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South China Morning Post
06-07-2025
- Business
- South China Morning Post
KFC, Pizza Hut operator Yum China embraces AI to boost efficiency, profitability
Yum China Holdings , the operator of KFC and Pizza Hut restaurants in mainland China, will further embrace artificial intelligence (AI) to improve operating efficiency and profitability and allow its store managers to focus on customer service. 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.
Yahoo
23-06-2025
- Business
- Yahoo
Yum China pilots AI-enabled restaurant management tool
Yum China has launched a pilot of Q-Smart, an AI-enabled assistant for restaurant management. The tool assists with inventory, labour scheduling and food safety, offering intelligent support for decision-making in various operational aspects. It enables hands-free interaction through wearable devices, allowing managers to perform tasks without the need to engage with touch screens or PCs physically. Q-Smart leverages natural language processing to facilitate direct communication with restaurant managers, aiding in the management of daily operational tasks. It monitors inventory levels, aligns them with sales forecasts and prompt managers to make timely decisions on ordering and replenishment. The assistant can also respond to voice commands, enabling managers to conduct equipment inspections and inventory counts while drawing from the chain's knowledge base for real-time support and solutions for urgent issues. Q-Smart is currently undergoing trials at selected KFC outlets. The pilot phase will gather feedback from the users for future enhancements. Yum China chief technology officer Leila Zhang: 'We believe that Q-Smart will not only help Yum China improve its operational efficiency, but can also serve as an example for the digital transformation and smart development of the catering industry." Yum China noted that it has been integrating AI tools into its operations since 2019, including the AI-powered "Super Brain" and handheld Pocket Managers for real-time operational tracking. In 2023, the brand began exploring generative AI applications, and by 2024 was integrating these into customer service, logistics and back-office functions. At its AI Day opening ceremony, CEO Joey Wat announced the formation of a $13.9m Frontline Innovation Fund to support restaurant employees and fuel technological innovation. This initiative includes making the All-Staff Hackathon a routine annual event. In 2024, Yum China, Italian coffee manufacturer Lavazza, and super-sports car producer Automobili Lamborghini partnered to launch a co-branded drink in China. "Yum China pilots AI-enabled restaurant management tool" was originally created and published by Verdict Food Service, a GlobalData owned brand. The information on this site has been included in good faith for general informational purposes only. It is not intended to amount to advice on which you should rely, and we give no representation, warranty or guarantee, whether express or implied as to its accuracy or completeness. You must obtain professional or specialist advice before taking, or refraining from, any action on the basis of the content on our site. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
South China Morning Post
22-06-2025
- Business
- South China Morning Post
Yum China rolls out AI agent, to help, not replace store managers
Advertisement The assistant, named Q-Smart, was an AI-powered management system that enabled natural language interactions with store managers through wireless earphones and smartwatches, the nation's largest restaurant operator announced at an inaugural AI Day event at its Restaurant Support Center in Shanghai. Q-Smart was designed to assist frontline managers with daily operations, including labour scheduling, inventory management, and quality and safety inspections, it said. An introductory video showed Q-Smart's abilities, including monitoring product sales data, adjusting preparation plans, notifying managers and reminding staff to confirm orders. Having completed its initial development and testing phases, Q-Smart was now undergoing pilot testing in select KFC locations with continuous iterative upgrades, Yum China's chief technology officer Leila Zhang said at the event. Zhang emphasised the company's well-established digital infrastructure in restaurants, noting future plans to integrate more wearable devices and deploy Q-Smart in more stores. 'We believe that Q-Smart will not only help Yum China improve its operational efficiency, but can also serve as an example for the digital transformation and smart development of the catering industry,' Zhang said. Advertisement 'Regardless of how AI technology evolves, it remains an assistant to humans,' CEO Joey Wat said. 'From the beginning, we've positioned it to empower, not replace, our employees.'
