Carl’s Jr., Hardee’s to roll out Presto AI drive-thru ordering

Carl’s Jr. and Hardee’s locations will roll out automated drive-thru ordering nationwide using Presto’s artificial intelligence software.

The partnership with CKE Restaurants, the parent of Carl’s Jr. and Hardee’s, is the largest launch to date for Presto Voice — which is already used at Del Taco and Checkers & Rally’s restaurants. The technology’s adoption at the burger chains is also the biggest rollout for automated drive-thru ordering across the restaurant industry, according to Presto interim CEO Krishna Gupta.

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Together, Carl’s Jr. and Hardee’s have about 2,800 restaurants across 44 U.S. states. Hardee’s locations are mostly in the Midwest and South, while Carl’s Jr. restaurants are found in the West. CKE’s revenue rose 10.2% last year to $646.3 million, according to franchise disclosure documents.

CKE tested the software last year at a handful of Carl’s Jr. and Hardee’s locations. The company’s chief technology officer, Phil Crawford, told CNBC that the pilot exceeded CKE’s expectations for key metrics, like speed of service, upselling, intervention rate from workers, order accuracy, and the employee and customer experience.

The wider rollout of Presto’s technology at CKE’s restaurants comes amid broader adoption of artificial intelligence in the restaurant industry.

The technology runs on its own, but workers can still hear customers’ orders through their headsets while they make drinks, accept payment and talk to customers at the window. Customers spend less time in the drive-thru line, while employees aren’t overwhelmed by too many tasks.

Artificial intelligence is also better at “relentlessly upselling” customers, according to Presto President Dan Mosher. Adding fries or a large drink to the order means more sales for restaurants.

CKE operates about 250 of Carl’s Jr. and Hardee’s restaurants, while franchisees run the rest. Crawford declined to share how many franchisees have already signed on to use Presto Voice but said the technology complements CKE’s broader effort to improve the drive-thru ordering experience.

“Like most people in the [quick-service restaurant] industry, we’ve obviously seen a continued surge in drive-thru ordering,” he said. “This is us focusing on speed of service and accuracy.”

Private equity firm Roark Capital owns CKE Restaurants. The firm also owns Dunkin’ parent Inspire Brands and Auntie Anne’s owner Focus Brands.

CKE isn’t the only restaurant company using automation to upgrade its drive-thru service. McDonald’s sold McD Tech Labs, previously known as Apprente, to IBM in 2021 and said it would partner with the tech company to develop artificial intelligence that can take drive-thru orders.

Gupta said some of those employees now work for Presto.

Historically, the restaurant industry has been reluctant to invest in technology, often trailing behind retailers and other consumer businesses. Gupta chalks it up to eateries’ low margins and relatively low labor costs.

But restaurants’ strategies…