Wendy’s is turning to artificial intelligence (AI) to meet the growing demand for its popular Frosty dessert. The fast-food chain has partnered with Palantir Technologies to enhance its supply chain capabilities and ensure it can handle increased customer interest, especially during promotions like the $1 Frosty offer.
According to Bloomberg, Wendy’s supply chain team is using AI to predict and prevent shortages before they occur. This comes at a time when the restaurant industry is grappling with high inflation, rising labor costs, and increased ingredient prices. The integration of AI represents a crucial step for Wendy’s as it seeks to maintain efficiency in a sector known for its slim profit margins.
Wendy’s Quality Supply Chain Co-op, which manages purchasing for over 6,000 U.S. locations, believes that Palantir’s technology will help streamline operations. Traditionally, restaurants keep extra stock on hand to prepare for unexpected demand, but inflation has made this practice more expensive. Pete Suerken, president of the co-op, emphasized the importance of adopting these technologies: “Three or four years from now, if you’re not doing this, you’ll be at a distinct disadvantage.”
Palantir’s platform uses various data inputs, including shipping costs and historical sales figures, to enhance decision-making processes. The company has seen a surge in demand for its supply chain services since the pandemic disrupted logistics. Other notable clients of Palantir include Tyson Foods and General Mills.
Wendy’s will utilize this AI system to monitor product expiration dates and suggest alternatives based on factors such as pricing and delivery schedules.
New Flavor on The Menu
In addition to improving supply chain efficiency, Wendy’s is reportedly introducing a new flavor of its Frosty: salted caramel. This new offering will replace the Pineapple Under the Sea Frosty, which was part of a collaboration with SpongeBob SquarePants during Wendy’s 25th anniversary.
The announcement about the Salted Caramel Frosty was first reported by Snackolator, a popular Instagram blogger who previously covered the Under the Sea Frosty.
As Wendy’s continues to innovate both in its menu offerings and operational strategies through AI integration, it aims to enhance customer satisfaction while navigating the challenges posed by a competitive fast-food landscape.
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