Yum! Brands to Expand Voice AI Technology to Hundreds of Taco Bell U.S. Drive-Thru Locations in 2024, with a Future Vision to Bring the Technology to Its Brands’ Drive-Thrus Around the World

Rhea-AI Summary

Yum! Brands (NYSE: YUM) is expanding Voice AI technology across Taco Bell drive-thru locations in the U.S., aiming to reach hundreds of stores by the end of 2024. The company plans to implement this technology globally in the future. Currently deployed in over 100 Taco Bell U.S. drive-thrus across 13 states, the Voice AI system is designed to:

• Enhance back-of-house operations
• Improve order accuracy
• Reduce wait times
• Drive profitable growth

The technology integrates with Taco Bell's digital menu boards, Yum! Brands' Poseidon POS system, and the upcoming Taco Bell Rewards loyalty program. In 2023, Yum!'s digital sales approached $30 billion, with over 50% of sales coming through digital channels in Q1 2024.

Positive

• Expansion of Voice AI technology to hundreds of Taco Bell U.S. drive-thrus by end of 2024
• Potential for global implementation across Yum! Brands
• Improved order accuracy and reduced wait times
• Integration with existing digital ecosystem
• Digital sales approached $30 billion in 2023
• Over 50% of sales through digital channels in Q1 2024

Negative

• None.

Tech Expert

Yum! Brands' expansion of Voice AI technology in Taco Bell drive-thrus marks a significant step in the fast-food industry's digital transformation. This move aligns with the broader trend of AI integration in customer-facing operations, potentially setting a new standard for quick-service restaurants.

The technology's ability to improve order accuracy and reduce wait times could lead to increased customer satisfaction and loyalty. However, the real game-changer lies in its potential to optimize back-of-house operations. By easing the task load for team members, Voice AI could help address labor shortages and improve employee retention - a critical issue in the fast-food sector.

From a technological perspective, the integration of Voice AI with Taco Bell's existing digital ecosystem - including digital menu boards, the Poseidon POS system and the upcoming loyalty program - creates a comprehensive digital infrastructure. This holistic approach could provide Yum! Brands with valuable data insights, enabling more personalized customer experiences and informed business decisions.

The global ambition to implement this technology across all Yum! Brands' drive-thrus worldwide indicates a long-term commitment to AI-driven operations. This could potentially lead to significant cost savings and operational efficiencies at scale, provided the technology proves consistently reliable across different markets and languages.

However, it's important to monitor potential challenges such as customer acceptance, especially among older demographics and the system's ability to handle complex orders or unusual requests. The success of this rollout could influence AI adoption trends across the entire quick-service restaurant industry.

Financial Analyst

Yum! Brands' investment in Voice AI technology for Taco Bell drive-thrus presents a compelling case for potential long-term value creation. The company's digital sales approached $30 billion in 2023, with over 50% of sales coming through digital channels in Q1 2024. This robust digital growth trajectory suggests that the Voice AI integration could further accelerate this trend.

The expansion to hundreds of Taco Bell locations by the end of 2024 indicates a significant capital expenditure. While this may impact short-term profitability, the long-term benefits could be substantial. Improved order accuracy and reduced wait times could drive higher customer satisfaction, potentially leading to increased visit frequency and average ticket size.

From an operational standpoint, the technology's ability to ease task loads for team members could result in labor cost optimizations. This is particularly relevant given the current inflationary pressures on wages in the fast-food industry. Moreover, by freeing up staff to focus on hospitality, Taco Bell could enhance its competitive positioning in a crowded market.

The global ambition for this technology across all Yum! Brands suggests economies of scale could be achieved in the long run. This could lead to improved margins across the company's portfolio, not just for Taco Bell. However, investors should be mindful of the initial investment required and potential implementation challenges across different markets.

While the immediate financial impact may be , the long-term potential for revenue growth, cost savings and improved profitability makes this a noteworthy development for Yum! Brands' future performance. Investors should closely monitor the rollout's progress and its impact on key financial metrics in the coming quarters.

The Company’s expansion of Voice AI will modernize its drive-thrus and elevate the experience for consumers and restaurant team members alike

LOUISVILLE, Ky.--(BUSINESS WIRE)-- Yum! Brands, Inc. (NYSE: YUM) announced today the expansion of Voice AI technology across Taco Bell drive-thru locations in the U.S., targeting hundreds of stores by the end of 2024. The Company aspires to implement Voice AI technology in drive-thrus at its brands globally in the future.

Yum! Brands to Expand Voice AI Technology to Hundreds of Taco Bell U.S. Drive-Thru Locations in 2024, with a Future Vision to Bring the Technology to Its Brands’ Drive-Thrus Around the World (Photo: Business Wire)

The rollout of Voice AI technology in Taco Bell, currently in more than 100 Taco Bell U.S. drive-thrus across 13 states, is designed to enhance back-of-house operations for team members and elevate the order experience for consumers. Benefits include easing task load for team members, improving order accuracy, providing a consistent, friendly experience, and reducing wait times, while driving profitable growth for Taco Bell, Yum! Brands and their franchisees.

