Yum Brands acquires Tictuk Technologies in all-cash transaction
Second technology acquisition in March to propel omnichannel ordering, engagement
Yum Brands has acquired Tictuk Technologies, an omnichannel ordering and marketing platform company in Israel, in an all-cash deal. The parent of KFC, Pizza Hut, Taco Bell, and The Habit Burger Grill will provide expanded ordering capabilities to global customers on social media and conversational platforms through Tictuk.
Based in Tel Aviv, Tictuk was founded in 2016. The privately-held technology company provides a solution for conversational commerce that acts as a mechanism for customers to order and engage more broadly with brands. The technology works via WhatsApp, Facebook Messenger, Telegram, SMS, QR codes, and email, as examples.
The platform’s use of a hybrid tool based on chat, web, advertisements, and intelligent marketing technology is ideal for customer engagement globally. This tool integrates with the POS and existing payment systems, well-suited for delivery, curbside pickup and in-store dining
The acquisition of Tictuk follows the purchase of the artificial intelligence (AI) business of Kvantum, Inc. earlier this month. As an AI-based consumer insights and marketing performance measurement business, Kvantum’s AI will help Yum Brands better deploy powerful consumer insights and data analytics to optimize calendar and marketing spend globally.
Interestingly, the acquisition of both technology business units will have an immaterial impact on 2021 financial results, said Yum, but will play into the growth of its future commerce initiatives.
In 35 countries outside the United States, Yum successfully deployed Tictuk’s platform in approximately 900 KFC, Pizza Hut and Taco Bell restaurants. With Yum’s acquisition of Tictuk, and its omnichannel ordering and marketing capabilities, the company can scale additional deployment to more markets and franchisees globally to deliver more ways for consumers to access its brands.
“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,” said Clay Johnson, chief digital and technology officer at Yum Brands.
Yum Brands executives are cementing a digital strategy focused on delivering a best-in-class digital journey across mobile, online, delivery, and restaurant operations. The restaurant company recorded $17B in digital sales in 2020, representing an approximate 45% increase compared to last year.
Moreover, the company’s brands—KFC, Pizza Hut, Taco Bell, and The Habit Burger Grill—are looking for an edge in an increasingly off-premises world.
Chris Turner, Chief Financial Officer, Yum, commented, “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.”
Yum finalized its purchase of Tictuk, which will still serve external clients, today, effectively. However, the Kvantum all-cash acquisition will close by the end of Q1 2021. No other financial terms of the transactions were disclosed.
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