Yum China, the operator of KFC and Pizza Hut in China, launched an "AI plus robotics operating system" at the 2026 China International Supply Chain Expo (CISCE) in Beijing this week.

Zhang Lekai, vice president of supply chain strategy at Yum China, speaks at a launch event during the 2026 China International Supply Chain Expo, Beijing, June 22, 2026. [Photo/China.org.cn]

The system is designed to address persistent industry pain points, including labor shortages in cold storage, complex order sorting and high last-mile delivery costs. The launch reflects the ongoing shift in China's food service supply chain toward more intelligent operations powered by AI and robotics.

Zhang Lekai, vice president of supply chain strategy at Yum China, said the system is not a lab-bound concept but the product of integrating automation technologies and underlying algorithms with real-world operations across its stores.

“In the future, Yum China will further leverage AI to empower upstream growers, traders and producers across the supply chain — streamlining connections, reducing intermediate links and enabling efficient collaboration, so that Yum China and its supplier partners can advance together, build together and win together,” he said.

With more than 18,000 stores across more than 2,600 cities and towns nationwide, Yum China's newly launched system reflects China's broader push to develop new quality productive forces by upgrading traditional industries through technological innovation.

The Yum China booth at the 2026 China International Supply Chain Expo, Beijing, June 23, 2026. [Photo/China.org.cn]

For years, the food service cold chain logistics industry has been plagued by persistent challenges: the physical demands of working in sub-zero storage facilities, high labor costs and unreliable efficiency.

Yum China's system addresses those pain points. Inside minus 18 C freezers, robots handle "goods-to-person" picking, reducing the physical strain and safety risks that workers face in freezer environments and improving warehouse utilization. A separate algorithm system manages order splitting and consolidation across thousands of stock-keeping units to help speed up delivery to stores.

To address driver shortages and fluctuating fuel costs, Yum China showcased heavy-duty autonomous delivery vehicles at the expo capable of operating around the clock. With an "electric and unmanned" approach, the system reduces reliance on traditional delivery, ensuring ingredients reach restaurants on time regardless of weather conditions.

At the same booth, KFC China also unveiled its supply chain coordination strategy, focusing on improving quality, standards, accountability and sustainability in China's food service industry.