Yum Brands, the parent company of Taco Bell, Pizza Hut, KFC, and The Habit Burger Grill, ramped up its investment in digital, technology, and innovation capabilities in 2023, doubling its spending to $21 million from the previous year’s $11 million, The Wall Street Journal (WSJ) reported on Monday (April 1).
One significant area of investment for the company is its mobile app for restaurant managers, known as SuperApp, the report highlighted. Yum Brands is currently testing a generative AI feature within the app to provide answers to employees’ queries, streamlining operational processes without the need for extensive training materials or navigating complex interfaces.
Additionally, the company aims to broaden the app’s functionalities to include tasks such as ingredient ordering, shift scheduling, and employee training through augmented reality (AR) technology, according to the report.
Yum Brands is also experimenting with various AI-driven initiatives, including voice AI for drive-thru order-taking, image-recognition AI for monitoring drive-thru traffic, and digital tools for kitchen appliance management, as outlined in the report.
Presently, approximately 45% of the company’s orders are placed digitally, reflecting the growing preference for digital channels among consumers, the report noted.
Behind the scenes, Yum Brands leverages AI technology for tasks such as optimizing inventory management, menu offerings, pricing strategies, and delivering personalized offers to customers based on data insights, the report added.
These investments come at a crucial time when digital ordering and drive-thru channels are becoming increasingly popular, labor costs are on the rise, and AI technology is being integrated into various industries to drive efficiency, the report emphasized.
According to research conducted by PYMNTS Intelligence and AI-ID, 78% of business leaders in the retail sector consider generative AI as the most impactful emerging technology in the next three to five years, underscoring the growing importance of AI-driven solutions in driving business performance.
In a similar move within the quick-service restaurant (QSR) sector, McDonald’s announced in December 2023 its partnership with Google Cloud to leverage generative AI and cloud technology to enhance operational efficiency and customer experience.