Yum Brands Inc. has agreed to acquire technology company Dragontail Systems Limited for 93.5 million Australian dollars (around $72.6 million), with plans to scale Dragontail’s artificial intelligence kitchen order management and delivery technology globally, the two companies said Wednesday.
Dragontail, based in Perth, Australia, said its technology integrates the process of getting food to customers from the time orders arrive in the kitchen to when drivers are dispatched, with the added abilities of integrating with third-party delivery companies and allowing customers to track their orders.
“With Dragontail, we expect to tap into the power of [artificial intelligence] to accelerate and further enhance our delivery technology capabilities, especially at Pizza Hut, and optimize the end-to-end food preparation process,” Yum Brands chief financial officer Chris Turner said in a press release announcing the proposed acquisition.
Dragontail is already in use in nearly 1,500 Pizza Hut locations in 10 countries, Yum said.
Yum Brands, based in Louisville, Ky., is the parent company of KFC, Taco Bell and The Habit Burger Grill as well as Pizza Hut.
Dragontail managing director Ido Levanon said the technology company had been working with Yum Brands for years and that their activities are complementary.
“The synergy is natural and we bless the completion of the acquisition,” he said.
The proposed acquisition comes on the heels of Yum acquiring Tictuk Technologies, allowing customers to order directly via text and social media, and Kvantum Inc., to aid in customer data analysis.
Digital ordering, including delivery, have become increasingly important to many restaurants during the pandemic, including Yum Brands’ restaurants. The company attributed its strong performance in the first quarter, to boosts from digital sales.
The acquisition is subject to approval by Dragontail shareholders and the Australian Federal Court and is expected to be completed by the end of Yum Brands’ third quarter of 2021.
Contact Bret Thorn at [email protected]
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