By Lea Mira, RTN staff writer - 2.19.2025
Wendy’s is expanding its investment in digital and AI-driven technology as part of its broader strategy to enhance operational efficiency, improve customer experience, and support long-term growth. In 2023, the company allocated over $53 million to digital initiatives, including AI-powered ordering systems, self-service kiosks, and mobile app enhancements. For 2025, Wendy’s plans to more than double its capital expenditures to between $100 million and $110 million, with a focus on deploying technology across more locations and accelerating global expansion.
A central component of Wendy’s digital transformation is the rollout of Wendy’s FreshAI, an AI-powered drive-thru ordering system developed in collaboration with Google Cloud. Piloted last year, FreshAI is designed to automate order-taking, potentially reducing labor strain, increasing speed of service, and improving order accuracy. The AI system enables customers to place their orders through voice recognition technology, eliminating the need for human interaction at the drive-thru speaker while employees focus on other tasks. CEO Kirk Tanner has expressed confidence in the system’s ability to streamline operations, regularly testing FreshAI himself and observing continuous improvements in its performance.
Early results from the pilot program have shown promise. Wendy’s reports that FreshAI has contributed to an increase in the average check size by consistently recommending additional menu items. The system has also improved labor efficiency by reducing the time employees spend on order-taking. However, the long-term success of the initiative will depend on the AI’s ability to handle complex orders, accurately process modifications, and adapt to varying levels of ambient noise in different restaurant environments. If the expanded rollout of 500 to 600 locations proves successful, Wendy’s may consider implementing FreshAI across more of its U.S. restaurants.
Beyond AI integration, Wendy’s continues to strengthen its overall digital infrastructure to enhance customer engagement and streamline ordering processes. Enhancements to its mobile app have been a key driver of digital sales growth, which increased by nearly 40% year-over-year. The digital sales mix also rose by 130 basis points in the fourth quarter, reaching 19%. Meanwhile, Wendy’s loyalty program saw a 25% increase in membership over the past year, bringing its total to 46 million members. The company views loyalty and digital engagement as essential components of its strategy to drive repeat business and improve customer retention.
In addition to AI and digital ordering, Wendy’s is implementing other technology upgrades to improve restaurant operations. Digital menu boards and self-service kiosks have been introduced to create a more seamless ordering experience, while integrated back-of-house systems are being enhanced to improve operational efficiency. The company is also investing in expanded field resources to better support franchisees and restaurant teams. These resources aim to provide more direct operational support, helping franchise operators and employees implement best practices and optimize restaurant performance. More details on these initiatives are expected to be shared during Wendy’s investor day on March 6.
As Wendy’s continues to advance its digital and AI initiatives, the company remains focused on balancing innovation with operational efficiency. By integrating FreshAI, enhancing its digital infrastructure, and increasing support for franchisees, Wendy’s aims to adapt to evolving consumer preferences, improve service speed and accuracy, and sustain long-term business growth in an increasingly competitive fast-food landscape.
