Yum! Brands to Acquire Leading Omnichannel Ordering and Marketing Platform Company
Yum! Brands has acquired Tictuk Technologies, an Israeli omnichannel ordering and marketing platform. This acquisition enhances Yum!’s digital capabilities, allowing customers to order through popular social media channels such as WhatsApp and Facebook Messenger. With Tictuk's technology, the company aims to improve customer engagement and drive digital sales, which reached $17 billion in 2020, a 45% increase year-over-year. Yum! plans to deploy Tictuk’s platform globally, building on its strategy of enhancing restaurant economics and customer experiences.
- Acquisition of Tictuk enhances digital ordering capabilities through social media platforms.
- Expected to improve customer engagement and increase conversion rates.
- Yum! Brands estimates significant growth in digital sales through new technologies.
- Potential challenges in integrating Tictuk's technology with existing systems.
- Acquisition impact on 2021 results expected to be immaterial, limiting immediate benefits.
Yum! Brands, Inc. (NYSE: YUM) today announced that it has acquired Tictuk Technologies, a leading Israeli omnichannel ordering and marketing platform company. The addition of Tictuk to Yum! Brands’ technology portfolio will give the Company the ability to offer more ways for consumers globally to access and order its KFC, Pizza Hut, Taco Bell and The Habit Burger Grill brands through some of the world’s most popular social media and conversational platforms. Today’s announcement marks Yum! Brands’ second technology investment this month to continue accelerating its digital innovation strategy.
Founded in 2016, Tictuk is a privately held company based in Tel Aviv, Israel, that specializes in conversational commerce, a technology solution that allows users to complete orders and interact with brands through a variety of social media and chat channels, including WhatsApp, Facebook Messenger, Telegram, SMS, QR codes, and email. Tictuk’s online ordering and marketing platform also leverages a hybrid of chat, web, advertisements, and intelligent marketing technology to engage with consumers. The technology seamlessly integrates with POS and existing payment systems and works for all types of customer engagement including delivery, curbside pick-up and in-restaurant dining.
“As we navigate a consumer landscape reshaped by the events of 2020, we continue to intensify our focus on leveraging our scale and reinforcing our growth model with investments in digital and technologies to enhance the customer and employee experience, strengthen restaurant unit economics and enable our brands and franchisees to compete and win in a rapidly changing world,” said David Gibbs, Chief Executive Officer, Yum! Brands.
In 2020, Yum! Brands’ digital sales hit a record of
“The right technologies will allow us to better serve customers with the best offer and delicious food in a way that’s most convenient for them,” said Chris Turner, Chief Financial Officer, Yum! Brands. “We’re excited about the opportunity Tictuk presents, as their solution delivers high impact by enabling our brands to achieve a truly omnichannel presence and provide frictionless ordering for customers in just a few clicks.”
Yum! Brands has successfully deployed Tictuk’s platform in approximately 900 KFC, Pizza Hut and Taco Bell restaurants in 35 countries outside of the U.S. The Company plans to scale and offer Tictuk’s omnichannel ordering and marketing capabilities to more markets and franchisees globally to deliver more ways for consumers to access its brands through social media and other conversational commerce channels.
“Tictuk has a proven track record of driving increased conversion, loyalty and sales by making it even easier for customers to order our brands through their preferred social media or conversational channel,” said Clay Johnson, Chief Digital and Technology Officer, Yum! Brands. “With Tictuk, we’re able to offer our franchisees around the world an incredibly effective omnichannel ordering system that can be customized to every market’s needs and implemented within just a few days. We’re thrilled to have Tictuk join the growing Yum! technology portfolio, allowing us to offer more frictionless ordering experiences for our customers.”
“Omnichannel ordering creates new opportunities for relevant and intimate engagement with customers and gives brands the ability to reach a wider audience. By developing an ecosystem that synergizes ordering technology with performance marketing and analytics, we are empowering brands to better serve customers and increase sales,” said Tomer Ben-Ezra, Founder and Chief Executive Officer, Tictuk. “We’re delighted to expand our relationship with Yum! Brands and join its family of global category-leading brands.”
