Dive Brief:
- Wendy’s CEO Kirk Tanner credited the app enhancements designed to enable better experiences as a major force behind the chain’s nearly 40% year-over-year digital sales growth, he said on a Q3 2024 earnings call Thursday.
- The restaurant chain will expand its drive-thru AI pilot to additional restaurants in 2025 following its success this year, according to Tanner. The system improves efficiency and lets associates spend more time on CX tasks.
- The technology in Wendy’s newest restaurants has improved drive-thru and delivery experiences as well as employee satisfaction, according to Tanner. The company will close underperforming restaurants in favor of its reimagined model, which is in 89% of its locations globally.
Dive Insight:
Wendy’s wants to improve the customer experience through operational enhancements, which could help it accelerate sluggish sales growth.
Global same-store sales rose 0.2% in the quarter, according to an earnings report released Thursday. The closure of weaker restaurants is expected to improve the chain’s overall health and ensure customers receive consistent experiences no matter where they dine.
“We're doubling down on operational excellence ensuring customers receive the same excellent experience across every Wendy's restaurant,” Tanner said during the earnings call.
The drive-thru AI is an important aspect of the chain’s operational and CX plans, according to Tanner. Drive-thru accounts for 70% of the chains transactions.
Despite the early success, Wendy’s plans on taking its time with the AI rollout. The restaurant chain is continuously improving and learning from its deployment as it continues to improve order accuracy.
“This is one of those things you go slow to go fast,” Tanner said.
Improvements to the Wendy’s loyalty program play a role in its plans as well. The company invested $15 million into its app as of Q1 2024, and the chain’s loyalty program reached 45 million members in Q3, up from 43 million in the previous quarter, according to Tanner.
Other chains are improving their drive-thrus with AI. Taco Bell plans to roll out its voice-based drive-thru technology to hundreds of locations by the end of the year, and while McDonald’s ended its test in June, the company still sees a future for automated order taking.
