Dairy Queen deploys Presto AI voice chatbots in drive-thrus
TECH

Dairy Queen deploys Presto AI voice chatbots in drive-thrus

37+
Signals

Strategic Overview

  • 01.
    Dairy Queen and Presto Phoenix are expanding their drive-thru voice AI pilot to more than 25 franchisees across 25+ U.S. states and Canadian provinces after successful testing in company-operated stores, with a long-term goal of deploying the technology across substantially all of Dairy Queen's roughly 3,000 North American drive-thrus.
  • 02.
    Dairy Queen chose Presto specifically because its menu spans over 1 million order combinations across frozen treats and hot food, and the rollout is being timed to hit the start of ice cream season.
  • 03.
    The expansion arrives with transparency baggage: 2023 Bloomberg reporting based on SEC filings showed off-site human agents assisted Presto Voice in over 70% of customer interactions, and the SEC opened an investigation into claims about the company's AI technology in July 2023. Neither Dairy Queen nor Presto has publicly detailed current human involvement.
  • 04.
    Presto is publicly marketing up to 90% non-intervention rates, up to 6% incremental drive-thru revenue, and 4x more context-specific upsell attempts than human staff, positioning itself as America's leading QSR voice AI vendor already powering Carl's Jr., Hardee's, Taco John's, and Wienerschnitzel.

Deep Analysis

The 70-Percent Question No One Is Answering

The story Dairy Queen and Presto want to tell this week is a clean one: successful pilots, promising early data, an ice-cream-season rollout across 25+ franchisees and, eventually, substantially all of Dairy Queen's roughly 3,000 U.S. and Canadian drive-thrus. The story they are not telling is the one from December 2023, when reporting based on Presto's own SEC filings revealed that off-site agents — often in places like the Philippines — assisted Presto Voice chatbots in more than 70% of customer interactions. Presto itself said at the time, "Our human agents enter, review, validate and correct orders. Human agents will always play a role in ensuring order accuracy." The U.S. SEC opened an investigation into claims about the company's AI technology in July 2023, and there is no public indication that inquiry has been resolved.

What makes that history load-bearing for today's news is scale. A pilot with human backstops is a defensible staffing model. An announcement that targets ~3,000 drive-thrus without clarifying how much of each order is actually handled by the model — versus a remote agent reviewing, correcting, or leading the interaction — turns a product decision into a disclosure question. Presto's own marketing page describes operational modes including "Supervised AI" with "constant oversight from agents" and an "Agent-led" mode where "remote agents lead order management using Voice AI infrastructure," which means the company's own product taxonomy contemplates deployments where the AI is not the primary decision-maker. Neither Dairy Queen nor Presto has said which mode franchisees will be running, and that silence is the loudest thing about this announcement.

Why a Blizzard Breaks the Drive-Thru

Dairy Queen's menu is the reason this deployment is technically interesting rather than routine. EVP of IT Kevin Baartman said the single biggest evaluation criterion was menu ingestion — "One of the key things we looked at was its ability to ingest our menu. It's done a good job with it" — because Dairy Queen's catalog spans over 1 million order combinations that sit across two fundamentally different product families: frozen treats and hot food. Most QSR voice AI deployments covered to date (Carl's Jr., Hardee's, Taco John's, Wienerschnitzel) are hot-food-dominant chains with comparatively linear combo logic. A Blizzard with custom mix-ins ordered alongside a chicken basket and a kid's meal is a different kind of parse problem.

That complexity also explains the timing. The rollout is "phased to begin over the next few weeks to capitalize on ice cream season," which is the window in which Dairy Queen's frozen-side economics are strongest and in which cross-selling hot food to treat-focused customers has the highest incremental value. Presto CEO Krishna Gupta framed that cross-sell as the real prize: "It was very important that someone could handle that complexity in real time. And then it opened up a world of possibility that you can expose guests to the food in addition to the treats and vice-versa." Baartman's claim that Presto handled Free Cone Day — the brand's annual free-soft-serve promotion that creates traffic spikes most systems would buckle under — with the simple verdict "It was able to handle everything" is the operational proof point Dairy Queen is leaning on.

