http://baltijapublishing.lv/index.php/issue/article/view/1199/1238

Baltic Journal of Economic Studies
168
Vol. 7 No. 3, 2021
DOI: https://doi.org/10.30525/2256-0742/2021-7-3-168-176
MODERN MANAGEMENT TECHNOLOGIES
IN THE HOSPITALITY INDUSTRY
Olena Sukach
1
, Svitlana Kozlovska
2
, Natalia Sushko
3
Abstract.
The hospitality industry is currently one of the dynamic areas of the developing economy which
stimulates the development of various sectors of the modern economy. The current challenges posed by the next
economic crisis and the effects of pandemic constraints require the formation of new mechanisms for managing
the hospitality sector. The main
purpose
of the research is to create modern management tools for the development
of the investment potential of the hospitality industry.
The subject of the research
includes Ukrainian hospitality
enterprises, their financial condition and management in a pandemic. The process of systematization of literary
sources has identified the main modern problems of the hospitality industry, which include hotels, restaurants,
entertainment, sporting events, and other services related to tourism. However, this specific area has a unique set
of problematic aspects that need to be solved immediately. Understanding the importance of the management
system in the hospitality industry and its adaptation to modern changes will help increase the competitiveness of
such enterprises in the market.
Research methodology:
the article uses the funds of empirical studies of the essence
of the hospitality industry, as well as statistical analysis of the modern market of hotel services. Also, the investment
market in the sector of tourism was studied with the help of mathematical tools. Modern management in the
hospitality industry is aimed at deviating from the typical and traditional tools to meet customer needs, which is
caused not only by social change but also by the development of various financial instruments. The study proves that
the successful development of the hospitality industry is impossible without the use of modern management tools
based on the principles of marketing. Analyzing the market of hospitality services, in the process of development
and implementation of innovative services, it is advisable to focus on the study of a competitive environment and
the needs of potential customers.
Conclusions.
The results of the study prove the importance of this area and the
feasibility of developing and implementing effective management tools. The research substantiates and offers
promising areas for attracting investment resources in the hospitality industry. Also, according to the results
of the study, the authors propose the stages of implementation of target marketing as an effective tool for the
development of hospitality in Ukraine. The concept of development of innovative services in the field of hospitality
on the basis of the formed strategy of target marketing is developed.
Key words:
hospitality industry, hotel business, financial instruments, investments, hospitality enterprises, the
concept of development of innovative services.
JEL Classification:
E22, M11, M31, L26, L53
Corresponding author:
1
Rauf Ablyazov University East European, Ukraine.
E-mail: sukach.o.m@gmail.com
ORCID: https://orcid.org/0000-0001-7150-0262
ResearcherID: E-7418-2019
2
Rauf Ablyazov University East European, Ukraine.
E-mail: ksv750704@gmail.com
ORCID: https://orcid.org/0000-0002-1754-1220
3
Rauf Ablyazov University East European, Ukraine.
E-mail: natalia_sushko@ukr.net
ORCID: https://orcid.org/0000-0003-2201-0755
1. Introduction
The hospitality industry is currently one of the
dynamic areas of the developing economy which
stimulates the development of various sectors of the
modern economy. The current challenges posed by
the next economic crisis and the effects of pandemic
constraints require the formation of new mechanisms
for managing the hospitality industry.
At the current stage of social transformation, the hotel
business is in a difficult situation, which is associated
with significant competition in the market and the
effects of the global financial crisis. In 2017 in Ukraine,
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Vol. 7 No. 3, 2021
the number of hotels and similar accommodations was
4432 units, in particular: 3392 units were represented
by private enterprises (Statistical collection, 2018).
In 2018, the number of accommodations raised to
4985 units (Statistics, 2020). This situation forces hotel
owners to develop and implement various measures
that will allow them not only to stay afloat but also to
take a leading position in this market. It is the uncertain
state of the hotel business market in our country that
requires hospitality entities to actively improve and
implement the provisions of management policy
aimed at ensuring the development and obtaining the
necessary income.
As the most important function of the hospitality
industry, management activity in the hotel business
should ensure constant, stable, competitive operation
and development of the management system in the
market of hotel services taking into account the internal
and external environment of the enterprise. The basis
of such activities is a marketing approach, which, in
turn, involves the implementation of comprehensive
marketing research, and the creation, based on them,
strategies and software measures to ensure the economic
efficiency of the hotel business and increase the level of
meeting needs of the end user.
