Yum Brands Inc., owner of KFC, is buying an Israeli-based startup that helps customers order food via message, a strategy that executives hope will boost sales as people stop eating fast food and return to full service restaurants.
Yum is prepared to use software made by Tictuk Technologies Ltd., a private technology company founded in 2016, for text fast-food orders, as well as social media applications such as Facebook Messenger and WhatsApp, the companies said. The technology processes a customer’s order in 60 seconds, said Clay Johnson, Yum’s digital and technology director.
Sales at Yum, based in Louisville, Ky., Have increased since testing Tictuk’s technology at about 900 KFC, Pizza Hut and Taco Bell restaurants in 35 countries, the company said. The financial terms of the agreement were not disclosed.
As America’s restaurant industry begins to reopen, fast-food companies are looking for ways to keep customers who have won while seated restaurants closed. Many chains are investing in online order collection systems to try to make them an attractive option, as consumers eat more out.
Online sales skyrocketed to companies ranging from retailers to car dealers during the pandemic. Restaurants started to create digital ordering mechanisms before the crisis and have quickly sought to do more since then.