McDonald’s Forges Forward with ‘Experience of the Future’

McDonald’s Corporation has announced the modernization of more than 1,000 stores in the United States. Company President and CEO Steve Easterbrook told shareholders on a recent earnings call of going forward “with the most significant transformation ever undertaken.” 

According to the report, the more than 12,000 McDonald’s locations in the U.S. will have digital menu boards, self-ordering kiosks, and updated aesthetics by the end of 2019. Easterbrook continued with:

“They still have hard work ahead, but we are seeing an encouraging response from customers in restaurants when many of these improvements are already completed.”

With the goal of even higher customer satisfaction set, the McDonald’s chief iterated that the U.S. upgrades are actually falling behind efforts already undertaken in Canada, the U.K., and Italy.  Pointing to these markets, 
Easterbrook said revenue in those markets has even grown since the upgrades have been put in place.  Kevin Ozan, who’s Chief Financial Officer of the company, offered this: 

“Initiatives deployed across the U.S., from delivery to self-order kiosks, also contributed to the higher check. The U.S. plan is grounded in the importance of delivering a mix of higher average check and comparable guest count growth. As guest counts remain a challenge, we’re focused on increasing customer visits.”

McDonald’s Corp. has posted 13 consecutive quarters of positive global comparable sales as of the third quarter ended Sept. 30, 2018, according to Ozan. The company says it has made “substantial progress modernizing restaurants around the world, enhancing hospitality and elevating the experience for the millions of customers we serve every day.” 

Steve Easterbrook went on to explain the substantial growth for the company by attributing delivery, digital and experience as the “catalysts for sustained growth.” Easterbrook continued:

“As we continue to maximize the impacts of these accelerators, we are expanding choices, enhancing convenience and elevating the overall experience for McDonald’s customers.”

McDonald’s plans to expand delivery.  To date, more than 15,000 McDonald’s worldwide offer delivery, and is expanding its global partnership with third-party delivery service Uber Eats. By the end of the year, 9,000 U.S. stores will offer delivery. As for overseas markets, the U.K, Australia and France, delivery now represents as much as 10% of sales, and customer satisfaction remains high, according to Easterbrook.

McDonald’s is integrating delivery orders into its POS systems at some locations, and is now exploring additional innovation opportunities ranging from integrating delivery ordering through our mobile app to new packaging that will protect the quality of our food to new approaches that improve efficiency at our restaurants with the highest delivery volumes. 

The global QSR is also adding self-ordering kiosks and has them in 15,000+ locations. In European markets, customers have embraced ordering through the self-ordering kiosks. “In France, Italy and Spain, well over half of all in-restaurant visits are transacted through the kiosk,” Easterbrook said. The kiosks are supported by “guest experience leaders.” Some locations also have table service.

In addition, McDonald’s continues to engage customers through its global mobile app. During the quarter, downloads and registered users in the U.S. market doubled, driving more transactions through the app. 

McDonald’s continues to lead in innovation in China as well. About 75% of all locations in the company’s second biggest market have embraced the Experience of the Future concept to date. And the Chinese locations are “system leading for us in terms of delivery.” One Beijing location has a dedicated delivery pickup area – that’s separate from walk-in customers – in the front of the restaurant.

McDonald’s operates more than 37,000 restaurants worldwide.