Yum! Brands, the parent company of Taco Bell, KFC, Pizza Hut, and Habit Burger Grill, is expanding the use of AI voice technology for drive-thru orders at Taco Bell locations across the US, with plans to implement it across all its brands by 2024.
Yum Brands aims to become a leading global digital restaurant company by leveraging technology acquisitions, building a unified e-commerce ecosystem, expanding the use of AI, investing in loyalty programs, AI technologies, and proprietary POS systems.
In Q2 2024, Yum! Brands reported a 3% worldwide system sales growth, beating Wall Street estimates for revenue and core profit, driven by Taco Bell US and KFC International’s 5% system sales growth. Same-store sales declined by 1%. Digital sales were nearly $8 billion, with a digital mix over 50%.
Taco Bell outperformed other Yum Brands chains in Q2, driven by successful value offerings, contributing to a 5% rise in comparable sales and a digital business accounting for 35% of sales, with loyalty program sales growing over 30%.
McDonald’s remained the No. 1 quick-service restaurant chain in the US despite a 0.7% drop in comparable sales, maintaining its top spot over Starbucks, Chick-fil-A, and Taco Bell, based on restaurant sales from March through May 2024, when McDonald’s offered a $5 value meal to attract customers affected by rising prices.
McDonald’s faced challenges with AI technology for drive-thru orders. The company ended an AI pilot program due to issues with processing customers’ accents and is seeking a new vendor for AI technology in its drive-thrus.
Other fast-food chains, such as KFC, Wendy’s, Carl’s Jr., and Hardee’s, are also experimenting with AI voice technology.
The top 10 quick-service restaurants in the U.S. based on total sales in 2024 include McDonald’s, Starbucks, Chick-fil-A, Taco Bell, Wendy’s, Dunkin’, Burger King, Subway, Chipotle, and Domino’s, with Burger King moving to No. 7 and Chipotle to No. 9.
Sources: Reuters, BusinessCheshire, QSR Magazine, NRN, PYMNTS, NorthJersey, News5Cleveland, ProactiveInvestors, Statesman, Spiceworks, BusinessWire, HeadTopics, Gorge News Center.
