Last week, we announced Del Taco as our second enterprise customer to embrace a nationwide expansion of Presto Voice™. This new customer not only doubles the amount of locations who can potentially deploy our voice-recognition A.I. (artificial intelligence) solution, but also positions us as the only A.I. company deploying two drive-thru automation rollouts at the enterprise level. This is a first in the QSR industry.
Presto’s A.I. powered voice solution is already operating 24/7 at select Del Taco locations and significantly helping operations. Instead of having to juggle order-taking with other tasks, the staff can now focus on these tasks because the A.I. handles this key aspect. The A.I. never forgets to upsell, making suggestions such as Donut Bites to go with coffee or Sprite to go with nachos.
Indicators already show that customers like these types of suggestions, and Del Taco likes that customers are pleased, and it is reflected in revenue numbers for the company. From October 2022 thru December 2022, over 82 percent of customers were offered an upsell resulting in over 30% take rate (acceptance rate) for pilot locations during that test period.1
Voice A.I. also means that the customer does not have to suffer the woes of having to wait longer if the store is understaffed. As the post-pandemic instance continues to face labor shortages in the restaurant industry, having A.I. voice assistants means relief on this front and being able to take care of customers. For Del Taco, Presto Voice offers an improved customer experience that has benefits for the company in the longer term.
Del Taco represents over $10 million in ARR2 (Annual Recurring Revenue) for Presto. Importantly, the time from launching the initial pilot location to the signing of an MSA (Master Sales Agreement) was 4 months, representing a shortening of our previous sales cycles.
Finally, Del Taco’s parent company is Jack in the Box. Jack in the Box has 2100 locations and presents additional opportunities for Presto Voice A.I. deployments.
Presto Voice a Compelling ROI
Presto Voice has a powerful ROI that includes labor savings as well as incremental revenue generation by continuous upselling of customers. Presto Voice can save 5-10 labor hours a day, expanding restaurant operating margins by around 10%.3 On average, we increase upsell acceptance rates (take rates) between 25% and 70% of the time, depending on the location.4
Computer Vision Augments Voice Automation
Presto Vision™ A.I. technology allows QSRs to optimize drive-thru operations, reduce costs, boost staff productivity, and gain more data-driven insights. These insights include securely identifying repeat guests and offering them personalized suggestions, measuring the real-time speed of service, helping reduce bottlenecks and cut long lines, and integrating with existing restaurant infrastructure.
When deployed together, Presto Voice means A.I.-handled order taking and more streamlined order fulfillment, and Presto Vision means that real-time performance data on car lines, times, and security are available as business insights. The combination means that drive-thru operators can reduce costs, increase staff productivity, and gain more data-driven insights, altogether enabling smoother operations.
Significant Market Opportunity
There are 200,000 QSR drive-thrus in the US5, representing a $5 billion ARR opportunity for Presto Voice6. Our current pilots constitute 15,000 locations and a $200 million ARR opportunity.7 With a clear technology edge, market share leadership, and increasing brand presence, Presto is poised to continue its leadership as the automation provider of choice to the QSR industry.
1Data based on Del Taco pilots from October 2022 thru December 2022
2ARR opportunity determined by # of drive-thrus x Presto fees
3Data based on QSR Voice pilots conducted with Presto in 2022. See also Automating Profits: Upselling with AI in the QSR Drive-Thru, market research study from Presto, 2022
4Calculations that were determined from a Presto Voice pilot between 9/2022 and 12/2022.
5See QSR Drive-Thru Sector, April 2021, publication by Quantum Pulse, https://www.qreadvisors.com/
6Calculated based on the number of drive-thrus in the U.S. to date, times estimated Presto fees projected from actual deployments by the company.
7QSR (2020 Drive-thru Survey). ARR opportunity determined by # of drive-thrus x Presto fees
Presto overlays next-gen digital solutions onto the physical world. Our enterprise-grade touch, vision, and voice technologies help hospitality businesses thrive while delighting guests. With over 100 million guests using Presto each month and 300,000 systems shipped, we are one of the largest technology providers in the industry.
Founded at M.I.T. in 2008, Presto is headquartered in Silicon Valley, Calif. with customers including top 20 hospitality chains such as Applebee’s, Aramark, Chili’s Grill & Bar, Denny’s, and Outback Steakhouse.