Pizza Hut's AI delivery system sparks $100 million franchisee lawsuit — deliveries allegedly jumped from under 30 minutes to over 45 under the new system

Pizza Hut franchisee Chaac Pizza Northeast is suing for $100 million over the chain’s Dragontail AI delivery system.

The company alleges the system slowed deliveries, reduced sales, and worsened customer metrics across more than 100 restaurants.

Chaac says the issues caused business losses and breached the franchise agreement.

The dispute adds pressure on Pizza Hut and Yum Brands as they weigh broader brand strategy and possible divestment.