Technology

Yum China opens digital R&D center

Provided

October 21, 2021

Yum China Holdings, Inc. has launched a digital R&D center with three sites in Shanghai, Nanjing, and Xi'an.

The inauguration of the digital R&D center represents an important milestone for the company's strategy to build a dynamic digital ecosystem comprised of: the digital R&D center; joint venturing and third-party collaboration, to provide a solid foundation for Yum China to further develop its brands and businesses, accelerate expansion and capture market opportunities, according to a press release.

The center will consolidate and expand dedicated resources to develop solutions and services using technologies in big data, artificial intelligence, middle office and digital SaaS to drive end-to-end digitalization. The center will bolster Yum China's in-house digital capabilities across various functions, such as:

• Consumer-facing: to improve super apps, mini programs and membership programs to provide higher quality service and customer experience.
• Store operations: to upgrade systems and tools for more efficient operations and decision making, such as our digital tools for restaurant general managers, "Pocket Manager" and "Super Brain."
• Smart delivery: to further optimize delivery order queuing, trade zones, and rider routing.
• Supply chain management: to enhance food safety and streamline operations from farm to fork.

"Evolving consumer behavior, such as increased off-premise dining, and the company's accelerated development, place more demand on our R&D capabilities," Leila Zhang, chief technology officer of Yum China, said in the release. "We believe the establishment of the Digital R&D Center will significantly strengthen Yum China's internal digital capabilities and support sustainable business growth by using advanced technology for real life applications."

Yum China has earmarked $1 to $1.5 billion over the next five years in digital and technology. As an integral part of this initiative, the company plans to invest approximately $100 to $200 million and to employ up to 500 staff in the Digital R&D Center to support the company's growth over the next five years.