McDonald’s model for serving cheap burgers fast disrupted the food industry in the chain’s early days. Now, the fast food giant is looking to again stir up the market, except this time it plans to use technology to help achieve its goals.
Steve Easterbrook, CEO of McDonald’s, appeared on CNBC’s “Squawk On The Street” show yesterday and said the chain is “doubling down” on technology, such as kiosks in stores to accept customer orders as well as offering online ordering for pickup or delivery.
Last year, McDonald’s announced plans to add touchscreen kiosks and roll out table service to all 14,000 of its restaurants in the U.S.
Mr. Easterbrook also touted the success of the chain’s home delivery tests using Uber Eats. Knowledge gained from a 20-location test in Miami that was then expanded to 200 restaurants has proven invaluable as McDonald’s deploys the program on a much wider scale, he said. He cited accessibility as a benefit, with 75 percent of the U.S. population being within three miles of a McDonald’s.
While in the “early, early days,” according to Mr. Easterbrook, McDonald’s is using digital technology to help move beyond its restaurants in its efforts to be “customer obsessed.” He pointed to mobile order and pay technology and adding a loyalty program to its app as ways the chain is looking “to make their experience with McDonald’s friendlier, more convenient or more fun.” The chain is looking to use digital interactions with customers to gain more insights and improve performance.
Ultimately, he told CNBC, McDonald’s understands that the fast food industry will be “disrupted by technology.” The choice, as he sees it, is to either make use of technology to become “the disrupter” or not pursue its use and become “the disrupted.”
McDonald’s reported that its second quarter comparable sales increased 3.9 percent in the U.S. while operating income improved five percent.
FAQs
Current Uses of AI in Fast Food Chains
Many chains are using AI-powered kiosks and voice-ordering systems to streamline the ordering process. For example, McDonald's has implemented touch-screen ordering kiosks in many of its restaurants, enhancing customer experience and reducing wait times.
How is McDonald's affected by technology? ›
Digital and technological supremacy
Its adoption of mobile ordering, delivery platforms, and digital payments underscores the company's commitment to aligning with the digital preferences of today's consumers. This digital shift is crucial for McDonald's to sustain its leadership in the competitive fast-food landscape.
What could McDonald's do to improve? ›
McDonald's should consider making these six changes if it wants to get back on top.
- Embrace Junk Food And Novelty Items. ...
- Stay Affordable. ...
- Put More Focus On Breakfast. ...
- Spruce Up The Interior Of The Restaurants. ...
- Pay Employees A Living Wage. ...
- Get Some Good Press.
The Company's technology strategy aims to leverage scale and unlock greater speed and efficiency for customers, restaurant teams, and employees. Today, McDonald's and Google Cloud announced a strategic partnership to connect the latest cloud technology and apply generative AI solutions across its restaurants worldwide.
How will technology impact the food industry? ›
Technological advancements continue to appear in the food industry, reshaping food processing, production and distribution. Technology is driving sustainability and safety in the food sector, from innovative solutions in supply chain management to automated manufacturing processes.
How will AI affect the fast food industry? ›
The use of automation in the fast food industry has allowed businesses to reduce errors, improve customer experience, and can increase efficiency. Through the use of kiosks and other self-order machines, customers are now able to have a more personalized experience, while not waiting in long lines.
What is the biggest threat to McDonald's? ›
McDonald's Threats (Examples)
- Competition: Yes, McDonald's currently is the market leader in the fast-food industry because they are ahead of all of their competition. ...
- Emerging Consumer Tastes and Preferences: Consumer trends are the driving force of every business's life cycle.
McDonald's self-service kiosks have emerged as a game-changer in the fast-food industry, significantly enhancing the customer experience. These innovative kiosks have revolutionized how customers interact with the brand, providing greater convenience, customization, and control over their dining journey.
Did McDonald's suffer global tech outage forcing some restaurants to halt operations? ›
McDonald's suffers global tech outage forcing some restaurants to halt operations. McDonald's suffered a system failure Friday that left customers in some parts of the world unable to order food. McDonald's Japan took to social media site X to say that operations at stores nationwide were temporarily suspended.
Who is McDonald's main competitor? ›
McDonald's is one of the largest and most well-known fast-food chains in the world. Privately-owned Burger King is McDonald's closest competitor. Yum Brands operates Taco Bell, KFC, and Pizza Hut. Subway is the largest restaurant chain in the world in terms of size, but sales have been sliding since 2012.
Double Down on the Four D's
Consumers are increasingly choosing off-premise dining and we are adapting the McDonald's experience to meet their needs by doubling down on Digital, Delivery, Drive-Thru and Restaurant Development.
What is the future strategy of McDonald's? ›
We're leveling up our digital experiences.
Beginning in 2024, McDonald's will also deploy a new, bespoke operating system on which all McDonald's customer and restaurant digital platforms will run, from the mobile app to Loyalty and kiosks in store.
What is McDonald's digital strategy? ›
This strategy involves enhancing customer experience through digital innovations, such as web-based ordering and personalized loyalty programs.
Why are they protesting McDonald's? ›
Why it matters: Alonyal last October sparked global boycotts against McDonald's, particularly in some Muslim-majority countries, after saying it would donate free meals to the Israeli military. It also gave out meals to Israeli police, hospital workers, and residents near Gaza.
Who provided the technology for the automated Mcdonalds? ›
McDonald's is tapping Google Cloud's generative artificial intelligence (AI) tools as restaurants increasingly integrate the technology into more parts of their business.
How does technology affect the way people eat? ›
From online ordering and delivery to automation, technology is transforming the way we order, prepare, and enjoy our meals. Restaurants that stay up to date with these technological advancements will be able to meet the changing needs of their customers and also stay competitive in the industry.
How does technology influence the cooking of food? ›
Modern cooking techniques, backed by technological marvels, have revolutionized our kitchens. Devices like sous vide machines or immersion blenders have democratized gourmet cooking, allowing even amateurs to produce restaurant-quality meals.
How does technology affect food waste? ›
New digital technologies can help rein in food waste by monitoring food freshness, extending shelf-life and pricing food close to expiry more attractively. This can support the creation of more sustainable food systems as well as tackle the climate crisis and hunger.
How has technology greatly increased food production in the world? ›
Drones, robots and "intelligent" tractors
Together, these agricultural technologies helped farmers reach new levels of precision and efficiency in crop management – down to the square meter. Today, drones are used in agriculture by both large scale and smallholder farmers all over the globe.
