McDonald’s to expand AI drive-thru ordering

McDonald’s is expanding tests of Archy, its smart ordering system, across additional drive-thrus in the U.S. and Australia as part of a broad push to automate ordering. Management expects Archy to be deployed across a majority of U.S. restaurants by the end of 2027, with further pilots planned internationally through 2027.

Archy is designed to handle drive-thru ordering through voice recognition, allowing crews to concentrate more on customers and food preparation. Executives describe the technology as already providing crews with more time to ensure orders are accurate and meals are prepared to standard in current tests.

Archy forms part of McDonald’s ArchIQ artificial intelligence platform, which also includes automated inventory tracking and connected kitchen equipment under the company’s NEXT initiative. The system can take orders in both English and Spanish; executives said it has accuracy above 90% in tests at the chain’s September investor day.

The technology is expected to free up at least 50 labor hours weekly per restaurant by automating routine ordering tasks. McDonald’s sees technology such as Archy as a contributor to its plan to improve restaurant margins by 250 basis points, with labor savings forming one element of that target.

Archy and ArchIQ sit within McDonald’s NEXT turnaround strategy, which calls for simpler operations, updated restaurant designs, menu innovation and additional employee training. The company expects to begin remodeling hundreds of U.S. restaurants in 2027 and to reach a global remodeling run rate above 5,000 restaurants annually from 2028. Capital expenditure for 2026 is projected at about $3.7 billion, at the low end of prior guidance, reflecting slightly fewer new restaurant openings in owned markets and foreign currency effects.

Alongside technology and remodels, McDonald’s is emphasizing lower-priced meals and promotions as financially stretched U.S. customers pull back on dining out. Management is planning a national U.S. entry-level value program in early 2027, supported by tests of mix-and-match and fixed bundles across all dayparts to assess traffic, sales and franchisee economics.

Despite management’s focus on AI, franchisees have expressed skepticism about the extent of the expected margin improvement from Archy and related tools. Some operators have said they have seen limited detail on specific productivity gains and view the 250-basis-point margin target as highly theoretical. There are also questions about whether consumers actually want voice AI at the drive-thru and whether it aligns with a renewed focus on service and hospitality.

Franchisees appear to show reluctant acceptance of the technology. Many are more enthusiastic about inventory management tools within the broader platform, which they believe can save manager labor hours, reduce food waste and enable lower inventory levels. At the same time, operators have raised concerns about technology fees, the cost of RFID tags and the need for clearer accounting of net margin benefits after these expenses.

AI is also part of McDonald’s pricing strategy, with machine-learning algorithms used to calculate what it describes as the optimal price for each menu item at each restaurant. This use of AI is at the center of a lawsuit alleging that the company uses AI-powered tools to fix prices, for which McDonald’s has engaged external legal counsel. While the outcome of this dispute is not detailed, it adds a layer of scrutiny to the company’s broader adoption of AI across operations and pricing.