Taco Bell and Pizza Hut are going ‘AI-first,’ Yum’s new tech chief says
Yum Brands has a vision for “AI-powered" fast-food in which artificial intelligence shapes nearly every aspect of how its Taco Bell, Pizza Hut, KFC and Habit Burger Grill restaurants are run. Led by Joe Park, Yum’s new chief digital and technology officer, the fast-food giant has been increasing its investment in technology and automation.
About 45%, or about $30 billion, of Louisville, Ky.-based Yum’s sales are digital, Park said, roughly double the level in 2019. “Our vision of [quick-service restaurants] is that an AI-first mentality works every step of the way," Park said in an interview.
“If you think about the major journeys within a restaurant that can be AI-powered, we believe it’s endless." The company declined to say how much it is spending on technology. A Feb.
7 earnings report showed $21 million last year, up from $11 million in 2022, for charges associated with a resource optimization program Yum said helped reallocate resources to “accelerate our digital, technology and innovation capabilities." Since the pandemic, fast-food chains have increased investing in technologies like digital ordering and more drive-throughs, betting those trends will last. Now, pressured by higher labor costs—including California’s new minimum wage law—and inflation-weary customers, more fast-food operators are banking on AI to drive sales and help lower costs.
The explosive growth of generative AI, which has already made its way into sectors like healthcare and retail, is further accelerating the pace at which fast-food chains embrace cutting-edge technologies. Park joined Yum in 2020 as its first chief innovation officer, before moving to Pizza Hut Global as chief digital and technology officer, where he oversaw the rollout of
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