The Upsell Machine: Why the Revenue Math Works Even If the AI Doesn't

The Upsell Machine: Why the Revenue Math Works Even If the AI Doesn't
U.S. consumers overwhelmingly prefer humans to AI at the drive-thru, even after trying it. (YouGov, January 2025)

Strip away the customer-service framing and this is, commercially, an upsell story. Presto's own voice-ai product page markets "up to 6% incremental revenue increase in drive-thru operations" and advertises that its system makes "4x more context-specific upsell attempts" than human staff, while claiming "up to 90% non-intervention rates." Those numbers matter because they describe a business case that can pencil out even in a world where the AI is imperfect: a modestly accurate bot that never forgets to ask about a Blizzard upgrade can outperform a tired teenager on a Saturday rush. That is why the economics survive the transparency problem — the ROI is in the upsell frequency, not the linguistic miracle.

There is, however, a second-order finding that complicates the pitch. Academic research out of Penn State found that customers are more likely to choose indulgent items when ordering via voice AI than when ordering from a human employee. Layered onto Presto's 4x upsell-attempt claim, that suggests the revenue lift isn't just about asking more often — it's about asking a customer who is psychologically more willing to say yes to a larger Blizzard or to add fries they wouldn't have ordered from a person. For a brand whose identity is already anchored in indulgence, that is a powerful flywheel. For regulators, franchisee operators balancing complaint volume, and public-health observers, it's a set of incentives pointed in a very specific direction, and one worth watching as the deployment scales past pilots into thousands of locations.

McDonald's Ghost and the 55% Problem

Dairy Queen is stepping into a category that just had its highest-profile failure. In June 2024, McDonald's announced it was ending its AI voice drive-thru test with IBM, shutting the technology off at test restaurants by July 26, 2024 after persistent issues with accents, misorders, and lane mixing. That shutdown is the cautionary mirror to Gupta's confident claim that "there's always gonna be some people who are anti-AI. But I expect that as a macro trend, that will shift pretty quickly in our favor." McDonald's had the scale, budget, and vendor heft to brute-force the problem, and still walked away. Presto's bet with Dairy Queen is that a more menu-aware, more upsell-tuned, and (critically) human-assisted architecture can land where IBM's could not.

The consumer data is not on Gupta's side — yet. A January 2025 YouGov survey cited in coverage of the rollout found 55% of Americans prefer human order-takers while only 4% prefer AI chatbots, and among people who have actually tried an AI drive-thru chatbot, only 14% said they'd pick it over a human. That preference gap is showing up raw on social: Reddit communities are treating AI drive-thrus as "a glorified automated phone call," venting about broken customizations ("no tomato add bacon"), aggressive upsells ("For just a dollar more" being met with "SHUT UP ROBOT"), and folk workarounds like ordering 55 of everything to force a human to take over. A minority of Wienerschnitzel customers have specifically praised Presto, which suggests the tech can win favor in the right context — but the sentiment gradient between journalists covering the partnership neutrally on X and customers venting on Reddit is the clearest near-term risk to a 3,000-store rollout. Dairy Queen is betting that Gupta's macro-trend thesis arrives before enough customers post the wrong viral video.

Historical Context

2023-05
CKE (Carl's Jr. and Hardee's) announced plans to roll out Presto's AI drive-thru ordering nationwide, giving Presto its first marquee national QSR deployment.
2023-07
The SEC informed Presto it was being investigated over claims regarding certain aspects of its AI technology.
2023-12
Reporting based on Presto SEC filings revealed off-site agents in places like the Philippines helped Presto Voice chatbots in over 70% of customer interactions.
2024-06
McDonald's ended its AI voice drive-thru test with IBM, shutting off the technology at test restaurants by July 26, 2024 after issues with accents, misorders, and lane mixing.
2025-04
Presto launched a phone ordering business unit to expand its Voice AI suite for QSRs beyond the drive-thru.
2026-01
Presto raised $10 million in funding early in 2026 and co-founder Krishna Gupta returned as CEO, setting up the Dairy Queen expansion.
2026-04-16
Dairy Queen and Presto announced expansion of the voice AI pilot to 25+ franchisees across 25+ U.S. states and Canadian provinces, with a long-term goal of covering substantially all ~3,000 North American drive-thrus.

