. But the continued lag in speed of service stuck out this year.

In 2019, the average time a customer spent in the drive-thru — from speaker to order window — was 255 seconds. To put that number in context, the average time from speaker to order window in 1999 was roughly 181 seconds, according to data from previous QSR Drive-Thru studies. That number dipped up and down over the next decade before climbing to 226.30 seconds in 2016. It’s gone steadily upward ever since.

What’s with the wait?

One reason is menus. The QSR 2019 study notes that “more complex menus” contributed to slowdown in order accuracy, which fell just over 5 percentage points compared to 2018. As the study says, “more intricate menus touted by brands like Taco Bell and Arby’s proved to be a stiffer challenge for employees working to deliver complicated orders at top drive-thru speed.”

Along with those larger menus come more complicated food items, like Taco Bell’s now-retired XXL Grilled Stuft Burrito, the making of which adds more time to the drive-thru process. Even a latte, which isn’t an inherently complicated drink, takes more seconds to make than pouring a regular cup of coffee. Some chains brands have gotten hip to this problem and trimmed down their bloated menus. Even so, it ain’t 1985, when you could count McDonald’s burger offerings on one hand, and we’re not likely to return to that level of simplicity.

Mobile orders also contributed to the slowdown in drive-thru times, and with “lanes possibly getting more crowded with not only drive-thru customers but also those picking up mobile orders, it’s going to be difficult for brands to shave off seconds moving forward.”

Some are trying to knock out those extra seconds, most notably Dunkin’, which started building stores with dedicated drive-thru lanes for mobile-order customers in 2018. Fellow donut-peddler Krispy Kreme is doing the same as it revamps its locations for the digital age. In Australia, KFC is piloting a drive-thru-only store heavily focused on digital transactions and testing out new concepts to speed up wait times.

But mobile orders aren’t going away, and, as I mentioned earlier, menus aren’t about to get smaller, so what’s a restaurant chain to do?

Implement AI.

McDonald’s made that much clear when it acquired Dynamic Yield in March and subsequently rolled out the latter’s AI tech to hundreds of locations. Right now, that particular implementation of the tech is aimed at things like order accuracy and quickly upselling items to customers. Where it could make a massive impact, though, is in making restaurants more predictive.

Dynamic Yield-enabled menu displays at McDonald’s drive-thrus can show customers food based on data like the time of day, the weather, and trending menu items. Narrowing down someone’s food selection based on those factors could help the average customer parse through a massive menu and get through the selection process faster, shaving seconds off the time between ordering and collecting the meal. As McDonald’s CEO Steve Easterbrook noted on an earnings call in April, “. . . using the data collected based on current restaurant traffic at the drive-thru, the technology will begin to suggest items that can make peak times easier on our restaurant operations and crew.”

It could also help predict future demand. If the system can tell by data that it’s 80 degrees outside, sunny, and a football game is about to let out nearby, the restaurant can prepare itself with extra staffing ahead of time to move a potentially bigger rush through the line faster.

Meanwhile, companies like 5Thru and Valyant AI are implementing things like license plate recognition and conversational AI to speed up the order and pay process in the drive thru. 5Thru, in particular, is also working with car manufacturers to add voice-order capability in the vehicle, sort of like Domino’s is doing with Chevrolet and other car companies.

All of these efforts are aimed at automating parts, or eventually all, of the drive-thru process to keep chains competitive in what’s become a very oversaturated fast food market. This time next year, we’ll have a better idea of how far towards that goal Dynamic Yield can get McDonald’s, and AI in general can get the industry. If the seconds spend in line start to drop, we could one day offer a 2020-sized menu much faster, so restaurant operators can party like it’s 1999.

KFC Parent Company Ramps Up Sustainability Plans for China, Introduces Reusable Baskets

Yum China this week became the first restaurant company in mainland China to receive the International Sustainability and Carbon Certification (ISCC) label for converting its used cooking oil into sustainable biodiesel.

According to a press release, the company launched a pilot of its cooking oil project in 2018 in Chengdu, where all Yum China-owned KFC locations in the city converted their used cooking oil to biodiesel. For the project, Yum worked with biodiesel plants, oil storage sites, and waste collection companies.

For many quick-service restaurants, cooking oils are essential for business; they’re used for frying, grilling, and numerous other cooking tasks around the kitchen. In recent years, restaurants have shifted away from oils packed with trans fats to so-called “healthier” options like sunflower and soybean oil.

But even these healthier oils take their toll on the environment (and your insides, but that’s a story for another day). The EPA notes that cooking oils, whether from vegetable or animal sources, can “cause devastating effects” on the environment: they can suffocate plants and aquatic animals, clog up shorelines, catch fire, and destroy wildlife.

China is one of the world’s largest producers of waste oil, which is a huge environmental risk (to say nothing of the country’s gutter oil problem), but also a huge opportunity if more companies commit to helping turn it into sustainable fuel.

Yum China operates all mainland China locations of Taco Bell, KFC, and Pizza Hut, and owns the Little Sheep, East Dawning, and COFFii & JOY brands. Factoring in all these restaurants, that’s more than 8,600 restaurants across the country. In other words, there’s a lot of cooking oil to be recycled, and a company of Yum’s status could help set a standard for other restaurants across the country.

Recycled oil isn’t the only sustainability initiative Yum China has been up to of late. In the same press release, the company announced it had introduced reusable baskets to over 6,000 KFC locations across China.

The introduction of reusable baskets is in keeping with KFC plans here in the U.S., which include the chain converting to 100 percent renewable plastics by 2025. According to the press release, the move is expected to save more than 2,000 tons of paper per year and cut down the total amount of waste in Yum restaurants by 20 percent on average.

China, meanwhile, is turning itself into a hotbed of activity for foodtech solutions. VC firm Bits x Bites just launched an incubator in Shanghai that partners startups with major CPGs like Danone and Coca-Cola. Waste reductions, be it oils, plastics, or other materials, will no doubt play a role in some of those partnerships moving forward.

Taco Bell Launches Nationwide Delivery With Grubhub

Today, Taco Bell announced an expanded partnership with Grubhub for nationwide delivery.

The news comes a year after Taco Bell parent company Yum! Brands bought $200 million of common stock in Grubhub and started testing delivery in a limited number of markets. With the nationwide expansion, delivery is now available at roughly 65 percent of Taco Bell locations (via Grubhub, of course).

For the nationwide rollout, the two companies reportedly worked for months to directly integrate Grubhub into Taco Bell’s POS system. An integration like that means (hopefully) fewer inaccuracies on delivery orders, since workers won’t have to take an order then manually rekey it into a Grubhub tablet, as is the usual process for restaurants. The integration is Grubhub’s largest to date.

It won’t hurt Grubhub’s ongoing expansion, which is currently stretching to second- and third-tier U.S. markets (aka smaller cities). Grubhub has reportedly increased its fleet of drivers to accommodate the Taco Bell deal, which will reach many of those smaller cities.

Taco Bell has some serious growth plans in the works. Besides expanding its delivery program, the Irvine, CA-based chain plans to grow to 9,000 stores worldwide by 2022. The company will also install self-service kiosks in every U.S. restaurant by the end of 2019. Two years ago, that might have seemed like a risky business decision. But kiosks are everywhere these days, it seems, from trendy food halls to McDonald’s.

Taco bell also plans to start testing vegan and vegetarian menus in 2019. While the chain already offers some vegetarian combos, this will be the first dedicated menu for meat-free and vegan options.

That will happen a little later in 2019. In the meantime, the chain will celebrate its nationwide delivery launch by dropping the delivery fee on orders of $12 or more for a limited time.