Depending on the perspective and definition used, opinions on artificial intelligence (AI) may vary regarding its utility. However, the prevalence of AI hype in corporate marketing, including the fast-food industry, is undeniable. Yum Brands, a major player in the fast-food sector encompassing Taco Bell, Pizza Hut, KFC, and Habit Burger Grill, is wholeheartedly embracing an “AI-first mentality” as per a report by The Wall Street Journal. Joe Park, the company’s chief digital and technology officer, emphasized that AI will significantly influence the operational dynamics of these restaurant chains.
Park articulated, “Our vision of quick-service restaurants entails an AI-first approach at every operational juncture,” underscoring the pervasive nature of AI integration within their business model. The company’s strategic focus on technology and automation has already yielded results, with a substantial 45 percent of sales originating from online and app-based orders and deliveries. The primary objective behind leveraging AI is to tailor customer experiences through personalized offers, thereby driving sales growth and attracting new clientele.
Furthermore, Park envisions an AI-saturated future for Yum’s restaurants, spanning from AI-assisted franchisee support to AI-driven kitchen management and delivery systems. An innovative ChatGPT-like chatbot is currently undergoing testing within an internal mobile app utilized by restaurant managers for operational oversight. This tool aims to empower team members to seek operational guidance directly from the app, streamlining processes and enhancing efficiency.
Yum Brands is also exploring the application of generative AI in customer-facing scenarios, including voice AI for drive-through orders and image recognition for monitoring vehicle flow and wait times. The company’s foray into dynamic pricing and AI-driven order processing mirrors industry trends, albeit with some initial public resistance to fluctuating food prices. Moreover, Yum is delving into the realm of digitally interconnected kitchen appliances to further optimize operational workflows, showcasing a comprehensive AI deployment strategy across various facets of their business operations.
Despite apprehensions surrounding job displacement due to AI and automation in the fast-food sector, Yum Brands reassures that their workforce will remain integral to the company’s functioning. The company emphasizes the potential of technology to enhance the overall experience of restaurant team members, indicating a balanced approach towards AI integration and human capital within their operational framework.
