How KFC, Pizza Hut will use AI in their operations
06 Jul 2025
Yum China Holdings, the company behind popular fast-food brands KFC and Pizza Hut in mainland China, is looking to leverage artificial intelligence (AI) to enhance its operating efficiency and profitability.
The move will also allow store managers to focus more on customer service.
The firm's Chief Technology Officer (CTO) Leila Zhang said the AI-powered system may assist with staff scheduling, inventory replenishment, and meal preparation.
A look at Q-Smart AI-powered assistant
AI implementation
Yum China introduced its Q-Smart AI-powered assistant in June. The system is designed to cut down on waste, improve quality, and also save labor costs.
It can also monitor the sales data, adjust preparation plans, and remind staff to confirm orders.
This is part of the company's long-standing tradition of innovation; it was the first mainland fast-food chain to adopt digital payment systems back in 2015.
Digital ordering made up 90% of total sales last year
Sales growth
Digital ordering accounted for nearly 90% of Yum China's total sales last year.
This was aided by a loyalty membership program that had around 540 million consumers in mainland China as of March 31.
The firm opened 247 new stores in the first quarter of this year, taking its total to a whopping 16,642 nationwide.
Yum China's annual sales for 2024
Financials
Yum China reported a 1% increase in sales to $2.98 billion in the first quarter from a year earlier.
Its adjusted net income also rose by 1.7% to $292 million during this period.
The company's annual sales for 2024 were reported at $11.3 billion, marking the highest since 2016 and indicating strong business growth.