Chaac Pizza Northeast, a Texas-based franchisee operating 111 Pizza Hut restaurants, sued Yum Brands in Texas Business Court over the company’s mandatory Dragontail AI delivery-management system. The franchisee alleges the AI tool gave delivery drivers real-time visibility into kitchen queues, prompting them to wait and stack multiple orders instead of delivering promptly, and disrupted integrations with third-party delivery platforms. Chaac says on-time delivery rates collapsed and year-over-year sales growth in some markets swung from double-digit gains to double-digit declines, alleging roughly $100 million in lost business and enterprise value.