The last few years has seen quick service restaurants invest heavily in technology to boost traffic and increase sales. Two of the biggest names in the industry—McDonald’s and Yum! Brands, were in the news this week for dealmaking in the technology space.
This article was originally published by Market Crumbs.com.
Yum! Brands, the parent of chains KFC, Pizza Hut and Taco Bell, announced earlier this week that it has agreed to acquire the artificial intelligence-based consumer insights and marketing performance analytics business of Kvantum. The acquisition will enable Yum! Brands to make data-driven marketing decisions and acquire new technology talent.
Yum! Brands plans to combine Kvantum with Collider Lab, which is a culture-based consumer insights and marketing strategy consultancy the company acquired in 2015. The move enables Yum! Brands to work towards its global technology strategy of providing a best-in-class digital journey across mobile, online, delivery and restaurant operations.
“Technology strategies that elevate the customer and employee experience and lead to smart, data-driven marketing decisions are critical to keeping our brands R.E.D. (relevant, easy to access and distinctive) and delivering growth for our franchisees and shareholders,” Yum! Brands CEO David Gibbs said. “We’re excited about the opportunity this acquisition presents, and the potential to scale Kvantum’s proven technologies across our system to strengthen our data and advanced analytics capabilities and elevate our world-class marketing competencies globally.”
Earlier this week McDonald’s said that it is considering selling part of Dynamic Yield, the artificial intelligence startup the company acquired in 2019 for $300 million. Dynamic Yield’s technology powers menus at McDonald’s drive-thrus and can recommend items to customers depending on various factors such as weather or current traffic.
The decision by McDonald’s to sell a stake in Dynamic Yield, which was its largest acquisition in two decades, comes as franchisees complain the technology hasn’t increased sales as was promised. McDonald’s reviewed transactions and found that Dynamic Yield’s technology contributed to sales less than previously reported.
Despite the complaints and the technology not living up to expectations, McDonald’s is standing by it. The potential sale would only be for the portion of Dyanmic Yield that works with outside retailers, which is becoming a larger part of its business.
“The potential sale of the non-McDonald’s part of our business has been discussed from the outset and now feels like the right time to explore that possibility,” Dynamic Yield founder and CEO Liad Agmon said. “We look forward to our continued relationship while continuing to expand the use of Dynamic Yield’s technology at McDonald’s restaurants around the world.”
The news from Yum! Brands and McDonald’s this week are just the latest examples of how quick service restaurants are embracing technology to remain competitive