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Two chipmaking giants are joining forces.
Yum! Brands (YUM+0.43%) has tapped Nvidia (NVDA+2.83%) to accelerate the use of AI across its global restaurant network.
Joe Park, Yum chief digital and technology officer, said the goal of the partnership is to create easier experiences for customers and employees, and provide franchises with “better, faster, cheaper, and safer technology,” while maximizing shareholder returns.
The collaboration will focus on three key areas for Yum: voice AI ordering for drive-thrus and call centers, computer vision to optimize operational efficiency, and restaurant intelligence, using AI-generated analytics to boost performance.
Pilot programs for these technologies are already underway in select Taco Bell and Pizza Hut locations across the U.S., with plans for a broader rollout targeting 500 restaurants across all Yum brands in the second quarter. Yum also owns KFC and Habit Burger & Grill.
Taco Bell has been exploring AI for several years. In July 2024, chief innovation officer Lawrence Kim said Yum had been testing AI voice technology for two years. By then, over 100 Taco Bell drive-thrus in 13 states had already implemented the technology.
As the AI race intensifies among tech giants, restaurants are increasingly adopting the technology to stay competitive. AI has already become a mainstay in Big Food, with chains like McDonalds (MCD+1.25%), Chick-fil-A, and Wendy’s (WEN-0.87%) using it to streamline operations, reduce labor costs, and boost efficiency.
Chick-fil-A is using robots to cut and squeeze lemons, while Wendy’s is using AI to help it manage Frosty demand.
This partnership marks Nvidia’s first venture into the restaurant sector. It also signals a strategic shift for Yum, which has historically built its tech operations through acquisitions. By partnering with Nvidia, Yum will own the AI intelligence created, allowing it to customize the technology to its needs.
Although the financial terms of the deal haven’t been disclosed, both Yum and Nvidia have seen stock growth, with Yum up 14% over the past year and Nvidia’s stock rising 35%.