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Dragontail Systems (ASX:DTS) and Pizza Hut expand contract

Consumer Discretionary
ASX:DTS
06 April 2020 13:09 (AEST)

Pizza Hut has extended its contract with Dragontail Systems (DTS) following significant improvements in customer satisfaction and store performance.

Originally expiring in January 2021, the contract has now been extended to January 2023.

In December 2019, Dragontail announced it would be speeding up the Australian rollout of its Algo Platform to 250 Pizza Hut stores across the country.

Installation is now expected to be completed during the second quarter of 2020.

Dragontail’s Algo System uses a sophisticated optimisation algorithm that manages the entire process of food handling and delivery.

The system looks at every order location, drive location and meal status, therefore eliminating the need for a human manager.

With food preparation and delivery being a fast-packed business, it’s sometimes difficult for human managers to handle everything at once.

Algo calculates every single second and displays the best possible decisions in the kitchen, service, and dispatch areas.

Restaurants with Algo have seen significant improvements in the overall operation, as well as reduced labor costs, improved customer service, and online tracking.

Dragontail and Pizza Hut will now move forward with extra projects that will aim to further enhance customer experience and store performance.

Both are also looking at a detailed delivery solution that will use Algo and DoorDash.

In July 2019, Dragontail partnered with logistics and food delivery company, DoorDash, which connects people with food outlets in their city.

The new Algo – DoorDash combination will provide the quickest delivery time while also keeping the food “hot and fresh”.

“The strong relationship between Pizza Hut Australia and Dragontail is enabling both companies to keep introducing new technology solutions,” Dragontail Managing Director Ido Levanon commented.

“After DoorDash picked Australia for its first move outside of North America, the three companies (DoorDash, Pizza Hut Australia, and Dragontail) are looking at a one-of-a-kind solution that is aimed at achieving the best possible delivery times while providing “out of oven out of door” service which assures the pizzas are always delivered hot and fresh,” he added. 

Dragontail is up 7.69 per cent and shares are trading for 14 cents each at 12:49 pm AEST.

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