KFC, Pizza Hut operator Yum China embraces AI to boost efficiency, profitability
The firm, which introduced its Q-Smart AI-powered assistant in June, was expected to help reduce waste, improve quality and save labour costs, chief technology officer (CTO) Leila Zhang said in an interview. The
AI-powered system could help with staff scheduling, inventory replenishment and meal preparation, she added.
'When we think about AI and robotics, one of our primary considerations is to empower our restaurant managers,' she said. 'We develop systems and AI-powered digital tools to allow them to work more efficiently, freeing up more of their time so they can focus on delivering exceptional customer service.'
Yum's Q-Smart management system was able to monitor sales data, adjust preparation plans, and remind staff to confirm orders, Zhang said, a move in line with its past pioneering efforts. Yum China was the first mainland fast-food chain to adopt digital payment systems in 2015.
A couple walks out of a KFC restaurant in Chongqing in February 2025.
Digital ordering accounted for about 90 per cent of its total sales last year, helped by a loyalty membership programme that had 540 million consumers in mainland China as of March 31. It opened 247 net new stores in the first quarter this year, bringing the total to 16,642 nationwide.
Yum China reported a 1 per cent increase in sales to US$2.98 billion in the first quarter from a year earlier, while adjusted net income rose 1.7 per cent to US$292 million. Annual sales in 2024 of US$11.3 billion were the highest since at least 2016.
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