Frankly I really dislike being “upsold”. I’m here to order what I want, I don’t need anyone to second-guess my choices. But that’s a minor annoyance. What workers experience from these “tools” sucks.Like many restaurant owners, Andrew Valkanoff hands out bonuses to employees who’ve done a good job. But at five of his Dairy Queen franchises across North Carolina, those bonuses are determined by AI.
The AI system, called Riley, collects streams of video and audio data to assess workers’ performance, and then assigns bonuses to those who are able to sell more. Valkanoff installed the system, which is developed by Rochester-based surveillance company Hoptix, less than a year ago with the hopes that it would help increase sales at a time when margins were shrinking and food and labor costs were skyrocketing.
Thanks to Riley, he was able to get a 3% uptick in sales, Valkanoff said. “Every nickel right now in my business matters,” he said.
Riley, installed at about 100 stores across the country including KFC and Taco Bell franchisees, ingests data including workers’ conversations with customers, and uses AI to detect whether and how often employees have tried to “upsell” (offered add ons or extra toppings), “upsize” (offered a larger size) or tried to sign a customer up for a loyalty program. Employees who make the most suggestions and whose suggestions get converted into sales receive cash bonuses based on a scorecard generated by Hoptix's AI system. The software also tracks how quickly meals are prepared (what are the busiest times at a store and what causes long lines at drive-through) as well as how much food is wasted.
Some experts are concerned that these kinds of AI tools can be used as an excuse to hold workers to unfair productivity standards. “A lot of times what gets called productivity issues, especially in fast-food contexts, are often a result of severe understaffing,” Alexandra Mateescu, a researcher at nonprofit research group Data and Society told Forbes. “There's a concern that such surveillance is going to further squeeze workers in a context where there's hardly anything left to squeeze.”
That hasn’t stopped the fast-food industry from wholeheartedly embracing AI-based surveillance tools that record and judge workers’ efficiency. In 2019, Domino’s rolled out the DOM Pizza Checker across all its stores in Australia and New Zealand. The checker was an overhead camera programmed with AI and machine learning that scanned millions of pizzas to ensure workers had added the correct toppings and distributed them evenly. Outback Steakhouse, a chain of Australian-themed casual dining restaurants, has also used artificial intelligence to monitor how fast its food is served and how frequently a server tends to tables. Fast food chains have adopted other less technical ways of gauging employees’ performance too, like ratings from customers that then dictate which and how many shifts workers are assigned and can even get them fired.