Currently, there are a number of problems in the
hospitality industry in Ukraine that need careful research
and solution. In particular, it is necessary to: study the
development trends of the hotel business, modern
trends in the policy of promoting the hotel product
on the market; evaluate the effectiveness of financial
instruments for the promotion of hotel services; to
generalize the existing experience of marketing policy
implementation in the hotel business, as well as to form
the maximum set of tools for financing the development
of the hospitality industry.
2. Literature review
Despite the considerable interest in the stages of
development of the hospitality industry, the issues
of the ultimate satisfaction of the needs of citizens in
high-quality hotel services remain unresolved now. So,
the results of research on the development of the hotel
business are presented in the papers of a significant
number of authors. For example, V. Fedorchenko
believes that human resources (skilled workers) are
those important resources that underpin the hospitality
industry (Fedorchenko, 2003). The economic aspects
of the development of the hotel industry were
studied by H. Krul, T. Tleuberdinova, D. Ussenova,
O. Yurchenko, etc. Problems of marketing research are
presented in the works by foreign scientists, such as
T. Ambler, J. Evans, P. Kotler, J.-J. Lambin, etc. Many
foreign scientists agree that the hospitality industry is
a joint activity of the service sector to meet the needs
of vacationers.
In common sense, the term "hospitality" is defined
as respect for the guest, but the economic meaning
of this definition is more complex; in this regard,
experts have some differences in understanding the
content of the hospitality industry. According to
J. Walker, the hospitality industry combines tourism,
hotel and restaurant business, catering, recreation and
entertainment, conference and meeting organization
(Walker John, 2017). According to dictionary
Merriam-Webster, "the hospitality industry is a sphere
of entrepreneurship consisting of such services based
on the principles of hospitality, characterized by the
friendly or courteous treatment of guests" (Webster).
Many foreign researchers agree that the hospitality
industry is a joint activity of different fields operating
to achieve a purpose to meet the different needs of
tourists.
Consequently, the hospitality industry is an
organizationally significant, more complex area of
activity that focuses on meeting the demand of not only
tourists who actually travel but also of customers living
in local lodging enterprises (Malskay, Pandyak, 2012).
E. Zin noted that the "hospitality industry " is
a part of the social infrastructure of the region, which
creates favorable conditions for the movement and
development of the population (Zin, 2007). "Hotel
business" means the activity that offers its own services
and benefits that provide the necessary physical living
conditions for tourists. This is how Marcel Gauthier
explains the essence of the hotel industry. He also adds
that this applies to services that tourists need during
their business or family trips outside their permanent
residence (Zin, 2007).
Among Ukrainian researchers, Z. Tymoshenko,
H. Munin, L. Strashinska, Yu. Kariahin, T. Demura,
etc. have conducted research on the basic principles
of hospitality marketing. However, despite the
significant developments and results of the study, the
use of financial instruments for the implementation of
management and marketing policy in the hotel business
remains open.
4. Research results
The hotel business is an integral part of the tourism
industry. Acting as the foundation for the material and
technical base of tourism, it allows us to create a positive
tourist image and helps meet the needs of tourists.
The main factors in the formation and development of
the hospitality industry are (Malskaya, Pandyak, 2012):
- social development of public relations, which has led
to demographic and migration processes, the availability
of a network of hotels and other accommodation to
implement them;
- economic increase in the individuals' incomes, the
significant economic potential of some regions and
centers;
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Vol. 7 No. 3, 2021
- features of a mindset, culture and religion that
influence the formation of the hotel chain and determine
the types of hotels;
- scientific and technological progress;
- development of recreational and tourist natural
resources.
Nowadays, under the influence of globalization
processes, the global hotel business is represented by
four models of hospitality: American, European, Asian,
and Eastern European. Features of the American model
of international hotel business development are based
on the concept of the hotel chain using the benefits of
the brands' image as a marketing tool that promotes the
hotel product in domestic and foreign markets.
The European approach aims to maximize the coverage
of target segments. In addition, European companies
in their activities attach particular importance to the
national and cultural characteristics of the countries in
which they work. This allows those companies to achieve
significant success in the international hotel business.
The Asian model is the most agile in developing the
hotel business.
The Eastern European model of hospitality stands out
from the European one due to the large share of post-
Soviet enterprises in the hotel industry, as well as the
proximity of hotels typical of European countries and
the Asian model, according to the American model.
