Branded Hospitality backs Arc’s drive-thru voice AI platform

Branded Hospitality announced a partnership with Arc on July 7, 2026, linking the hospitality media and investment platform with a voice AI system built to improve drive-thru sales, accuracy and labor efficiency. The deal underscores growing interest in using AI to turn the drive-thru into a measurable digital growth channel for restaurant operators.

Why it matters: - The partnership connects Branded Hospitality’s restaurant operator network with Arc’s drive-thru AI tools aimed at lifting revenue and efficiency. - Arc is positioned as a way for restaurant operators to improve average order value, order accuracy and labor performance without adding hardware or disrupting existing workflows. - The collaboration reflects a broader shift toward using drive-thru data and automation as a growth channel, not just an ordering tool.

What happened: - Branded Hospitality announced a new partnership with Arc on July 7, 2026. - Branded Hospitality is a hospitality-focused media and investment platform. - Arc is a voice AI platform built to run, optimize and grow the drive-thru as a digital channel. - Michael Schatzberg, Branded Hospitality co-founder and host of The Hospitality Hangout podcast, said the platform changes the economics of the drive-thru. - Mike MacLennan, Arc co-founder and co-CEO, said Branded brings operator credibility and media reach to Arc’s growth efforts.

The details: - Arc’s platform adds AI-powered upselling, real-time accuracy tracking, automated A/B testing across locations and a live analytics dashboard. - Arc says customers see 3% to 7% higher average order value, 5% to 10% better order accuracy and measurable labor savings per shift. - Arc says those gains come with no negative impact on customer satisfaction or line speed. - Arc’s voice AI agents are trained on thousands of real orders and are built for drive-thru conditions, including accents, background noise and complex customizations. - Arc says the system handles orders with 95%+ accuracy. - The platform integrates with major POS systems including NCR, Toast, Par/Brink and Oracle Micros. - Arc requires no new hardware and no changes to existing operations. - Menu updates, limited-time offers and out-of-stock items can be pushed in minutes. - Crew members can communicate with Arc in real time. - Arc says the drive-thru becomes smarter with each order. - Branded Hospitality says its business spans investment, solutions and media for hospitality and foodservice. - Arc says it is headquartered in San Francisco and backed by investors and operators including Andreessen Horowitz, Adverb, Broadway Restaurant Group and United Talent Agency. - Arc says the kickoff-to-pilot timeline is eight weeks.

Between the lines: - Branded Hospitality is betting that operator trust and industry media reach can help drive adoption of emerging restaurant technology. - Arc is pitching a practical use case for AI: measurable lift in sales and accuracy, not just labor replacement. - The messaging from both companies centers on augmentation, with technology supporting operator judgment instead of replacing it.

What's next: - Arc and Branded Hospitality will work together to expand Arc’s reach among restaurant operators. - The partnership could help Arc position drive-thru intelligence as a standard operating tool for multi-unit brands and innovation-focused operators. - More operators may test the platform if the reported gains hold up in live service environments.

The bottom line: - Branded Hospitality is putting its weight behind Arc’s pitch that the drive-thru can function as a measurable digital growth channel, not just a point of sale.