Global fast-food chain KFC is adding more electric vehicle (EV) charging stations and McDonald’s is upgrading digital services, as the fast-food sector turns to digital convenience to draw more customers to drive-through stores amid fierce competition, according to analysts.
KFC now operates over 7,000 drive-through restaurants nationwide, including kerbside pickups, according to the first-quarter earnings report of Yum China, operator of KFC and Pizza Hut in mainland China and Hong Kong.
The chain said it would further utilise tech innovation to boost efficiency for orders and pickups at drive-through outlets in China.
“Drive-through is being folded into a broader convenience strategy, as consumers increasingly expect speed and instant fulfilment,” said Chloe He, director of Asia-Pacific corporate ratings at Fitch Ratings. “That is visible in the strong growth of delivery, which has become a much larger share of sales for major chains in China.”
He believes smart ordering was the clearer priority because it directly improved speed, accuracy and labour efficiency, while EV charging services were more of a selective add-on at certain stores.
In China, where EV adoption is high, EV charging “could help generate incremental traffic by giving drivers another reason to stop,” He said.