In total, today there are about 402,900 hotels of various
star ratings in the world. For example, approximately
204,100 "star" hotels have been opened in Europe;
consequently, the total number of all accommodation
establishments, including mini-hotels, hostels, and
apartments, reaches 660,000. Most of the hotels
with a star ratings are located in Italy (32,803 hotels),
followed by hotels in Croatia (29,282 hotels), France,
Germany, Great Britain, and Spain.
According to the estimations, in 2018, there
were more than 600,000 tourist accommodation
establishments in the EU-27, and together they
provided almost 28.3 million sleeping accommodations
(Table 1). More than a third (36.1%) of all sleeping
accommodations in the EU-27 were concentrated in
only two EU member states, namely Italy and France
(5.1 million sleeping accommodations each), followed
by Spain and Germany (3.6 and 3.5 million sleeping
accommodations respectively).
As a rule, in recent years, the number of visits to tourist
establishments in the EU tends to increase (Figure 1).
After the financial and economic crisis in 2008 and
2009, the number of nights began to recover in 2010 and
reached a maximum of 2.8 billion nights in 2018, which
was 2.7% more than in 2017 (Tourism statistics, 2018).
It is estimated that in 2019, residents spent 1.74 billion
nights in tourist facilities in the European Union.
That is, taking into account non-residents there were
1.68 billion people who stayed overnight in short-term
housing in the same year. That is, taking into account
non-residents there were 1.68 billion people who
stayed overnight in the short-term accommodations
in the same year. In total, overnight stays in all
types of accommodation in the EU in 2019 reached
approximately 3.42 billion nights.
When evaluating the distribution by type of
accommodation, hotels and similar lodgings were
clearly the most popular (64%), followed by rented
apartments (23%) and campsites, recreation parks and
trailers (13%). However, there were significant regional
differences, while in Denmark, Luxembourg, France,
and Sweden the share of the camping market was more
than twice the EU average (Tourism statistics, 2018).
All three types of tourist accommodation increased
in 2018. The number of nights spent in hotels increased
by 2.4%. Nights spent on holidays and other short-
term accommodation and nights spent on campsites
increased by 3.6% and 1.3%, respectively.
As of January 1, 2020 (operational data from
UKRSTAT), the number of dormitories and similar
temporary accommodations in Ukraine was 4989 units.
This number has increased significantly in recent years
(Figure 2), which, accordingly, boosts the level of
competition between them.
The main reason for this situation is the increase
in tourist flow within Ukraine. Thus, according to
the statistics department, the number of official
tour operators in Ukraine in 2018 amounted to
1,833 units (+ 90 units compared to 2017). They
Table 1
Number of tourist accommodation facilities in the EU, 2018
Number of establishments (units)
Number of sleeping accommodations
(thousands)
Nights spent (millions)
EU-27
600,157
28,294
2,791.2
Germany
50,020
3,474
419.6
Spain
51,418
3,600
466.9
France
29,652
5,112
442.8
Italy
216,141
5,113
428.8
United Kingdom
84,580
3,944
354.4
Other countries
168,346
7,052
679
Source: Formed by the authors according to: https://ec.europa.eu/eurostat/statistics-explained/index.php?title=Tourism_statistics#Bed_places_in_
the_EU-27:_Italy_and_France_predominate
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Vol. 7 No. 3, 2021
served 4,481,502 domestic tourists (+ 62%) and
75,945 foreigners (+ 92%) in Ukraine.
There are also a number of "independent" tourists
who also use the services of hotels and similar
lodgings. Hotels and other places of temporary
accommodation for tourists in Ukraine are mainly
represented by small and medium businesses (Figure 3).
The vast majority of hotel business entities consist
of small entrepreneurs. Accordingly and ambiguously,
this is reflected in the results of their activity, namely
the profit, seasonality of services, and inconsistencies in
legislation.
In the EU, one in ten companies in the European non-
financial economy belonged to the hospitality industry.
