From 35 years in the restaurant industry, Yum! Brands CEO David Gibbs has learned the difficulty of being beholden to third-party tech platforms. He’s seen “a lot of friction” in those partnerships.
That’s why Yum! spent almost 10 years—when Gibbs became CFO of Yum!—creating a state-of-the-art tech suite that would allow the company to control its own destiny when it came to tech innovation. It’s Gibbs’ belief that the largest restaurant company in the industry should have “the best technology in the world for our franchise partners at the lowest possible cost.”
Between multiple acquisitions and in-house development, the group arrived at Byte by Yum!, a comprehensive tech platform housing online and mobile app ordering, point of sale, kitchen and delivery optimization, menu management, inventory and labor management, and team member tools.
One of the most important points is that it’s a tech stack that works harmoniously, Gibbs said.
“There are a lot of people that operate restaurants where you might have dozens of different tech vendors that you’re trying to coordinate with to get to your restaurant to work every day,” the CEO said during Yum!’s Q4 earnings call. “Think about the complexities of that and trying to get those different disparate platforms to all work together. It’s very difficult. We’ve experienced that firsthand. By building our own tech stack and making that investment, we’re giving our franchisees a much more turnkey solution that gives us more capability in terms of how we can grow sales, make the experience easier for the employees in the restaurant.”
READ MORE: Yum! Introduces State-of-the-Art Tech Suite to Power its Restaurants Worldwide
Roughly 25,000 of Yum!’s restaurants use at least one of the products, and Gibbs said there’s plenty of funding and backing for the technology to reach all of its 60,000-plus stores worldwide. It’s one of the biggest reasons why the company earned more than $30 billion in digital sales in 2024.
With Byte by Yum!, the company is phasing out legacy names and branding—like Poseidon, Yum! Commerce Platform, Tracks, and SuperApp—and consolidating it all under Byte by Yum!
The Byte digital ordering platform, formerly the Yum! Commerce platform, is fully launched in the U.S. across Taco Bell, KFC, and Pizza Hut restaurants. Three Pizza Hut international markets, including the U.K., have the platform too. In the U.K. specifically, the digital ordering platform led to more than 50 percent digital transaction growth on the app and drove faster processing times than the previous system. This year, Yum! will expand the Byte digital ordering platform to five more markets while introducing AI-driven personalization and omnichannel loyalty software.
In addition to online ordering, last year Yum! doubled the number of stores using Byte’s restaurant coach mobile app, formerly SuperApp, to more than 20,000 KFC and Pizza Hut locations across 120 countries. The app simplifies routine audits and will be used to send AI-driven recommendations to employees. The Byte Kitchen and delivery system, formerly Dragontail, is live in more than 8,000 locations in multiple markets; it will be fully implemented in KFC and Pizza Hut U.S. in 2025 and expanded globally. Taco Bell U.S. launched the Byte back-of-house technology, formerly known as Tracks restaurant management system, in more than 1,500 restaurants in 2024. The chain will scale it across the entire footprint in 2025.
Byte by Yum! also accelerates the company’s efforts toward AI-driven marketing and hyper-personalized messaging. The restaurant group is already doubling consumer engagement in the U.S. compared to traditional approaches.
“With Byte’s rapidly expanding capabilities, we are building an intelligent, integrated digital platform that strengthens our brands, enhances consumer experiences, and empowers our franchisees,” said CFO Chris Turner. “As we scale these innovations, we are confident they will drive long-term growth, deeper consumer connections, and a more efficient operating model across our global system. The future is digital, and we are leading the way.”
Among all of Yum!’s properties, Taco Bell U.S. uses Byte by Yum! the most. Gibbs doesn’t believe it’s a coincidence that the Mexican giant is also one of the best performers in the quick-service segment. Domestic same-store sales lifted 5 percent in Q4, outpacing the industry by five percentage points. The chain gained dollar share of total industry spend and increased guest frequency across all income segments through its Decades platform—which brought back five nostalgic, in-demand menu items—and the price-pointed $7 Luxe Box. Taco Bell as a system also delivered more than $1 billion in core operating profit for the first time in company history.
“I think it’s undeniable that [Byte by Yum!] is adding to Taco Bell’s top-line success and the bottom-line success for our franchisees,” Turner said. “This includes expanding the adoption of loyalty technology across our portfolio, ensuring we continue to deepen consumer engagement and drive repeat visits through personalized, data-driven experiences.”
Taco Bell finished 2024 with 8,757 stores worldwide, comprising 7,604 in the U.S. and 1,153 internationally.
At KFC, excluding China, digital sales surged more than 20 percent in 2024 thanks to kiosk adoption. More than 50 percent of units outside of China had the in-store technology by the end of 2024. The goal is to reach 70 percent penetration by 2026. Additionally, KFC has scaled its global loyalty program to 14 markets, and Gibbs said “early data is promising.” Members show a 12 percent rise in frequency after joining.
The chicken chain’s U.S. same-store sales fell 5 percent in Q4. KFC ended 2024 with 31,981 stores worldwide, with 3,669 in the U.S. and 28,312 internationally.
Pizza Hut’s digital priority is improving the app to elevate engagement and bring value to the forefront for guests. U.S. comps, which fell 2 percent in the fourth quarter, were pressured by increased value competition in the QSR and pizza categories. Pizza Hut has seen impact from everyday value offerings, like its $7 Deal Lover’s Menu, which drives repeat visits from core guests. To attract lighter or lapsed users, the brand will “lean further into disruptive and distinctive value promotions,” according to Gibbs.
“With the right mix of innovation, value, and digital improvements, we are confident in our ability to strengthen Pizza Hut’s relative brand positioning and reinvigorate top-line momentum,” Gibbs said.
Pizza Hut has 20,225 locations worldwide, with 6,557 in the U.S. and 13,668 internationally.
The Habit Burger’s same-store sales were flat in Q4. Restaurant-level margins reached 10 percent in 2024, 150 basis points higher year-over-year, thanks to ongoing labor productivity initiatives. The fast casual had 383 stores, 377 of which are in the U.S.
Yum! opened over 1,800 new units in Q4 and more than 4,500 in 2024.
