TECH NEWS

AI Conquered Coding. Fast Food Is Next

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“The restaurants ended up spending more time smoothing over the problem they created,” says Michael Schatzberg, cofounder of Branded Hospitality, which invests in food-service-technology companies. “Everyone was like, ‘This is the worst.
Stop. Get the people back with the headsets.’”

Branded Hospitality sold off its early AI-drive-thru investments. In 2024, Del Taco rolled back its AI-drive-thru test. McDonald’s eventually sold McD Tech Labs to IBM and later pulled the plug on the tech altogether.

Not every chain discarded their AI-drive-thru efforts. Many—including Dairy Queen, White Castle, and Taco Bell—continued to quietly expand their tests. AI represented more than new technology. It was the dream at the very core of fast food: making the process of obtaining sustenance faster and faster, while cutting costs further and further.

Four years into the White Castle’s partnership with SoundHound AI, chief marketing officer Jamie Richardson says AI drive-thrus make employee shifts run smoother and...

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