Yum China Leverages AI to Enhance Efficiency and Profitability
Yum China Holdings, the operator behind KFC and Pizza Hut in mainland China, is deepening its use of artificial intelligence (AI) to streamline operations and boost profitability. The company’s Q-Smart AI assistant, introduced in June, supports store managers by reducing waste, improving food quality, and cutting labor costs.
Leila Zhang, Yum China’s chief technology officer, explained that the AI system assists with staff scheduling, inventory management, and meal preparation. This approach allows managers to focus more on customer service rather than administrative tasks.
Empowering Store Managers with AI
"Our goal with AI and robotics is to empower restaurant managers," Zhang said. The company develops AI-powered tools that help managers work more efficiently, freeing their time to deliver better customer experiences.
The Q-Smart system monitors sales data, adjusts preparation plans dynamically, and prompts staff to confirm orders, ensuring smoother operations. This builds on Yum China’s history of innovation — it was the first fast-food chain in mainland China to adopt digital payment systems back in 2015.
Strong Digital Ordering and Membership Base
Digital orders made up about 90% of Yum China’s sales in 2024. This growth is supported by a loyalty program boasting 540 million members across mainland China as of March 31. The company continues to expand, opening 247 net new stores in the first quarter alone, reaching a total of 16,642 nationwide.
Financially, Yum China reported a 1% sales increase to US$2.98 billion for the first quarter compared to the previous year. Adjusted net income also rose by 1.7% to US$292 million. Annual sales are projected at US$11.3 billion for 2024, the highest since at least 2016.
What This Means for Management
- Integrating AI tools like Q-Smart can streamline operational tasks and reduce overhead.
- Empowering managers with technology frees them to focus on customer engagement and service quality.
- Digital ordering and loyalty programs remain key drivers of growth and profitability.
- Continuous innovation and adaptation in technology help fast-food chains maintain competitive advantage.
For managers looking to build AI capabilities within their teams, exploring practical AI training courses can provide valuable skills. Resources such as Complete AI Training’s latest courses offer hands-on learning tailored to operational roles.
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