These 2.4 million enterprises employed 13.6 million
people. Hospitality enterprises accounted for 9.5%
of those employed in the non-financial economy and
21.7% of those employed in services. The share of
Figure 1. Trends in nights spent at EU-27 tourist accommodation establishments, EU-27, 2010-2018, %
Source: Formed by the authors according to: https://ec.europa.eu/eurostat/statistics-explained/
114,6
119,3
124,6
133,8
106,9
154,2
149,9
140,7
128
,5
127,8
124,7
120,1
116,5
111,8
109,9
109,7
109,9
108,5
107,8
112,0
113,8
116,2
118,9
124,0
128,9
135,5
139,2
0,0
30,0
60,0
90,0
120,0
150,0
180,0
2010 2011 2012 2013 2014 2015 2016 2017 2018
0,0
30,0
60,0
90,0
120,0
150,0
Nights spent by non-residents
Nights spent by residents
Total nights spent
Figure 2. The number of accommodation facilities in Ukraine for 2010-2019, units
Source: Formed by the authors according to: http://www.ukrstat.gov.ua
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Vol. 7 No. 3, 2021
hotel enterprises in total turnover and value added at
actual value were relatively lower. Thus, the hospitality
industry accounted for 3.9% of turnover and 5.8% of
value added of the non-financial economy.
Hospitality has a double meaning: on the one hand,
it is a friendly attitude to the guest, and on the other
hand, it means a cooperative enterprise in various fields,
aimed at making a profit by meeting customer needs. As
we know now, only in 2017-2018 entrepreneurs of the
hospitality industry were able to make a profit (Table 2).
The reason for this is the rather low purchasing power
of citizens who choose more budget accommodation,
as well as the "dubious" quality of services provided.
Accordingly, increasing the number of "consumers"
of hotel services contributes not only to increase the
number of hotel enterprises but also to improve the
quality of services provided under these conditions,
the market policy of business participants becomes the
basis for competitiveness of the hospitality industry.
Management decisions and the use of marketing
technologies in the hospitality industry allow us to
determine the guests' needs, create attractive conditions
and offer the most comfortable services for basic market
research, product planning, advertising and promotion.
Modern marketing, which is often called integrated
marketing, affects all sectors of any hotel business, its
functional organizational structure.
Accordingly, the development of marketing strategies
today is the foundation for the successful development
of the hotel industry. As the main features that must be
considered in the formation of marketing strategy, we
can mention the following:
1. Demand for hotel services is extremely elastic in
terms of income and prices, but it also largely depends
on socio-economic conditions.
2. Due to seasonality in demand, there can be observed
the so-called saturation phenomenon.
3. The offer of hotel services differs in its inflexible
work practices. They can be consumed only in the places
of their production; they cannot fully adapt to changes
in consumers' demand over time and space.
4. Hotel product is developed by the efforts of many
companies; each of them has its own methods of work,
specific needs, and different business goals.
Figure 3. Distribution of hotels and similar placements by business entities, units
Source: Formed by the authors according to: http://www.ukrstat.gov.ua
Table 2
The financial results of the activities of hotels and means of temporary accommodation of citizens in 2014-2018
financial result
(balance) before
tax, thousand UAH
net profit (loss),
thousand UAH
profit-making businesses
enterprises that received the loss
% to the total
number
of enterprises
financial result,
thousand UAH
%to the total
number
of enterprises
financial result,
thousand UAH
2014
-5,118,590.2
-5,142,911.5
47.7
170,797.8
52.3
5,313,709.3
2015
-5,243,358.3
-4,959,158.6
56.7
317,428.5
43.3
5,276,587.1
2016
-2,124,046.6
-2,028,619.9
59.0
803,661.3
41.0
2,832,281.2
2017
1,463,132.0
1,470,289.3
59.0
2,963,395.4
41.0
1,493,106.1
2018
2,158,170.2
1,846,720.1
63.8
2,697,681.8
36.2
850,961.7
Source: Formed by the authors according to: http://www.ukrstat.gov.ua
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Vol. 7 No. 3, 2021
5. High-quality hotel services cannot be achieved if
there are even the slightest non-conformities because
guest service consists of these smallest details.
In this regard, many hotel chains prefer target
marketing to optimize market opportunities and develop
appropriate products for each segment of the target
market. Businesses can adapt their products, prices,
distribution channels and advertising to maximize their
outcome.
In general, target marketing in the hospitality industry
consists of three main stages (Figure 4).
Thus, at the first stage the market of hotel services is
segmented with the formation of groups of "consumers".
The purpose of segmentation is to create favorable
conditions for guests and reduce hotel costs.
Defining marketing opportunities creates a basis
for detailing the target group. This approach allows
businesses not to dissipate their efforts but to focus
them on the most promising sectors. This ensures the
concentration of financial, physical and labor resources
and increases the efficiency of the forms and methods
of marketing, advertising, sales promotion, etc. It is
impossible to achieve this goal without choosing and
implementing a well designed marketing strategy.