The Tictuk business unit, as part of Yum! Brands, will continue to offer its platform to existing clients. With today’s announcement, Yum! Brands’ acquisition of Tictuk is complete.
The addition of Tictuk to the Yum! portfolio builds on the Company’s recent technology investments. Earlier this month, Yum! Brands announced that it has entered into a definitive agreement to acquire the Kvantum business, an artificial intelligence-based consumer insights and marketing performance analytics company. Kvantum’s proprietary technology, combining machine learning and econometric modeling into its Marketing Performance Analytics Platform in a seamless manner, can measure the effects of marketing tactics in a designated geography across owned, paid and earned channels. Yum! Brands has been working with Kvantum in several international markets and plans to leverage its services globally to enhance the Company’s ability to apply powerful consumer insights and data analytics to enable data-driven marketing decisions to increase sales and better leverage media budgets. Yum! Brands’ acquisition of the Kvantum business is expected to close by the end of the first quarter of 2021, subject to standard closing conditions.
Yum! Brands estimates that both of these all-cash acquisitions will have an immaterial impact to its 2021 financial results, and should accelerate the Company’s ability to grow digital sales as they are deployed over time in markets around the world.
About Yum! Brands
Yum! Brands, Inc., based in Louisville, Kentucky, has over 50,000 restaurants in more than 150 countries and territories primarily operating the company’s brands – KFC, Pizza Hut and Taco Bell – global leaders of the chicken, pizza and Mexican-style food categories. The Company’s family of brands also includes The Habit Burger Grill, a fast-casual restaurant concept specializing in made-to-order chargrilled burgers, sandwiches and more. Yum! Brands was included on the 2021 Bloomberg Gender-Equality Index and in 2020, was named to the Dow Jones Sustainability Index North America and was ranked among the top 100 Best Corporate Citizens by 3BL Media.
Cautionary Statement Regarding Forward-Looking Statements
Certain statements in this communication contain “forward-looking statements.” Forward-looking statements can be identified by the fact that they do not relate strictly to historical or current facts. Forward-looking statements are based on current expectations, estimates, assumptions or projections concerning future results or events, including, without limitation, the anticipated benefits of the transaction, and the future earnings and performance of Yum! Brands or any of its businesses. Forward-looking statements are neither predictions nor guarantees of future events, circumstances or performance and are inherently subject to known and unknown risks, uncertainties and assumptions that could cause actual results to differ materially from those indicated by those statements. We cannot assure you that any of the expectations, estimates or projections expressed herein will be achieved. Numerous factors related to the transaction could cause actual results and events to differ materially from those expressed or implied by forward-looking statements, including, without limitation: the effect of the announcement of the proposed transaction on Yum!’s and Tictuk’s business relationships, operating results and business generally; the risk that the proposed transaction may disrupt current plans and operations and potential difficulties in employee retention as a result of the proposed transaction; the ability to achieve the synergies and value creation contemplated; Yum!’s ability to promptly and effectively integrate Tictuk’s business; the risk that operating costs and business disruption (including, without limitation, difficulties in maintaining relationships with employees and other third parties) may be greater than expected; the assumption of unexpected risks and liabilities; the outcome of any legal proceedings that may be instituted related to the proposed transaction; and the other factors discussed in “Risk Factors” in Yum!’s Annual Report on Form 10-K for the fiscal year ended December 31, 2020 and subsequent filings with the SEC made by Yum! which are available at http://www.sec.gov. Yum! assumes no obligation to update the information in the communication, except as otherwise required by law. Accordingly, you should not place undue reliance on these forward-looking statements.
View source version on businesswire.com: https://www.businesswire.com/news/home/20210324005416/en/
FAQ
What is the significance of Yum acquiring Tictuk Technologies?
When was Tictuk Technologies acquired by Yum! Brands?
How will Tictuk's technology impact Yum! Brands' operations?
What were Yum! Brands' digital sales figures before acquiring Tictuk?
Will the Tictuk acquisition directly affect Yum! Brands' financial results?
