Wendy’s Doubles Down on Digital and AI to Enhance Customer Experience and Boost Efficiency

Wendy’s is significantly increasing its investment in digital technology, aiming to improve its operations, enhance the customer experience, and support long-term growth. After spending over $53 million on digital initiatives in 2023, the company plans to more than double this figure in 2025, investing between $100 million and $110 million. This funding will help expand technology across more locations and fuel Wendy’s global growth.

AI Revolution: Wendy’s FreshAI Drive-Thru System

A central part of Wendy’s digital transformation is the introduction of FreshAI, an AI-powered drive-thru ordering system developed in partnership with Google Cloud. Piloted last year, the system uses voice recognition technology to automate order-taking, eliminating the need for human interaction at the drive-thru. This allows staff to focus on other tasks, improving both speed and accuracy.

CEO Kirk Tanner is optimistic about the system’s potential, noting the positive results from the pilot phase. FreshAI has been successful in recommending additional items, increasing the average check size, and enhancing labor efficiency by reducing the time employees spend on order-taking. While early results are promising, the system’s long-term success will depend on its ability to handle complex orders and adapt to various restaurant environments. If the expanded rollout to 500 to 600 locations proves successful, Wendy’s plans to extend FreshAI to more of its U.S. restaurants.

Boosting Digital Sales and Loyalty Programs

Beyond AI, Wendy’s has been enhancing its mobile app to drive digital sales growth, which has surged by nearly 40% year-over-year. The company reports that the digital sales mix grew by 130 basis points in the fourth quarter, reaching 19%. Wendy’s loyalty program has also seen substantial growth, with membership rising by 25% in the past year to reach 46 million members. This digital engagement is vital to Wendy’s strategy, which focuses on increasing repeat business and improving customer retention.

Operational Enhancements for Seamless Ordering

In addition to the digital ordering innovations, Wendy’s is introducing digital menu boards and self-service kiosks in its restaurants. These upgrades aim to provide a smoother ordering experience for customers and reduce wait times. Back-of-house systems are also being enhanced to improve operational efficiency, ensuring that orders are processed quickly and accurately.

Furthermore, Wendy’s is investing in more field resources to provide direct operational support to franchisees and restaurant teams. This support will help operators implement best practices, optimize restaurant performance, and ensure that all locations meet the company’s high standards.

Future Outlook: A Balanced Approach to Growth

As Wendy’s continues to roll out its digital and AI-driven initiatives, the company is committed to balancing innovation with operational efficiency. By integrating advanced technologies like FreshAI, upgrading its digital infrastructure, and bolstering support for franchisees, Wendy’s is positioning itself to adapt to changing consumer preferences, improve service speed and accuracy, and maintain long-term growth.

The fast-food industry is more competitive than ever, and Wendy’s is taking bold steps to ensure it stays ahead. With these ongoing investments in technology, the company aims to create a seamless and more efficient experience for its customers, while also strengthening its position for future success.

More details about Wendy’s initiatives and their progress will be revealed during the company’s investor day on March 6. As the fast-food giant continues to innovate, it remains focused on improving both the customer experience and its bottom line.