<div id="readability-page-1">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. In April, KFC partnered with BYD to gradually install more charging stations at its drive-through stores nationwide. The two firms are launching a nine-minute, one-stop service for drivers, combining fast charging and catering. BYD owners can order and pay via voice control, pick up meals at the drive-through stores, and charge their cars on-site, with the process taking nine minutes in total. The function, currently available on a single model, will be launched on more models next year.  The Chinese EV maker said it has built more than 5,000 ultra-fast charging stations across the country, and aims to expand the network to 20,000 by the end of this year. “Leading fast-food brands must build differentiated advantages to break the growth bottleneck,” said Fu Yifu, a special research fellow at Su Merchants Bank. “By providing charging facilities, it can help extend the stay of consumers and raise the intention of repurchase. Cross-industry collaboration can generate brand synergy, effectively boost store exposure and drive sales growth.” Growing demand among car owners for convenient meal pickup and charging has built a large, solid customer base to underpin the development of this business model, according to analysts. By the end of last year, China’s total EVs on the road reached 44 million, accounting for 12 per cent of total motor vehicles, while there were 525 million licensed drivers, according to the Ministry of Public Security.  Separately, in late April, McDonald’s announced it had completed digital upgrades at over 80 drive-through locations in Beijing. Consumers can order in advance using a WeChat mini-programme, and the system tracks the location of cars so customers can pick up their food without queuing. McDonald’s said it has also completed digital upgrades at 53 drive-through stores in Shenyang and Dalian in Liaoning province. “Western chains are upgrading drive-through formats with more digital tools. What is more distinctive in China is the tighter integration of drive-through, in-car ordering, digital payment and, in some cases, EV charging,” said He of Fitch Ratings. “Drive-through in China still has room to expand, but the market is unlikely to simply replicate the classic US model. I believe the stronger growth driver is likely to remain digital convenience overall, especially ordering, pickup and delivery,” she added. David Zhang, general secretary of the Shanghai-based International Intelligent Vehicle Engineering Association, said cooperation between an EV maker and a fast-food chain was an innovative business model that delivered a win-win outcome. Similar partnerships could also be explored between carmakers and other retail players, including convenience stores, coffee chains and milk tea brands. </div>

YUMC

<p>KFC is expanding its electric vehicle (EV) charging stations and McDonald's is enhancing digital services at drive-throughs in China to attract more customers amid intense competition. KFC operates over 7,000 drive-throughs and aims to improve efficiency through technology. Analysts note that the integration of EV charging and digital ordering is key to meeting consumer demands for speed and convenience. McDonald's has upgraded over 80 drive-throughs in Beijing, allowing pre-orders via WeChat. This trend reflects a shift towards digital convenience in the fast-food sector, with potential for further growth in China.</p>

- KFC and McDonald's are enhancing their drive-through services through digital upgrades and EV charging stations to attract more customers amidst competition.  
- KFC has expanded its drive-through presence and partnered with BYD to install charging stations, while McDonald's has implemented a WeChat system for efficient order pickups at its locations in Beijing.  
- Analysts suggest that these innovations cater to a growing demand for convenience among car owners and may lead to increased sales and customer loyalty across the fast-food industry.

SCMP

YUM China

McDonald's

KFC, McDonald’s drive-throughs in China get EV charging, upgraded smart systems