Can you name a business that has 36,258 locations, makes 27.44 billion dollars, and has a brand value of about 86 million? If you are imagining the golden arches you would be correct.
Those numbers are staggering! I'll let you in on a secret though...their sales are down.
Even this billion dollar industry has to get with the times or it will lose momentum. Their sales have been on the decline for the last three years. Since the begininning of of the year sales are down 2.3% globally. It's even more severe than the 1.8% Wall Street expected. When you consider this is a billion dollar company, that ends up being a pretty penny. Several factors have led to this decline but it is clear McDonalds sales demand some sort of mouth-to-mouth to keep the company's relevance.
In response to McDonald’s continue soft business, they are trying to recapture the interest of youth to their quick serve restaurant (QSR). It seems that this youthful generation has an aversion to the Super Sized company. How are they going to do this? They are using technology to zero in on customer satisfaction. This combination will get at the heart of the sales loss. It's not a lack of advertising (watching T.V. for 10 minutes makes that clear); they need to update how customers experience their product. This kiosk will give customers a fun and easy experience perfect for them.
Technology and Lovin' It
The goal is to get 2,000 kiosks across 14,000 Mcdonalds locations nationwide. So you will probably be able to find a location near you with the multi-touch kiosk. The plan is to increase customization and decrease order error. So you will be able to order your food - and be as picky as you want- and get the correct order on the first time. You won't have to go up awkwardly with your burger to say "I ordered the McDouble with NO cheese."
This technology is speaking to this tablet, smartphone having era. We love how technology eases day-to-day tasks and are turning to it to make our lives easier! Domino's ordering app makes it possible to order pizza without calling anyone. Millenials are even on a first name basis with "Dom", the voice ordering Domino app, similar to Siri. I haven't met a millenial who has ever called a cab. Why would they when they can log on to their and get picked up in under 5 minutes and pay with your phone app? Then there is Venmo an app that allows you to share money with your Facebook friends. Now millenials share costs of their excursions easily. After someone buys the dinner for the group friends will just venmo their share. These apps help with day to day tasks ranging from food to transportation making it simple and more efficient to navigate the world. McDonald's kiosks speak to that convenience and might attract the young, on the go, tech savvy youth. It will also improve the experience for McDonald's regulars.
Build YOUR Burger
Along with the convenience of a touch screen, they are introducing a build your own burger option. This is perfect to get the right burger for you. Anyone with a dietary restriction will tell you that ordering QSR food can be stressful because if they get it wrong not only are you inconvenienced, but it could poison you.
However, even if you don't have a diet to adhere to, 40% of consumers say that menu variety is either extremely important. Giving consumers the opportunity to build the right burger for them has the potential to draw new customers who have become disenchanted with the company.
Hey, who said you couldn't play with your food anyway? McDonald’s interactive kiosks allow you to create your own burger exactly to your specifications AND you get to have fun while doing it. This proves once again that technology and customer attention is valuable for any business, even international empires.