The choice of marketing strategy is based on
the formation of marketing goals, development of
alternative strategies, their justification and evaluation
in accordance with the criteria of compliance with the
goals, potential of the enterprise and the degree of risk
in the sector of marketing. The practical implementation
of marketing strategy is associated with the choice of the
Figure 4. The stages of target marketing
Source: author development
1
Market
segmentation
Definition of market segmentation criteria
Highl ight ing the spec ific chara cter istic s
of indivi dua l segmen
ts
2
Target Group
Selection
Determini
ng ways to appea l
to a par ticu lar market
segment
Target Segment Selection
3
Market positioning
Formation of a set of measures for each target
segment
Development of a marke ting strate gy
for a specif ic targ et seg ment
range of tools that ensure the materialization of goals
and objectives.
When creating and promoting a new product, the
analysis of the situation on the market of hotel services
can reduce the risks of its commercialization. Among
the important strategic objectives for the development
of the hospitality industry, it is advisable to consider
the diversification of offers, expansion of the range of
hotel services.
The development of hotel chains facilitates the
emergence of various forms of management, which, in
turn, increases the efficiency of hotel management, as
well as the inflow of investment in the hotel business
directed from other sectors of economic activity.
The hospitality industry is based not only on customer
satisfaction and employment in a particular market
segment but also on profit.
As noted earlier, the financial results of the hospitality
industry in 2017-2018 had positive results, and the
profitability of operating activities was 22.3% (2018)
(Statistical publication, 2018). The main reason for
stabilizing the situation was the improvement of the
quality of services, as well as significant investment in
this industry.
Thus, according to statistics, in 2019 the volume
of capital investments in the hospitality industry
amounted to 968,753 thousand UAH (+ 6%). In 2018,
this figure increased by 3.3% to 934.6 million UAH. That
is, annual investments in the hotel sector do not exceed
1 billion UAH. There are no exact statistics on the sources
of financing of the hotel segment, but within the whole
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economy only 7.7% of capital investments were made
through bank lending, and more than 70% belonged
to companies and organizations (Capital investment,
2019). General investment activity in this area covers
both tangible and intangible segments (Table 3).
The investments made it possible to solve a significant
part of the problematic aspects of this business in
2013-2016 and raise the level of overall profitability
in 2018 by 14.6%. To one degree or another,
the implementation of investment projects was
accompanied by the introduction of certain innovative
technologies for creating new services and methods of
providing them. Therefore, along with advertising and
brand promotion, the marketing strategic component
in the hotel business is the implementation of certain
innovative projects in the hospitality industry.
The hotel product is an important factor influencing
the hospitality industry. In this regard, much attention
is paid to the quality and further upgrading of the
hotel product. Innovation in the hospitality industry
is an important financial tool for competing in the
hotel services market (Malskaya, Pandyak, 2012).
The development of innovative services is carried out
on the basis of monitoring innovative trends in the
market, as well as analyzing the needs of potential
consumers and the use of non-standard methods of
solving strategic problems.
However, when deciding to diversify the range of
hotel services, it is necessary to take into account
possible threats, namely significant material costs at all
stages: from the generation of the idea of creating a new
hotel product to its final implementation.
We believe that the successful development of
the hotel business is impossible without the use of
integrated marketing. When analyzing the market of
hotel services in the process of generating and creating
innovative services, it is advisable to focus on studying
the competitive environment and the needs of potential
customers (Figure 5).
The concept of innovative services includes
assessment of the impact of external and internal
environment, definition of target segments, calculation
of the sales forecast for hotel services. The possible
sales forecast is the main result of the development of
the marketing complex, the basis for financial analysis
and determination of economic indicators of the
project of implementation of innovative hotel services.
At the same time, the innovative development of
the enterprise means not only the main innovation
process but also the development of a system of factors
and conditions necessary for its implementation, i.e.,
innovation potential.
One of the important points in the management
of innovation in hotels is to determine (evaluate) the
innovation performance. It is reasonable to group the
main criteria for evaluating the results of innovation in
the following areas:
- indicators that assess the production effect of the
introduction of innovative hotel services;
- indicators that characterize the commercial gains of
innovation;
- indicators that reflect the impact of investments made
by hotel service providers in the commercialization of
innovative hotel services.
