Yum! Brands is one of the largest quick-service restaurant companies. With a portfolio of brands that include KFC, Taco Bell, Pizza Hut, and The Habit Burger & Grill, the company has over $60 billion in system sales and more than 60,000 restaurants spanning 155 countries. The company has been on a digital transformation journey for a number of years, and the current leader of that transformation is Joe Park, the President of Digital and Restaurant Technology Ecosystem and Chief Digital and Technology Officer at Yum! Brands. With a background that includes leading digital efforts at Pizza Hut, Park has been instrumental in driving the company’s technological innovation. His approach reflects a deep understanding of both technology and the nuanced challenges of the quick-service restaurant industry.
The Digital Transformation Journey
When Park reflected on Yum! Brands’ digital evolution, he highlighted a remarkable transformation. “Back in 2019, we were averaging about 19% in digital sales,” he noted. “Fast forward to today, we’re over 50%.” This shift has fundamentally changed how the company approaches technology, turning it from a supportive function to a core business strategy.
The digital transition hasn’t been just about implementing new technologies, but about creating a comprehensive ecosystem that serves multiple stakeholders. “We’re essentially running more of an e-commerce business than not,” Park explained, referencing the proliferation of third-party food aggregators, in-restaurant hardware like tablets and kiosks and the complex array of digital tools modern restaurants must manage.
The company’s approach to technology is strategic and nuanced. Park explained the philosophy as “build or buy” when it comes to core technologies. “We want to be acquisitive when it comes to technologies that are fundamental to our business,” he said, citing point-of-sale systems, e-commerce platforms and kitchen management systems as prime examples. For emerging technologies and cutting-edge innovations, they prefer to partner with specialized providers.
Innovation in Customer Experience
One of the most visible innovations has been the rollout of kiosks across KFC and Taco Bell restaurants. Park shared an impressive statistic: kiosks can drive a sales uplift ranging from 18% to 30% depending on the market. “Customers can customize their orders at their own pace,” he explained, highlighting how technology can enhance the dining experience.
The kiosks offer more than just transactional efficiency. Park pointed out unique features like dietary preference toggles, where the screen can change color and filter menu options based on customer needs. This means easily customizing orders and potentially improving franchise margins.
The company has also explored cutting-edge technologies like voice AI. Interestingly, their initial motivation of potentially reducing labor costs transformed into something more meaningful. “We discovered that voice AI is actually making jobs easier for team members and decreasing attrition,” Park said.
An AI-First Approach
Yum! Brands has committed to an “AI-first” strategy, but with a critical caveat. “It’s not AI everywhere,” Park emphasized. The company has even partnered with Harvard Business School to develop an AI and digital mindset curriculum for their top 200 leaders, spanning divisions like Technology, Marketing, Operations and Finance.
Voice AI represents a prime example of their approach. Park shared a revealing anecdote about a Taco Bell restaurant manager who understood that AI needs time to learn. “She let the AI make mistakes, treating it like a learning child,” he recalled, underscoring the importance of human-technology collaboration. By letting it make mistakes, it learned from them faster than if it had not been allowed to make them.
This nuanced approach extends to their broader AI strategy. “We fully understand that before you even talk about the technology, we have to make sure that we understand what AI is and understand its limits,” Park explained. The goal is to solve real business problems with a comprehensive understanding of AI’s potential and constraints.
Supporting Restaurant Operations
Technology isn’t just about customer-facing innovations. The company has developed a “SuperApp” for restaurant managers, digitizing routine operations like food safety checks, temperature monitoring and shift management. An upcoming feature will integrate customer feedback directly into the app, providing dynamic recommendations for improving service and food preparation.
Another acquisition, Dragontail, uses AI to optimize kitchen operations, helping manage complex order sequences during busy periods. The system can intelligently sequence pizza preparation, determine optimal delivery routes, and ensure food remains at the right temperature—essentially acting as an “air traffic control” for restaurant operations.
A Collaborative Technology Ecosystem
Park stressed the importance of collaboration across different stakeholders. “We have customer advisory councils, technology committees with franchisees and multiple layers of checks and balances,” he explained. This approach ensures that technological innovations genuinely serve the needs of customers, team members, and franchise owners.
The company leverages its global presence as a unique research and development opportunity. “Because we’re in over 155 markets with four brands, it feels like we’re sitting in the world’s largest QSR R&D center,” Park said. Franchisees can experiment with various third-party technologies, providing Yum! Brands with invaluable insights into emerging trends and solutions.
Looking to the Future
As Yum! Brands looks towards 2025 and beyond, generative AI remains a key focus. “It feels like we’re still in the MySpace era of AI,” Park said, suggesting the Facebook equivalent may include future innovations in areas like food innovation, marketing and support automation.
Potential applications include generating marketing content, supporting product development and creating more sophisticated self-service support systems. However, the company remains committed to implementing these technologies responsibly, working closely with legal and governance teams.
Park and Yum! Brands demonstrate that in the modern restaurant industry, technology is no longer a supporting function. It is a core driver of innovation, efficiency and customer experience.
Peter High is President of Metis Strategy, a business and IT advisory firm. He has written three bestselling books, including his latest Getting to Nimble. He also moderates the Technovation podcast series and speaks at conferences around the world. Follow him on Twitter @PeterAHigh.