“Yum! Brands is integrating digital and technology into all aspects of our business with exciting new capabilities, and AI is a core piece of that strategy,” said Lawrence Kim, Chief Innovation Officer, Yum! Brands. “We’re expanding and accelerating our AI capabilities like Voice AI to deliver leading-edge technologies to our franchisees and to enhance the consumer and team member experience. With over two years of fine tuning and testing the drive-thru Voice AI technology, we’re confident in its effectiveness in optimizing operations and enhancing customer satisfaction.”

Yum! Brands and Taco Bell have collaborated closely, including incorporating input from Taco Bell franchisees, so that Voice AI benefits both team members and consumers. This technology takes advantage of Taco Bell’s strong drive-thru customer experience ecosystem, which is powered by digital menu boards, Yum! Brands’ propriety Poseidon POS system and the next generation of the Taco Bell Rewards loyalty program which the brand is excited to integrate later this year. The Voice AI technology uses a holistic approach that leverages feedback, data, and insights to enhance consumer relationships with an emphasis on intuitive, user-friendly technology to create a seamless ordering experience.

“Innovation is ingrained in our DNA at Taco Bell, and we view Voice AI as a means to improve the team member and consumer experiences,” said Dane Mathews, Chief Digital & Technology Officer, Taco Bell. “Tapping into AI gives us the ability to ease team members’ workloads, freeing them to focus on front-of-house hospitality. It also enables us to unlock new and meaningful ways to engage with our customers.”

In addition to the expansion of Voice AI across Taco Bell U.S. drive-thrus, five KFC restaurants in Australia are simultaneously testing Voice AI technology in drive-thrus, which is also being positively received by consumers and restaurant team members.

Yum! Brands has been both acquiring and creating technologies, and in select cases working with leading partners, powered by its global scale that enable and accelerate easy experiences, operations and insights for consumers and team members while driving profitable growth for franchisees. The Company has made massive strides in scaling its proprietary digital and AI-driven ecosystem in partnership with franchisees, equipping them with distinctive capabilities to differentiate its brands.

2023 marked a significant milestone for successfully scaling Yum! Brands' suite of proprietary technologies globally. In 2023, Yum!’s digital sales approached $30 billion with over 50% of its sales coming through digital channels as of the first quarter of 2024. The Company’s digital business has more than doubled since 2019, demonstrating the power of its digital ecosystem and capabilities to meet changing consumer needs around the world.

About Yum! Brands

Yum! Brands, Inc., based in Louisville, Kentucky, and its subsidiaries franchise or operate a system of over 59,000 restaurants in more than 155 countries and territories under the company’s concepts – KFC, Taco Bell, Pizza Hut and the Habit Burger Grill. The Company's KFC, Taco Bell and Pizza Hut brands are global leaders of the chicken, Mexican-style food, and pizza categories, respectively. The Habit Burger Grill is a fast casual restaurant concept specializing in made-to-order chargrilled burgers, sandwiches and more. In 2024, Yum! was named to the Dow Jones Sustainability Index North America for the eighth consecutive year, and the company was recognized among TIME Magazine’s list of Best Companies for Future Leaders, Newsweek’s list of America’s Most Responsible Companies and USA Today’s America’s Climate Leaders. Yum! also received widespread recognition in 2023, including being listed on the Bloomberg Gender-Equality Index; and Forbes’ list of America’s Best Employers for Diversity. In addition, KFC, Taco Bell and Pizza Hut brands were ranked in the top five of Entrepreneur’s Top Global Franchises Ranking for 2023.

About Taco Bell Corp.

For more than 61 years, Bell has brought innovative, craveable Mexican-inspired food to the masses, and was recently recognized as one of Fast Company’s World’s Most Innovative Companies, one of TIME’s Most Influential Companies, and Nation’s Restaurant News’ Brand Icon. For more information about Taco Bell, visit our website at www.TacoBell.com, our Newsroom at www.TacoBell.com/news, or check out www.TacoBell.com/popular-links. You can also stay up to date on all things Taco Bell by following us on LinkedIn, TikTok, X (formerly Twitter), Instagram, Facebook and by subscribing to our YouTube channel.

View source version on businesswire.com: https://www.businesswire.com/news/home/20240731239498/en/

Members of the media are invited to contact:

Rick Maynard, Yum! Brands, at 502-874-8200 or rick.maynard@yum.com



Natalie Hochberg, Taco Bell, 949-863-3915 or natalie.hochberg@yum.com

Source: Yum! Brands, Inc.

FAQ

How many Taco Bell U.S. drive-thrus currently use Voice AI technology?

Voice AI technology is currently deployed in over 100 Taco Bell U.S. drive-thrus across 13 states.

What are the benefits of Voice AI technology for Taco Bell restaurants?

Benefits include easing task load for team members, improving order accuracy, providing a consistent experience, reducing wait times, and driving profitable growth for Taco Bell, Yum! Brands (YUM), and their franchisees.

How much were Yum! Brands' digital sales in 2023?

Yum! Brands' digital sales approached $30 billion in 2023, with over 50% of sales coming through digital channels as of the first quarter of 2024.

Is Yum! Brands (YUM) planning to expand Voice AI technology to other brands?

Yes, Yum! Brands is testing Voice AI technology in five KFC restaurants in Australia and plans to implement it in drive-thrus at its brands globally in the future.