Thus, in modern conditions, innovations and
innovative activities are becoming increasingly
important for economic development and successful
financial activity of the hospitality industry, at the
same time, being a foundation for the acquisition and
occupation of leading positions in the market.
Table 3
Hospitality Capital Investments
Capital
investment
total
Including
Capital
investment
intangible
assets
Out of them
Capital
investment
in intangible
assets
Out of them
In land
In existing
buildings and
structures
In construction
and reconstruction
of buildings
In
machinery
and
equipment
In
concessions,
patents,
licenses,
trademarks
and similar
rights
In the
purchase
of software
2010
1,256,770
1,250,502
10,771
33,457
883,990
276,709
6,268
384
3,800
2011
2,297,905
229,0949
17,093
18,087
1,758,462
381,058
6,956
667
5,887
2012
1,456,543
1,448,549
19,694
17,311
1,152,764
177,962
7,994
3,159
2,988
2013
783,491
778,504
5,726
7,512
638,505
95,318
4,987
304
4,386
2014
596,080
580,316
38,958
66,477
274,156
171,306
15,764
10,537
4,860
2015
941,890
934,123
1,121
21,600
663,159
179,814
7,767
529
5,867
2016
1,144,192
1,129,869
7,650
39,662
701,372
286,050
14,323
570
2,884
2017
1,155,422
1,140,634
3,486
5,446
763,418
259,069
14,788
707
10,175
Source: Formed by the authors according to: http://www.ukrstat.gov.ua
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Vol. 7 No. 3, 2021
4. Conclusions
At the present stage of human development, the
problem of hospitality helps solve the problems of
migration and interstate hospitality.
Today, the hospitality industry is growing rapidly.
Given modern technologies, market transformation
trends, and the growing demand for hotel services,
the role of marketing in conquering market segments
should not be underestimated. The development and
implementation of a marketing strategy to create and
promote new services in the market is the basis of the
modern hospitality industry.
However, given the cost of this sector of activity,
effective financial investment tools cannot be avoided.
However, when choosing a mechanism to attract
investment, it is necessary to clearly understand their
return and profitability. In this regard, it is advisable
to direct investments only to promising activities, in
particular to innovative projects because innovation
affects economic development and successful financial
and economic activities in the hotel industry.
Given the above, on the basis of the research carried
out, the article substantiates the stages of development
and implementation of targeted marketing in the
hospitality industry.
Based on the proposed stages, the authors form the
concept of the development and implementation of
innovative services in the hospitality industry. Indicators
for assessing the feasibility and effectiveness of investing
financial resources in innovative services for profit are
also summarized.
Thus, the hospitality industry is important not
only for societies but also for the economy. Modern
transformations and changes in the demand of
consumers of hotel services in close connection with
new technological and marketing solutions will allow
for effective management and development of the hotel
industry in the future.
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Krul, H. Ya. (2011).
Basics of hotel business: tutorial.
Kyiv: Center for Educational Literature.
Malskaya, M., & Pandyak, I. (2012).
Hotel business: theory and practice.
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Figure 5. The concept of developing innovative services
Source: Author development
Macro Factor Analysis
Analysis
of the internal
envi ronment
of the hotel
Defining Target Segments
Sales forecast for a new service for a planning
period
Marketin g communic atio ns and the budget
for the promoti
on of servic es
Formation of a marketing section of a business plan
Key market indicators
Competitive environment analysis
Calculation of the effectiveness of the implementation
of innovative hotel services
Baltic Journal of Economic Studies
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The article talks about how it's worth investing in proximity marketing to increase the speed of a customer's decision, increase engagement, and eloyalty. The article states that marketers who know how to use the power of Bluetooth, Wi-Fi or geographical data can display an elastic range of content on mobile devices. The use of beacons, QR Codes, and Augmented Reality will play a role in proximity marketing in the future.

Yum Brands, which runs restaurants KFC, Pizza Hut, Taco Bell and Habit Burger, is integrating technology-centric solutions across its four brands around the world, which could result in an acceleration of disruptive technologies on a large scale. This Digital Innovation Lab then adds information from thousands of Yum Brand restaurants into a cloud facility. The information includes closed-circuit tv from a restaurant's drive-thru and point-of-sale or drive-thru audio. Hundreds of startups then get access to the data to compare their technologies in the lab. They're able to use that information to create more automated services like artificial intelligence, computer vision and the Internet of Things. Yum's idea is by improving automation back of house, employees can focus more time on customer-facing tasks, resulting in more speed and accuracy.