Fast Food Goes AI: How KFC, Pizza Hut Plan To "Revolutionize" The Industry?

Yum! Brands, the parent company of popular chains like KFC, Pizza Hut, Taco Bell, and The Habit Burger Grill, is planning to invest heavily in technology and automation.

Outlook International Desk

Updated on: 2 April 2024 5:43 pm

Representative image Photo: X

To keep pace with the world moving towards artificial intelligence, Yum! Brands, the parent company behind popular chains such as KFC, Pizza Hut, Taco Bell, and The Habit Burger Grill, is embracing technology with plans for "AI-powered" fast food, as reported by The Wall Street Journal.

The company has significantly ramped up its investment in technology and automation, with approximately 45% of sales, totaling around $30 billion, now being generated digitally—nearly twice the amount recorded in 2019, revealed Joe Park, Yum's chief digital and technology manager, in an interview with the newspaper. This marks a substantial increase from the levels observed just two years ago.

"Our vision of quick-service restaurants is rooted in an AI-first mentality that permeates every aspect of operations," Park stated to The Wall Street Journal. "We believe the potential for AI-powered solutions spans across various critical restaurant functions."

As California's new minimum wage law, mandating a $20 hourly wage for most fast-food workers, came into effect on Monday, many restaurant operators are turning to AI as a means to curb expenses and bolster sales, according to the Journal's report. For industry titans like Yum, the integration of AI aims to extend beyond enhancing the customer experience.

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Yum has developed a mobile app called SuperApp for restaurant managers, as per The Wall Street Journal, which is currently experimenting with generative AI. This innovative feature allows team members to seek guidance on operational queries, such as oven temperature settings. Park elaborated that the app, presently utilized by over 8,700 Pizza Hut and KFC outlets, also facilitates ingredient procurement, employee shift scheduling, and boasts a new augmented reality function designed to aid in training workers on crafting new menu items.

While Yum's substantial investments in AI are supported in part by franchise owner fees, the exact amount remains undisclosed by the company.

The shift towards technological advancements in the fast-food industry has gained momentum since the onset of the COVID-19 pandemic, with many chains prioritizing digital ordering systems and enhancing drive-thru capabilities.

Despite concerns over the potential displacement of human workers by AI, a spokesperson from Yum reassured The Wall Street Journal that "its employees will always play a critical role" in the company's operations.