Yum China illustrates a robot future

The company responsible for running KFC and Pizza Hut restaurants is using robots to expand without increasing staffing costs, boosting profits.

Why it matters

Ensuring a consistent experience is one of the key challenges for franchise brands. Yum China’s example is a high-tech, if slightly dystopian, example of ultra-modern technology in action.

Robot-driven profit growth

CEO Joey Wat told investors that the company “increased our stores, but without increasing the total number of staff”.

It follows an extended period of investment in technologies specifically around operations and training.

• Some of these are common around the world, such as digital screens to place orders. These hew toward convenience, with other ideas like digital lockers for contact-free pickup.
• Others are slightly gimmicky: in some stores a robot arm will serve you your ice-cream.

It is deeply impressive. The company has added 1,282 new outlets – a 56% increase – while keeping staffing levels flat. The result is a close to doubling of profits.

Sourced from Nikkei Asia/FT