Taco Bell wants to make fast food even faster — Nvidia says it can help

The US fast-food business is more productive than it’s been in decades — and Taco Bell is betting on AI to stay ahead.

3/21/25 8:34AM

Taco Bell is about to get an AI makeover from one of the biggest names in the game.

Yum! Brands, the owner of Taco Bell, KFC, and Pizza Hut, announced it is teaming up with Nvidia to bring the chip giant’s AI technology to its drive-thrus and restaurant operations — upgrading and expanding Taco Bell’s existing voice AI.

According to Tuesday’s announcement, Nvidia’s AI software will be integrated into Yum’s in-house tech platform, enabling voice assistants to take orders more smoothly, smart cameras to track bottlenecks in real time, and AI analytics to help managers optimize operations.

Yum has already tested the technology at select Taco Bell and Pizza Hut locations, and plans to expand it to 500 restaurants across its four brands in the second quarter. Indeed, Taco Bell could really use the boost.

Taco Bell <> Nvidia collab — Sherwood News

According to the 2024 QSR Drive-Thru Report, the chain lags its biggest competitors like Wendy’s and McDonald’s, taking one to two minutes longer to complete orders per car — while ranking worst in order accuracy among the 10 major fast-food chains surveyed.

These rivals aren’t slowing down on AI either: Wendy’s is scaling up its voice AI ordering from 100 to 500 to 600 drive-thru locations by year-end. Meanwhile, McDonald’s is planning to use AI across all 43,000 of its stores after scrapping an earlier drive-thru AI trial that struggled with accuracy.

The AI push comes at a time when restaurant labor productivity is soaring in the US, after staying flat for nearly 30 years. According to a new NBER study, fast-food labor productivity jumped over 15% during the pandemic as more customers chose takeout and delivery, spending less time in-store.

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American Airlines joins the flock, hiking bag fees amid higher jet fuel prices

American Airlines on Thursday announced that it, too, will be hiking the fees it charges customers to check luggage.

With the move, all four of the major US airlines, which together control about 80% of the US market, have now hiked their baggage fees in recent days amid surging jet fuel prices.

The change will go into effect on tickets bought on or after Thursday, the same day Southwest’s hike begins.

Since late March, JetBlue, Delta Air Lines, United Airlines, Canada’s WestJet, and Southwest have hiked their fees. Experts expect more major carriers to follow, and to potentially tweak the pricing of other ancillary revenue sources like seat assignments and carry-on luggage.

American Airlines updates bag fees and Basic Economy fares

The change will go into effect on tickets bought on or after Thursday, the same day Southwest’s hike begins.

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Less than a year after implementing them, Southwest is also hiking its bag fees

Southwest Airlines has joined the growing list of airlines opting to hike their bag fees amid sustained higher jet fuel costs.

Starting today, the first checked bag at the carrier — which implemented bag fees less than a year ago — will jump from $35 to $45, and the second from $45 to $55. Southwest quietly disclosed the change Tuesday.

Southwest assigned the decision to “part of an ongoing analysis of the business and against the evolving global backdrop.”

As of Wednesday, jet fuel prices dropped to $4.16 a gallon, per the Argus US Jet Fuel Index, down from $4.81 on Tuesday following President Trump’s ceasefire announcement, which sent travel stocks soaring. Major airlines have shed some of those gains in premarket trading Thursday.

With the move to hike bag fees, Southwest joins JetBlue, United Airlines, Delta Air Lines, and Canada’s WestJet, all of which also boosted fees this month. Experts expect more major carriers to follow, and to potentially tweak the pricing of other ancillary revenue sources like seat assignments and carry-on luggage.