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    260 McNuggets? McDonald’s Ends A.I. Drive-Through Tests Amid Errors

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    Ordering mistakes frustrated customers during nearly three years of tests. But competitors like White Castle and Wendy’s say their A.I. ordering systems have been highly accurate.In the nearly three years since McDonald’s announced that it was partnering with IBM to develop a drive-through order taker powered by artificial intelligence, videos popped up on social media showing confused and frustrated customers trying to correct comically inaccurate meals.“Stop! Stop! Stop!” two friends screamed with humorous anguish on a TikTok video as an A.I. drive-through misunderstands their order, tallying up 240, 250 and then 260 Chicken McNuggets.In other videos, the A.I. rings up a customer for nine iced teas instead of one, fails to explain why a customer could not order Mountain Dew and thought another wanted to add bacon to his ice cream.So when McDonald’s announced in a June 13 internal email, obtained by the trade publication Restaurant Business, that it was ending its partnership with IBM and shutting down its A.I. tests at more than 100 U.S. drive-throughs, customers who had interacted with the service were probably not shocked.The decision to abandon the IBM deal comes as many other businesses, including its competitors, are investing in A.I. But it exemplifies some of the challenges companies are facing as they jockey to unlock the revolutionary technology’s potential.Other fast-food companies have had success with A.I. ordering. Last year, Wendy’s formed a partnership with Google Cloud to build out its A.I. drive-through system. Carl’s Jr. and Taco John’s have hired Presto, a voice A.I. firm for restaurants. Panda Express has approximately 30 automated order takers at its windows through a partnership with the voice A.I. firm SoundHound AI.We are having trouble retrieving the article content.Please enable JavaScript in your browser settings.Thank you for your patience while we verify access. If you are in Reader mode please exit and log into your Times account, or subscribe for all of The Times.Thank you for your patience while we verify access.Already a subscriber? Log in.Want all of The Times? Subscribe. More

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      Companies Counter Pushback on Price Increases With Promotions

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      “The consumer was a fat pig — now there’s nothing left, and they need to feed the pig again,” one banker told DealBook.The president of McDonald’s USA, Joe Erlinger, pushed back on “inaccurate” reports this week that said the chain had more than doubled its prices on some items over the last decade. But his retort wasn’t exactly reassuring: The average price of a Big Mac is up 21 percent from 2019.Erlinger’s rebuttal underlines the heat that some companies are facing as the news media, politicians and consumers focus on steadily rising prices. Whether persistent price increases reflect price gouging, or simply companies’ own rising costs, is a matter of fierce debate. Either way, one thing is clear: Consumers are becoming fed up.McDonald’s first-quarter earnings fell short of analyst expectations on sales, as “consumers continue to be even more discriminating” with their dollars, the chain’s chief executive, Chris Kempczinski said. Starbucks, Target and Yum Brands, the parent company of Pizza Hut and KFC, also reported earnings misses, each acknowledging increasingly cautious customers among other factors like the war in the Middle East.Consumer spending remained surprisingly resilient in the face of stubbornly fast inflation, but now savings from the coronavirus pandemic have dried up, economic growth has slowed and many companies are working to counteract the belief that their prices have gotten out of control.As one banker told DealBook: “The consumer was a fat pig — now there’s nothing left, and they need to feed the pig again.”The message: Consumers have hit their limit. During periods of rapid inflation, companies tend to push to see how far they can raise prices. “We’re taking smaller, more frequent price increases because it gives us the flexibility to be able to see how consumers are reacting and then adjust if or when necessary,” Kevin Ozan, the chief financial officer of McDonald’s, told analysts in 2022.We are having trouble retrieving the article content.Please enable JavaScript in your browser settings.Thank you for your patience while we verify access. If you are in Reader mode please exit and log into your Times account, or subscribe for all of The Times.Thank you for your patience while we verify access.Already a subscriber? Log in.Want all of The Times? Subscribe. More

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      Morgan Spurlock, Documentarian Known for ‘Super Size Me,’ Dies at 53

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      His 2004 film, which was nominated for an Oscar, followed Mr. Spurlock as he ate nothing but McDonald’s for a month.Morgan Spurlock, a documentary filmmaker best known for the Oscar-nominated 2004 film “Super Size Me,” which followed him as he ate nothing but McDonald’s for 30 days, died on Thursday. He was 53.His brother Craig Spurlock confirmed the death in a statement to The Associated Press, and said the cause was complications from cancer. The statement did not say where he died.In “Super Size Me,” Mr. Spurlock tested the broadly held idea that fast food is unhealthy by gorging on McDonald’s Super Size meals, hamburgers, fries, soda and more for weeks, as he steadily gained weight. The film, which grossed more than $22 million on a $65,000 budget, contributed to a sweeping backlash against the fast food industry.A full obituary will follow. More

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      McDonald’s to Buy Back 225 Franchised Outlets in Israel After Boycotts

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      McDonalds has said that it will buy back all of its 225 franchised restaurants in Israel, weeks after the company warned that boycotts and protests over the Israel-Hamas war had hurt its business in the Middle East.The deal, announced on Thursday, would bring all of the stores under the direct management of McDonald’s Corporation. The company did not disclose terms of the deal but said that the chain’s 5,000 workers in Israel would keep their jobs.The move highlighted the deepening political polarization that multinational corporations face during the war, including claims and counterclaims by activists and companies about what both sides say are disinformation campaigns.McDonald’s operations in the region slumped when the franchises in Israel, run by Alonyal Limited, began donating thousands of meals to Israeli soldiers after the deadly Hamas-led attacks on Oct. 7.The donations, described at the time by Alonyal as a show of solidarity to support the military and hospital workers, set off boycotts in neighboring countries, and prompted McDonald’s franchises in Jordan, Oman, Saudi Arabia, Turkey and the United Arab Emirates to issue statements distancing themselves from the Israeli franchise.In Kuwait and Qatar, McDonald’s franchise owners also pledged hundreds of thousands of dollars for relief efforts in Gaza. A hashtag, #BoycottMcDonalds, rallied consumers in the Middle East and other majority-Muslim countries to stay away from the fast-food giant’s chains, accusing it of “supporting genocide” in Gaza.We are having trouble retrieving the article content.Please enable JavaScript in your browser settings.Thank you for your patience while we verify access. If you are in Reader mode please exit and log into your Times account, or subscribe for all of The Times.Thank you for your patience while we verify access.Already a subscriber? Log in.Want all of The Times? Subscribe. More