Technology

Taco Bell, KFC, Pizza Hut parent buys conversational commerce company

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March 24, 2021

Yum Brands has acquired the Israeli ordering and marketing platform company Tictuk Technologies. The company said the move gives customers of its brands — KFC, Pizza Hut, Taco Bell and The Habit Burger Grill — access to leading social media and conversational platforms, according to a press release.

Founded in 2016, Tictuk is a privately-held company based in Tel Aviv, Israel, that specializes in so-called conversational commerce which allows customers to order from and interact with brands through a variety of social media and chat channels, like WhatsApp, Facebook Messenger, Telegram, SMS, QR codes and email. Tictuk's online ordering and marketing platform also uses a combination of chat, web, advertisements and intelligent marketing technology to engage with consumers.

The technology integrates with a QSR's POS and existing payment systems and works for all types of customer engagement including delivery, curbside pick-up and in-restaurant dining.

"As we navigate a consumer landscape reshaped by the events of 2020, we continue to intensify our focus on leveraging our scale and reinforcing our growth model with investments in digital and technologies to enhance the customer and employee experience, strengthen restaurant unit economics and enable our brands and franchisees to compete and win in a rapidly changing world," Yum Brands CEO David Gibbs said in the release.

In 2020, Yum! Brands' digital sales grew 45% year-over-year, to a record setting $17 billion, according to the release. As a result of that success and other market factors, the Louisville, Kentucky-based company said it's continuing s to accelerate its digital commerce strategy through data and advanced analytics, as well as emerging technologies that will help it grow worldwide.

"The right technologies will allow us to better serve customers with the best offer and delicious food in a way that's most convenient for them," Yum Brands CFO Chris Turner said in the release. "We're excited about the opportunity Tictuk presents, as their solution delivers high impact by enabling our brands to achieve a truly omnichannel presence and provide frictionless ordering for customers in just a few clicks."

The company has deployed Tictuk's platform in approximately 900 KFC, Pizza Hut and Taco Bell restaurants in 35 countries outside of the U.S., with plans to scale and offer Tictuk's omnichannel ordering and marketing capabilities to more markets and franchisees globally.

"Tictuk has a proven track record of driving increased conversion, loyalty and sales by making it even easier for customers to order our brands through their preferred social media or conversational channel," Yum Brands Chief Digital and Technology Officer Clay Johnson said in the release. "With Tictuk, we're able to offer our franchisees around the world an incredibly effective omnichannel ordering system that can be customized to every market's needs and implemented within just a few days. We're thrilled to have Tictuk join the growing Yum! technology portfolio, allowing us to offer more frictionless ordering experiences for our customers."

Tictuk Founder and CEO Tom Ben-Ezra said in the release that such omnichannel ordering capabilities not only enhance the quality of engagement with customers, but also allows brands to reach a wider audience.

The Tictuk business unit, as part of Yum! Brands, will continue to offer its platform to existing clients. With today's announcement, Yum! Brands' acquisition of Tictuk is complete.

Earlier this month, Yum! Brands entered into a definitive agreement to acquire AI consumer insights and marketing analytics company Kvantum, which uses machine learning and econometric modeling in its platform to measure marketing efficacy in specific regions across owned, paid and earned channels. Yum! Brands plans to use Kvantum globally to develop its ability to use consumer insights and data analytics in marketing decisions. That acquisition is expected to close by the end of the current quarter.

Neither of the two all-cash acquisitions is expected to impact this year's financial results, the company said. Between its four limited-service brands, Yum Brands has more than 50,000 restaurants worldwide.