McDonald's is expanding its use of artificial intelligence in hopes of saving 50 labor hours a week at its restaurants. Franchisees, however, are questioning whether the savings will outweigh the costs and if customers want AI to take their orders.
Here's what to know
Additional drive-thrus in the United States and Australia will test Archy, McDonald's smart ordering technology, Restaurant Dive reported.
CEO Chris Kempczinski discussed the expansion during an earnings call, in which he announced more overseas trials are scheduled for 2027.
Most U.S. McDonald's restaurants are expected to get the system, which executives said takes voice orders in Spanish as well as English. The outlet noted that during the chain's September investor day, it reported that its accuracy exceeded 90% and that customer satisfaction was high in early tests.
The projected labor savings are part of a broader technology initiative intended to raise restaurant margins by 2.5 percentage points, according to Restaurant Dive. Kempczinski said the system would allow staff to concentrate on customer service and food quality.
More background
Operators received few details about what would improve productivity. Restaurant Dive noted that Peter Saleh, who analyzes restaurants and food distributors, reported that concern in October.
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The margin target "seems highly theoretical," operators said at the time, according to Saleh.
Whether the gains would hold up after all expenses were counted was another question operators raised in Saleh's report.
"Franchisees are most excited about the inventory management tools … one that many agree has the opportunity to save manager labor hours, reduce food waste, and enable lower inventory levels," Saleh wrote, per Restaurant Dive.
AI systems such as Archy depend on computing infrastructure powered by the energy grid. While AI can help optimize clean-energy systems, running the technology consumes significant electricity, and cooling its infrastructure can require water. These demands can strain resources and contribute to higher energy bills.
What's being done?
Automated inventory tracking and connected equipment sit alongside voice ordering in McDonald's ArchIQ AI platform. According to Restaurant Dive, the chain announced the system in September as part of its Next initiative.
McDonald's plans to provide updates as testing expands.
"We'll continue to regularly update you on our progress and associated results behind key elements of Next throughout 2027," Kempczinski said, per the outlet.
Franchise operators appeared to be wary.
"While Archy appears to be making progress on accuracy in tests and franchisees are eager for the labor savings, some questioned if the consumer actually wants this technology, and if voice AI is inconsistent with the renewed focus on service and hospitality," Saleh said, Restaurant Dive reported.
Where can I learn more?
McDonald's and other restaurants are weighing automation's potential savings against the value of human service.
• In Sydney, McDonald's is testing AI drive-thru ordering while some customers want a real person.
• Chick-fil-A says drive-thru orders will stay human-to-human even as rivals test AI.
• McDonald's is retraining two million workers as fast-food chains reconsider kiosks and apps.
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