A major Pizza Hut franchisee is suing the pizza chain, claiming gig workers leveraged its AI system for their own benefit, causing “cascading operational breakdowns” that pummeled sales at more than 100 locations.
Pizza Hut franchisee Chaac Pizza Northeast—which operates more than 110 Pizza Huts across New York, New Jersey, Maryland, Washington, D.C., and Pennsylvania—filed a lawsuit in Texas Business Court earlier this month claiming that its franchiser’s Dragontail Artificial Intelligence system gave outsized visibility of operations to third-party delivery drivers, enabling them to prioritize certain orders, slowing delivery times and throttling customer satisfaction. The litigation was first reported by Restaurant Dive.
