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Customers will be able to use a "Smile to Pay" facial
recognition system at the tech-heavy, health-focused concept
store, part of a drive by Yum China Holdings Inc to lure a
younger generation of consumers.
Yum China, which spun off from its U.S. parent Yum Brands Inc
last year, is trying to rev up growth in the world's second
largest economy, where food safety scares and changing consumer
tastes have dented sales since 2012.
Yum is still the largest fast food chain in the market, where it
has over 7,685 outlets. Its China same-store sales have also
been slowly improving, rising in the second quarter of the year
on a strong showing by its KFC brand.
The new outlet in Hangzhou, called KPRO, is targeting a younger
generation of Chinese who are expected to drive the lion's share
of China's consumption growth over the next decade.
Joey Wat, Yum China's president, said the store was aimed at
"young, tech savvy consumers who are keen to embrace new tastes
and innovations".
The Hangzhou store involves a tie-up with Ant Financial, which
is behind the facial recognition software. Alibaba Group Holding
Ltd affiliate Ant said this is the first commercial application
of the technology worldwide.
Diners can pay by scanning their faces at an ordering kiosk and
entering a phone number - which is meant to guard against people
cheating the system.
"Combined with a 3D camera and liveness detection algorithm,
Smile to Pay can effectively block spoofing attempts using other
people's photos or video recordings and ensure account safety,"
Jidong Chen, Ant's director of biometric identification
technology, said in a statement.
The store's menu offers seasonal produce, made-to-order salads
and paninis. The chicken on the menu is "roasted", while drinks
include freshly squeezed juices, gourmet coffees and craft beer.
The concept store is not the first time Yum, or its major rival
McDonald's Corp, have tested new ideas in the market. Yum
launched a swanky Italian diner as a test "lab" on Shanghai's
iconic riverside Bund in 2015.
(Reporting by Adam Jourdan; Editing by Darren Schuettler)
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