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The great digital revolution McDonald's has begun

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Very interesting conference that managers global giant burgers, led by its CEO, Steve Easterbrook, They offered a few days ago in Chicago to explain to investors the new global growth plan.

McDonald's is willing to implement major organizational changes, as customer visits to its restaurants have been reduced by more than 500 million since 2012. They need to start to fight back thousands of small and medium hamburger chains that have emerged in recent years, in addition to its traditional competitors, as in the case of Burger King.

His new global plan is based on 3 key growth levers:

  1. boost Home delivery
  2. include table service
  3. Enhance the order through digital kiosks and mobile applications

The deliveries will be one of the great bastions in the global growth of McDonald's, They claim their managers: “We are in a unique position to become the great world leader in distribution”.

Home deliveries are now available 24 hours and 7 weekdays in China, South Korea and Singapore, where nearly one billion sales were generated through this channel. The new plan suggests that This service will be launched at five major markets the company, U.S, France, United Kingdom, Germany and Canada, where he 75% of the population lives within 5 km of a McDonald's restaurant, which it represents a significant competitive advantage over its rivals.

In China the company It has tripled its home delivery business since its launch in 2008. Only in 2016 in China the home delivery business grew 30%.

At the moment the restaurant chain is experimenting with different delivery models, from its own distributors to partnerships with external companies, with the to standardize a definitive model, depending on the country or area.

In a Bloomberg interview, Vice President Lucy Brady reveals that “home deliveries are a market of more 100 billion that it has exploded. It is a great opportunity that we have not even begun to tap”.

On the other hand, McDonald's also wants to bet on a different experience for its customers in the restaurant itself, boosting digital relationships through technological support.

The digital kiosks ORDERING on site will be increasingly common worldwide, but with one important change it is that the customer does not pick up the order but McDonald's staff will deliver at the diner's table.

He new service ordering and payment via mobile phone It will also allow customers to bypass the time spent at the counter and pick up your food on arrival no waiting time. This feature to ask, pay through mobile and pick up at the restaurant It will be launched over 20.000 restaurants by the end of this year 2017.

The entire chain will be immersed in a renewal plan for changing its image is called “Experience the Future” in which they invest 1.1 million and it involves the incorporation of digital kiosks, personalized restaurants, digital menu boards and table service customers. It is expected that this comprehensive plan is fully implemented by the year 2020.

It seems that the new plans of the company have been very well accepted by the market and have generated enough trust so that their actions continue at record highs, as you can be seen in the chart below:

Definitely, McDonald's faces a new era caused by an increase in direct and indirect competition and the growth of a consumption trend towards increasingly healthy food and nutritious food that is affecting its sales.

Delivery food delivery will be crucial for increasing the income of different markets, with a much more aggressive digital strategy that will enable it to fulfill the objectives of sales growth in the long term are encrypted between the 3% and the 5% from 2019, as well as improved operating margins between 20% and the 40% and reduced administrative costs between 7% and the 8%.

A new era based on a digital processing Global Company, to understand that restaurants are no longer limited by physical space tables and chairs, where the context now puts the client and this choose where and when you want to live your dining experience, something that we came “preaching” in this newspaper a long time.

Perhaps it is time that if customers do not go to McDonald's, McDonald's has to go for customers. I confess that I´m lovin’ it.

The great digital revolution McDonald's has begun
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About the Author

Diego Coquillat

Director and CEO of DiegoCoquillat.com, teacher, consultant, lecturer and entrepreneur incorrigible. If you can not find it here, search near the sea. Passion for new technologies and restaurants ... passion for life.

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