Panera Bread Co. is adding to its appetite for innovation.
The Sunset Hills-based bakery-cafe operator, known locally as Saint Louis Bread Co., is starting to use new artificial intelligence technology that will take orders from customers in the drive-thru lanes at its restaurants. Panera said it will begin testing the technology on Monday at two of its locations in upstate New York.
The new technology is a result of a partnership with Boston-based AI startup OpenCity, which has developed a “virtual assistant” called Tori that uses artificial intelligence to take orders from customers at restaurants’ drive-thru operations.
“Panera is consistently looking for ways to innovate and elevate the guest experience – when we learned of this technology, it was an easy choice to test and learn and evaluate potential benefits,” said Raj Anbalagan, Panera’s senior vice president of digital and technology innovation. “Ultimately, our goal is to cut down on wait times, improve order accuracy and allow associates to focus on freshly preparing guest orders.”
Panera will begin testing the AI drive-thru technology at cafes located in the New York cities of Webster and Greece, near Rochester. Customers at those locations will continue to place their orders at drive-thru speakers, but the AI technology will take the customer’s order instead of a Panera employee. Panera said its employees will be on standby and able to step in if there’s any issues with the technology.
While OpenCity’s technology has the ability to free up Panera employees from taking orders from drive-thru customers, Anbalagan said the decision to test an AI system isn't an answer to labor struggles. "Rather, it’s an innovation that makes every Panera experience efficient, delicious and something that makes our guest come back for more," he said.
Anbalagan said Panera will consider deploying the AI technology to other bakery-cafe locations based on the results of its test at the stores in upstate New York. At the end of 2021, 44% of Panera bakery-cafes had a drive-thru, according to the company. Anbelagan said Panera focuses on piloting new products and technology on a small scale, at select locations, allowing the company an isolated look at the impact of its new initiatives.
The testing of OpenCity's AI software is the latest technology-focused initiative pursued by Panera in recent months. It has also tested a robotic coffee maker and expanded nationwide its technology that allows customers to use its mobile app to order meals inside its restaurants.
“Technology can be a key enabler of a better guest and associate experience. That is why Panera has always been an innovative company leading in digital technology. We feel our leadership in the industry can pave the way for better overall guest and employee experiences when applied correctly through rigorous testing,” Anbalagan said.
Panera had 2,116 bakery-cafes in 48 states and in Ontario, Canada, operating under the Panera Bread or Saint Louis Bread Co. names as of July 26. It is part of Panera Brands, a privately held company that also includes Caribou Coffee and Einstein Bros. Bagels.
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