Power Map

Key Players
Subject

Dairy Queen deploys Presto AI voice chatbots in drive-thrus

DA

Dairy Queen (International Dairy Queen, Inc.)

Customer and brand owner deploying Presto Voice AI across ~3,000 North American drive-thrus, with leverage to influence how franchisees use AI for order-taking and upselling.

PR

Presto Phoenix, Inc. (Presto Automation)

Voice AI vendor expanding its QSR footprint; already powers Carl's Jr., Hardee's, Taco John's, and Wienerschnitzel and positions itself as America's leading drive-thru Voice AI provider.

KE

Kevin Baartman, EVP of IT, Dairy Queen

Executive sponsor framing the rollout as a way to free staff for high-value work while preserving accuracy and hospitality, and the public face of Dairy Queen's vendor-selection rationale.

KR

Krishna K. Gupta, CEO and co-founder, Presto

Returned as CEO in early 2026 and is driving the Dairy Queen expansion, publicly arguing that anti-AI sentiment will fade as adoption grows.

DA

Dairy Queen franchisees across 25+ states and provinces

Operators who will actually run the AI at the drive-thru and experience first-hand changes to staffing, order accuracy, and upsell mix as the technology phases in.

OF

Off-site human agents and the U.S. SEC

Per 2023 SEC filings and Bloomberg reporting, humans based in places like the Philippines assisted Presto Voice in the majority of orders; the SEC opened an investigation in July 2023 into claims about Presto's AI, creating a regulatory overhang as the system scales.

THE SIGNAL.

Analysts

"Frames Presto as a partner that lets staff focus on high-value tasks while delivering accuracy and a friendly guest experience: "Presto has been an excellent partner and our initial results using their AI look quite promising. With Presto's AI, we can enable our staff to focus on high-value tasks that ultimately benefit our Fans, with a friendly experience, and high order accuracy.""

Kevin Baartman
EVP of IT, Dairy Queen

"Identifies menu ingestion as the pivotal evaluation criterion for picking Presto: "One of the key things we looked at was its ability to ingest our menu. It's done a good job with it." He also said of Presto's handling of Free Cone Day, "It was able to handle everything.""

Kevin Baartman
EVP of IT, Dairy Queen

"Argues menu complexity forced Dairy Queen to seek real-time AI that can cross-sell frozen and hot items: "It was very important that someone could handle that complexity in real time. And then it opened up a world of possibility that you can expose guests to the food in addition to the treats and vice-versa.""

Krishna Gupta
CEO, Presto

"Expects consumer resistance to voice-AI drive-thru ordering to reverse at a macro level: "There's always gonna be some people who are anti-AI. But I expect that as a macro trend, that will shift pretty quickly in our favor.""

Krishna Gupta
CEO, Presto

"Acknowledges human agents are structurally part of order accuracy, not just a fallback: "Our human agents enter, review, validate and correct orders. Human agents will always play a role in ensuring order accuracy.""

Presto (2023 corporate disclosure)
Corporate statement tied to SEC filings
The Crowd

"Exclusive: That Blizzard might come with a digital touch: Dairy Queen is widening its test of bots that take drive-through orders."

@@WSJ19

"Dairy Queen is putting an AI chatbot in its drive-thrus"

@@verge17

"Dairy Queen is testing Presto Voice AI technology in franchise stores:"

@@DBerthiaumeCSA0

"Dairy Queen is putting an AI chatbot in its drive-thrus"

@u/TheStartupChime1
Broadcast
Dairy Queen is testing a voice AI system for taking drive-thru window orders

Dairy Queen is testing a voice AI system for taking drive-thru window orders

A.I. taking orders at an Arizona Carl's Jr. Drive-thru

A.I. taking orders at an Arizona Carl's Jr. Drive-thru

Wendy's, Google preview partnership with new AI-powered drive-thru

Wendy's, Google preview partnership with new AI-powered drive-thru