- Pizza Hut has been sued by one of its franchisees who claims the mandatory implementation of its AI-based delivery system, Dragontail, caused significant operational failures and a $100 million loss.
- The lawsuit, filed by Chaac Pizza Northeast, claims that before Dragontail was brought in, over 90% of deliveries arrived within 30 minutes, but the AI system led to "slower delivery times, colder product (caused by delays), and reduced customer satisfaction."
- Chaac Pizza Northeast operates over 100 Pizza Hut restaurants across several US states and accused Pizza Hut of forcing continued use of the system despite "materially degrading delivery metrics."
- The suit says after the rollout, DoorDash delivery drivers were able to see when pizzas would come out of the oven. They would wait up to 15 minutes for multiple orders to be ready before grabbing them, slowing down delivery, according to the lawsuit.
- A Pizza Hut spokesperson told several outlets that it was reviewing the lawsuit and will respond “through the appropriate legal channels.”
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