Dragontail Systems looks to upgrade food service industry with cutting edge technology

Dragontail Systems ASX DTS KFC Philippines
KFC Philippines will be piloting the ‘Algo’ platform, with the potential to be rolled out across more than 230 stores.

Food preparation techniques are being revamped by modern technology and increasing commercial returns made by restaurants including the likes of pizza vendors and major fast-food outlets such as Kentucky Fried Chicken (KFC), according to food service industry enabler Dragontail Systems (ASX: DTS).

The ASX-listed company has just signed its second full-service installation agreement in less than a week after Salvatoré agreed to install its proprietary Quick Service Restaurant (QSR) and Algo system across its chain of restaurants. Last week, Dragontail agreed to a deal on similar terms with Top Tomato, a US-based chain of pizza restaurants.

The technologies developed by Dragontail use “sensors and cameras to automatically monitor the preparation and cooking process” in the kitchen, to improve the quality and consistency of meals. Dragontail also says its technology is capable of “optimising the entire production process from initial order to delivery at the customer’s house.”

The news saw Dragontail shares sizzle and jump as high as A$0.22 per share, up around 22% on the day.

Improving food preparation and commerce

Salvatoré currently operates 12 pizza restaurants in Quebec, Canada, with another opening in August 2018. The restaurateur has agreed to install Dragontail systems in all its outlets by July 2018 and to make the technology “mandatory” in all new outlets opened henceforth.

Meanwhile, its other major client Top Tomato manages 40 stores under several different brands including Georgio’s Oven Fresh Pizza, Pizza BoGo and UpperCrust in the US, with Dragontail saying that full integration across all 40 stores is likely to take around two months.

According to Dragontail, full-service installations more than double its revenue per store which currently reach up to US$400 per store, per month.

“I am delighted to have signed our second full-service technology solution agreement in North America within the space of one week. Our passion is to provide Quick Service Restaurant and other food service operators with revolutionary technologies and unique solutions that help them run their businesses more efficiently,” said Mr Ido Levanon, managing director of Dragontail.

“We believe we are the only technology provider globally providing a full-service solution that manages online ordering, point-of-sale, kitchen and delivery,” said Mr Levanon.

Asian allure with KFC

In addition to its commercial momentum in North America, Dragontail has also signed a deal with KFC Philippines that will see its Algo technology piloted at three stores over June and July 2018.

If successful, the Algo platform could then be rolled out across more than 230 KFC stores in the Philippines by early 2019.

“We are confident KFC Philippines will experience an immediate and significant return on investment through improved food quality, kitchen efficiency and customer feedback, optimised resources and reduced operating costs, as other Pizza Hut and KFC operations have,” said Mr Levanon.

Mr Levanon also thinks that seeing its technology being implemented at widely popular consumer favourite chains such as KFC is a key aspect of the company’s Asian growth strategy and could serve as a springboard to greater success across the continent.

“This pilot is further evidence of our growing relationship with KFC globally. We will shortly present at the KFC global franchisee conference in Orlando – the only delivery optimisation technology company invited to do so. This is on top of the positive reception we received to our presentation at KFC Asia’s regional ‘store of tomorrow’ convention in January,” said Mr Levanon.