McDonald’s CEO Steve Easterbrook has recently outlined its digital strategy to enhance customer experience at the food retail chain.
McDonald’s reported 3 percent drop in revenue to $5.163 billion, while operating income dipped 7 percent to $1.999 billion in 2018.
McDonald’s has foods retail shops in nearly 38,000 locations in over 100 countries around the world.
Daniel Henry is the global CIO for McDonald’s — responsible for the global technology including restaurant and digital technologies, the infrastructure technology platforms that support the food retail business.
Digital achievements
McDonald’s business in Germany is outperforming rivals as customers enjoy modernized restaurants and the benefits of digital engagement programs.
McDonald’s achieved positive results in Italy from investing in Experience of the Future and maximizing the business impact of other Velocity Growth Plan initiatives such as digital and delivery.
“We will continue making strides through digital channels to reward customers with good value and relevant offers as well as incorporating fun experiences they appreciate from our brands,” McDonald’s CEO Steve Easterbrook said.
McDonald’s deployed self-order kiosks in nearly 17,000 restaurants, digital menu boards in more than 21,000 restaurants and new capabilities from low bottle room pay as available in over 22,000 restaurants.
McDonald’s expects to spend roughly $2.3 billion of capital in 2019 — dedicating nearly $1 billion to complete 2,000 EOTF projects in the U.S. Its capital expenditures were $2.7 billion in 2018 completing about 4,500 EOTF projects in the U.S.
McDonald’s will be stepping its investment in technology as it plans to open roughly 1,200 new restaurants this year. It will spend $600 million of capital to open about 300 restaurants in wholly-owned markets.
$300 million deal?
McDonald’s has acquired Dynamic Yield, a provider of personalization and decision logic technology, based in New York and Tel Aviv.
WallStreetJournal reports McDonald’s will pay more than $300 million for the firm in its first acquisition in years and its biggest deal in two decades.
Dynamic Yield consults with retailers to provide personalized digital promotions to consumers using streams of customer data, and its customers include IKEA, Forever 21 and Fendi, according to the company’s website.
McDonald’s will utilize decision technology to provide personalized customer experience by varying outdoor digital Drive Thru menu displays to show food based on time of day, weather, current restaurant traffic and trending menu items.
The decision technology can instantly suggest and display additional items to a customer’s order based on their current selections.
McDonald’s tested decision technology in several U.S. restaurants in 2018. McDonald’s will roll the decision technology in the Drive Thru at restaurants in the United States in 2019 and expand the use to other top international markets.
McDonald’s will also integrate the decision technology into its digital customer experience touchpoints, such as self-order kiosks and McDonald’s Global Mobile App.
McDonald’s has developed McDonald’s Global Mobile App, Mobile Order and Pay, indoor and outdoor digital menu boards and self-order kiosks as part of the vision to transform customer experiences in and around its restaurants.
Rajani Baburajan