OAK BROOK, Ill. -- McDonald’s is focusing heavily on technology advancements in order to enhance the dining and ordering-transaction experience for its guests. The chain’s latest tech-forward initiatives are putting convenience and next-level service formats in the spotlight.
CSP's colleagues at Restaurant Business highlighted a breakdown of McDonald’s recent efforts to reinvigorate its service capabilities. Here's a closer look at the innovations that may have direct implications for convenience-store retailers …
McDonald’s strides in technology have stemmed from a few consistent goals: to increase customer counts by retaining current patrons, to win back consumers who defected to other restaurant brands during McDonald’s past struggles, and to boost the frequency of what it called “casual customers.”
Beginning with digital platforms, McDonald’s expects to launch mobile order and pay in some of its largest U.S. markets starting in the fourth quarter. It is testing the system in 29 California units and 51 Washington locations.
The chain plans to use its mobile app to speed up to-go service by offering customers three ways to pick up mobile orders: in the restaurant, via curbside delivery or through the drive-thru. To account for the anticipated influx of mobile orders, McDonald’s is redesigning its kitchens with improvements such as modular configurations and new equipment to speed up service and improve work flow.
McDonald’s is testing delivery through UberEats in Florida and plans to expand that test later this year.
“With 14,000 restaurants in the United States, we are structurally advantaged to win in delivery,” said Chris Kempczinski, McDonald’s U.S. president, during the company’s Investor Day in March.
Why? Because of its proximity to customers. The chain claims nearly 75% of the population lives within 3 miles of a McDonald’s restaurant.
The company’s international performance indicates success in off-premise already. It reports annual systemwide delivery sales of nearly $1 billion across various markets, including China, South Korea and Singapore.
By the end of this year, McDonald’s plans to add its kiosk and table-service initiative to 650 U.S. units, bringing its total number of updated locations to 2,500. McDonald’s has been testing the program since 2015 and plans to expand it to all 14,000 of its U.S. locations. McDonald’s said units already updated with kiosks and table service have experienced sales gains in the mid-single digits.
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