Yum Brands remains bullish on technology as a key driver of growth and operational efficiency.
In its latest earnings call, the company, home to brands such as Taco Bell, KFC, and Pizza Hut, shared its ambition to become “a leading digital restaurant company” spotlighting its tech acquisitions and AI investments.
Chief Financial Officer Chris Turner discussed the deployment of several platforms, including the Poseidon POS system, the Yum Commerce Platform, SuperApp, Global Data Hub and Dragontail.
Yum Brands acquired Dragontail in 2021, an AI-driven restaurant management system, set to roll out across all Pizza Hut locations in the U.S. by year-end. Its AI-based solution automates the kitchen flow and driver dispatch processes. Yum’s Poseidon POS is fully operational in Taco Bells in the U.S. and is in the early stages of being implemented at KFC locations in the U.S.
Digital sales continue to be a major revenue driver for the multi-brand giant, which reported almost $8 billion in digital sales for Q2, with a digital mix exceeding 50 percent. Taco Bell’s loyalty program saw a 30 percent increase year-over-year. KFC’s digital sales, not including China, grew by 20 percent, while kiosk sales were up 40 percent.
Voice AI: the next frontier
Looking ahead, Yum Brands is enthusiastic about the potential of voice AI. The company is introducing voice AI ordering in hundreds of Taco Bell drive-thrus in the U.S. by the end of the year. A handful of KFC locations in Australia are also testing the technology.
“Innovation is ingrained in our DNA at Taco Bell, and we view Voice AI as a means to improve the team member and consumer experiences,” said Dane Mathews, chief digital & technology officer, at Taco Bell in a statement announcing the rollout.
As competitors like McDonald’s rethink their drive-thru tech strategies, Yum Brands continues to go all-in.
“Yum Brands is integrating digital and technology into all aspects of our business with exciting new capabilities, and AI is a core piece of that strategy,” said Lawrence Kim, chief innovation officer of Yum Brands in a statement. “With over two years of fine-tuning and testing the drive-thru Voice AI technology, we’re confident in its effectiveness in optimizing operations and enhancing customer satisfaction.”
Yum Brands did not immediately respond for additional comment.
