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 ordering at Taco Bell restaurants across the U.S., with plans to roll it out to all of its brands by 2024.
Yum Brands aims to become the world's leading digital restaurant company through technology acquisitions, building an integrated e-commerce ecosystem, expanding its use of AI, and investing in loyalty programs, AI technologies and its proprietary point-of-sale system.
In the second quarter of 2024, Yum! Brands reported 3% system sales growth worldwide, driven by 5% system sales growth at Taco Bell US and KFC International, beating Wall Street expectations for revenue and core earnings. Same-store sales declined 1%. Digital sales were nearly $8 billion, with digital mix exceeding 50%.
Taco Bell outperformed other Yum Brands chains in the second quarter thanks to the success of its value offers, with same-store sales up 5%, digital accounting for 35% of sales and loyalty program sales up more than 30%.
McDonald's maintained its position as the No. 1 quick-service restaurant chain in the U.S., ahead of Starbucks, Chick-fil-A and Taco Bell, despite a 0.7% decline in same-store sales, based on restaurant sales from March to May 2024, when the company offered a $5 value menu to attract customers hit by price hikes.
McDonald's has faced challenges with its AI technology for drive-thru ordering: The company ended its AI pilot program due to issues with handling customer accents and is looking for a new vendor for AI technology for its drive-thrus.
Other fast-food chains, including 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' Donuts, Burger King, Subway, Chipotle and Domino's, with Burger King rising to seventh place and Chipotle rising to ninth place.
Sources: Reuters, BusinessCheshire, QSR Magazine, NRN, PYMNTS, NorthJersey, News5Cleveland, ProactiveInvestors, Statesman, Spiceworks, BusinessWire, HeadTopics, Gorge News Center.
