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Yum Brands is buying the artificial intelligence company Dragontail

The Australian company will give the owner of KFC, Pizza Hut, Taco Bell and Habit technology designed to automate kitchen flow and dispatch delivery drivers.
Yum Brands buys Dragontail Systems
Images courtesy of Yum Brands

Yum Brands is buying another technology company. This time it’s in the kitchen.

The owner of KFC, Pizza Hut, Taco Bell and Habit Burger said on Wednesday that has agreed to buy Dragontail Systems Limited, based in Perth, Australia, for Aus$93.5 million ($72.5 million U.S.). The company operates a platform, currently in use in 1,500 Pizza Hut locations, that manages the food preparation process from order through delivery.

Yum said the company uses artificial intelligence to automate the kitchen flow process, combined with a process for dispatching drivers. The technology can be used with outside food delivery companies—important given that Yum works a lot with third-party delivery providers.

The deal is pending approval from Dragontail shareholders as well as Australian regulators. It is expected to be complete in the third quarter. Yum and Dragontail have worked together for years.

Once done, the acquisition will be Yum’s third of a technology company just this year. In March the Louisville, Ky.-based quick-service operator bought Tictuk Technologies, which enables ordering through social media and chat channels. Earlier it acquired Kvantum, a company that uses artificial intelligence for marketing purposes.

“With Dragontail, we expect to tap into the power of A.I. to accelerate and further enhance our delivery technology capabilities, especially at Pizza Hut, and optimize the end-to-end food preparation process,” Yum CFO Chris Turner said in a statement.

Once the deal is complete, Yum will bring Dragontail’s technologies in-house and offer them to its brands around the world over time.

“The activities of Dragontail and Yum Brands are complementary, the synergy is natural and we bless the completion of the acquisition,” Ido Levanon, Dragontail’s managing director, said in a statement.

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