Yum! Brands, the parent company of KFC, Taco Bell, and Pizza Hut, has announced major advancements in its digital and technology initiatives, leading to significant growth in its global operations. The company reported that digital sales hit nearly $8 billion in the second quarter of 2024, accounting for 50 percent of its total sales.
KFC Sees Significant Digital Sales Increase
KFC has experienced a notable 20 percent rise in digital sales, excluding China. Sales through kiosks alone surged by 40 percent. This growth highlights KFC’s commitment to improving customer experiences through digital innovations.
Taco Bell’s Digital Growth
Taco Bell, which contributes 37 percent to Yum! Brands’ operating profit, has also seen rapid growth in its digital sales. In Q2, Taco Bell’s loyalty program drove a 30 percent increase in sales. The digital sales share for Taco Bell has reached 35 percent, allowing the brand to enhance operations, boost labor productivity, and improve experiences for both customers and staff.
New Leadership Appointments
To strengthen its brand strategy, Yum! Brands has appointed Kalen Thornton as the Global Chief Brand Officer for Pizza Hut. Thornton, a former PepsiCo executive, will oversee global brand strategy and marketing. Melissa Friebe has been named Chief Marketing Officer for Pizza Hut U.S., bringing 27 years of experience from Taco Bell.
Investments in Digital And AI Technologies
Yum! Brands is advancing its digital strategy by acquiring and developing platforms to better control its digital ecosystem and accelerate innovation. Key platforms being implemented include the Poseidon POS system, the Yum! e-commerce platform, Dragontail, the Super App, and a global data hub. These platforms are crucial for leveraging scale and driving innovation.
The company is also expanding its use of voice AI technology. This technology is now in over 100 Taco Bell locations and will be introduced in more locations by year-end. A pilot program is underway at KFC Australia. Voice AI aims to enhance customer experiences and improve productivity with digital menu boards, set to become standard at Taco Bell by 2025.
Lawrence Kim, Chief Innovation Officer at Yum! Brands, stated, “We’re accelerating our AI capabilities, like Voice AI, to enhance the consumer and team member experience.”
E-Commerce And Future Strategies
Yum! Brands is launching its Yum! e-commerce platform at Pizza Hut U.S. and transitioning it to Pizza Hut in the U.K. The next phase includes Pizza Hut Canada. This initiative aims to create a seamless digital experience across markets.
Despite global challenges, including consumer sentiment affected by the Middle East conflict, Yum! Brands achieved a 10 percent increase in core operating profit. This performance underscores the resilience of its multi-brand model and the value of its digital and technology investments.
In 2023, Yum! Brands’ digital sales approached $30 billion, with over 50 percent of sales coming through digital channels as of Q1 2024. The company’s digital business has more than doubled since 2019, reflecting the effectiveness of its digital strategy and its ability to meet evolving consumer needs.