How Can AI Drive KFC, Pizza Hut and Taco Bell into the Future?

Over the past two years I’ve been particularly interested in one question: Which large companies have genuinely rolled out and effectively applied artificial intelligence in their daily operations? Every day we read a flood of AI news, visions and demo videos, but what matters most to management is how an enterprise actually deploys, executes and verifies the effectiveness of AI. My recent deep dive into Yum! Brands’ technology platform Byte by Yum strengthened my belief in the integration of AI and business operations. This isn’t a concept on paper but a transformation happening in more than 60 thousand restaurants around the world.

Fourteen years ago I opened a conceptual organic restaurant and tried to blend technology with logistics to implement a “farm‑to‑table” operating model. I used e‑commerce systems to link local farms and thought hard about how to optimise ordering and payment processes. Although AI was not prevalent at the time, my pursuit of data‑driven operating efficiency echoes the spirit of Byte by Yum today.

A GLOBAL GIANT FACING COMPLEXITY

Yum! Brands is one of the world’s largest restaurant groups. Under its umbrella are KFC, Pizza Hut, Taco Bell and The Habit Burger Grill. The group operates in more than 150 countries and manages over 59 000 restaurants. To unify such a vast operation, Yum launched Byte by Yum in 2025, an AI‑powered platform built specifically for their global stores. The goal is to make all operating processes systematic, data‑driven and automated.

Byte by Yum consolidates the different software tools previously used by each brand—POS systems, inventory management, staff scheduling, delivery dispatch and digital ordering—into a single SaaS platform. This not only reduces management cost but makes technology upgrades and data sharing across global deployments far simpler. Byte is already live in over 25 000 restaurants worldwide, covering all of Yum’s U.S. brands, and it has processed more than 300 million digital orders.

AI IN ACTION

From a technical perspective, Byte by Yum uses AI models spanning machine learning, predictive analytics, computer vision and natural language processing. In supply‑chain management it forecasts raw‑material demand and ordering times based on store‑level sales history, holidays and promotions. This reduces waste and prevents stock‑outs, enabling managers to make decisions based on data rather than intuition.

In the kitchen and delivery domain, Yum incorporated the Dragontail smart kitchen management system (acquired in 2021) into Byte. The system analyses orders, ingredients and delivery distances, automatically schedules preparation sequences and delivery routes, and ensures products leave the kitchen at the best possible quality and timing. According to Yum’s statistics, stores that adopted Dragontail saw significant improvements in customer satisfaction and product quality.

In human‑resource management Byte offers AI‑driven scheduling tools. Using traffic forecasts and labour requirements it helps managers allocate staffing, improving efficiency and reducing labour costs. Yum even deployed an “AI restaurant coach” that can proactively propose process improvements based on operating data and help staff maintain standards under complex conditions.

For the customer experience, Byte supports unified mobile apps and online ordering platforms where guests can customise items, schedule pickup and receive real‑time promotions. The data enable brands to offer personalised recommendations and loyalty rewards. At Taco Bell, for example, Byte powers mobile ordering, self‑pickup and personalised app recommendations, resulting in a 30% increase in member engagement.

Yum is also investing heavily in AI‑driven voice ordering. Partnering with NVIDIA, Yum built drive‑thru voice systems on the Riva platform that recognise different English accents, quickly process orders, offer upsell suggestions and reduce labour and error rates. Preliminary data show these AI systems shorten drive‑through waits by 10–20%. In Mexico, Yum introduced a WhatsApp chat‑ordering service (Tictuk technology) with over 90% of users placing digital orders. The system provides order‑status tracking, smart recommendations and customer‑segmentation analytics, allowing the brand to adjust marketing in real time.

DIGITAL SALES ARE EXPLODING

By 2024 Yum’s digital order volumes were hitting record highs. In the second quarter global digital sales exceeded US$8 billion, accounting for nearly half of total sales. KFC’s digital sales (excluding China) rose 20% year‑over‑year, and self‑service kiosks in the United States were used 40% more. These numbers show that Byte is not just boosting efficiency; it has become a major engine for revenue growth.

WHY YUM’S AI STRATEGY WORKS

In my view, Yum’s success rests on three pillars:

1. Build a unified yet flexible platform. Many companies buy digital tools department by department, leading to fragmented systems and difficult upgrades. Yum uses Byte to integrate its brands, ensuring data connectivity and modular reuse while still allowing each market to activate different functions as needed.
2. Balance open innovation with internal control. Yum collaborates with technology partners such as NVIDIA and AWS to accelerate experiments, but retains the capability to train and deploy key models in house. This safeguards long‑term sustainability and data ownership.
3. Solve real problems instead of chasing technology. Yum doesn’t pursue “the strongest model” or “the most advanced algorithm.” It starts with questions like How do we reduce long lines?, How do we curb inventory waste?, How do we retain new customers? By breaking problems down and improving them one by one, Yum shows an AI adoption logic worth emulating.

Byte by Yum is not just a technical project; it is a holistic upgrade that spans technology, operations and organisational collaboration. As AI moves from the laboratory into the back kitchen and even the drive‑through window, AI assistants help schedule staff, offer guest recommendations and support managers’ decisions. The entire business world is entering a new phase of AI‑enabled operations.

I believe AI is redefining what “efficiency” means. Yum’s case demonstrates that with the right strategy, traditional industries can still lead the wave of AI. For every business leader, the challenge is no longer whether AI can be done but whether we are prepared to make the most of it.