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Yum Brands goes high-tech: AI set to reshape operations at Pizza Hut, KFC, and Taco Bell

KFC

KFC and Pizza Hut

Pizza Hut, KFC, and Taco Bell are set to significantly enhance their operations through the integration of artificial intelligence. Yum Brands, the parent company of these beloved fast-food chains, is fully embracing AI technology and intends to incorporate it into nearly every facet of their restaurant operations.

According to Yum’s Chief Digital and Technology Officer Joe Park, “our perspective on quick-service restaurants is centred around an AI-first approach throughout every process,” he said in a Wall Street Journal interview. “When assessing the important facets of restaurant operations that may gain benefit from AI, we see endless potential.”

AI technology is on its way to your local drive-thru, where voice AI systems are undergoing trials to handle order-taking duties instead of human employees. Additionally, there’s a pilot program for an AI-driven “SuperApp” designed for staff, enabling them to easily inquire about menu preparation methods instead of relying on cumbersome training manuals.

“You can achieve this with generative AI,” Park commented on the AI chatbot features being trialed for the SuperApp, which is utilized in over 8,700 Pizza Hut and KFC outlets.

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The SuperApp is conceived as a comprehensive “coach in your pocket,” as described by Park, for franchisees. From adjusting oven temperatures and scheduling shifts to ordering ingredients, this AI assistant has the potential to handle crucial tasks typically managed by human supervisors. Does this mean the end of the need for human managers?

The integration of AI might raise concerns for the employees crafting your Crunchwrap Supremes and Original Recipe chicken. Nonetheless, Yum asserts that its human workforce will continue to be essential, referring to the AI technology as an “opportunity to enhance the experiences of restaurant team members.”

A spokesperson from Yum informed The Journal that employees “will always play an essential role,” even with the extensive AI initiatives in place.

For the consumer, Yum’s AI initiatives could lead to a more personalized experience. The company has aggregated data from its various brands to formulate comprehensive customer profiles. This integrated data, the “secret sauce,” could enable AI systems to offer customized promotions and anticipate your cravings for your next meal.

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“We recognize that loyalty will be a crucial aspect of Yum’s future,” stated Park. “Each time we increase our digital sales, it brings along valuable customer data.”

However, not everyone is enthusiastic about AI being responsible for their fast food preparation. Some experts caution that existing generative AI could produce unsafe cooking instructions or mix ingredients in ways that could be potentially harmful.

However, for Yum, the benefits of boosting digital sales and reducing labor costs seem to outweigh the risks of AI potentially mishandling the fryer (at least for the time being). Since the pandemic, Yum has nearly doubled its digital sales to approximately $30 billion, accounting for 45% of total sales, as reported by Park. These online ordering figures provide Yum with even more motivation to intensify its focus on AI and automation to continue driving digital growth.

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