By Orit Naomi, RTN staff writer - 8.22.2024
Orlando has become a unique testing ground for KFC as the company experiments with new store designs, menu variations, and, most notably, cutting-edge restaurant technology. The city’s diverse customer base and the concentration of corporate-owned stores make it an ideal location for KFC to pilot new initiatives before rolling them out nationwide.
“It’s because Orlando has every type of customer we reach,” explains Lori Eberenz, director of public relations and partnerships for KFC. This diverse demographic allows the company to gather valuable feedback on new concepts and ensure they resonate with a wide range of consumers.
Additionally, the 16 Orlando KFC locations chosen for these tests are all corporate-owned, providing the company with greater control and flexibility in implementing changes. This contrasts with the vast majority of KFC restaurants, which are franchise-owned.
KFC’s “Original” prototype, currently being tested in Orlando, showcases a range of technological advancements aimed at streamlining operations and enhancing the guest experience. These include:
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Digital Menu Boards: These interactive displays make it easier for customers to navigate the menu and explore KFC’s offerings.
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Digital Ordering Kiosks: These self-service kiosks provide a convenient and efficient ordering option for customers, reducing wait times and improving order accuracy.
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Upgraded Kitchen Technology: KFC has implemented a kitchen display system (KDS) to improve order accuracy and streamline communication between the front-of-house and back-of-house staff.
According to the company, these technological enhancements have already yielded impressive results, with KFC reporting a 30% increase in speed of service, a 60% improvement in order accuracy, and a 41% improvement in guest satisfaction scores at the Orlando test locations.
KFC’s parent company, Yum Brands, is also heavily investing in artificial intelligence (AI) to further its digital transformation efforts. The company is working with AI startups to leverage its vast data assets and develop innovative solutions for its brands, including KFC, Taco Bell, and Pizza Hut.
Yum Brands is particularly focused on reinforcement learning, a type of machine learning that trains models to make optimal decisions based on real-time data. This technology is being applied to various aspects of the business, from marketing and operations to customer insights and back-office functions.
“As we mature, we find ways to operate more effectively internally, organize better, and that allows us to get more done at lower costs,” said Chris Turner, CFO of Yum Brands, during a recent earnings call. “And we’ve got strong governance of our tech spend in place.”
Taco Bell, another Yum Brands subsidiary, is at the forefront of AI implementation, rolling out AI-powered drive-thrus to hundreds of its US locations. This technology, which has already been piloted in 100 stores, aims to enhance order accuracy, reduce wait times, and improve the overall customer experience.
Taco Bell’s AI drive-thru system leverages voice recognition technology to take orders, freeing up employees to focus on other tasks and ensuring a consistent and efficient ordering process. The company plans to eventually implement this technology in all its restaurants, demonstrating its strong belief in the transformative potential of AI.
KFC’s focus on technology innovation in Orlando provides a glimpse into the future of the fast-food industry. As restaurants face increasing pressure to improve efficiency, enhance the customer experience, and address labor challenges, technology is playing an increasingly vital role. KFC’s Orlando experiment demonstrates the company’s commitment to embracing these advancements and leveraging technology to stay ahead of the curve.
The success of these initiatives in Orlando could pave the way for wider adoption across KFC’s global network of over 30,000 restaurants. As customers embrace the convenience and efficiency of digital ordering, AI-powered service, and other technological advancements, the fast-food experience is poised for a significant transformation, with KFC leading the charge.
