McDonald’s 'aggressive change' includes digitization, millennial outreach

Published on 2014-10-29 03:18:40 by KIOSTECH. from: www.kosdisplay.com Views: 13

McDonald's is scrambling for solutions after its profit fell by 30 percent in Q3. The company turned in yet another disappointing quarter, driven by a confluence of negative factors working against the business, including a higher-than-expected tax rate, the supply chain crisis in China, store closures in Russia and the Ukraine and a loss of luster in its flagship US system.


CEO Don Thompson outlined some strategies the company is working on to remedy this continued slide, many of which will be in effect in some capacity in 2015, and comprise more millennial-based outreach efforts such as self-ordering kiosks and a mobile app and payment system.


The company is calling this effort the "McDonald's Experience of the Future." Some highlights of the initiative include:


A broader digital experience that includes ordering, payment and promotions. McDonald's will take a page from its France and Australia systems to implement some of its digital efforts in the US, such as self-order kiosks and mobile ordering. Thompson also pointed out that McDonald's is the only restaurant brand to offer Apple Pay at the drive-thru.

A simplified menu.

A more localized menu.

More customization opportunities as part of its new "Create Your Taste" initiative, which is already underway at self-order kiosks in Australia.

In regards to any concerns about not connecting with the millennial demographic specifically, Thompson said that is a broader QSR issue versus a McDonald's-specific issue. Digital efforts are one way the company is aiming to resonate more with this group.



"The reality is we haven't been changing at the same rate as our customers. So we're changing and we're changing aggressively," he said during the Q3 earnings call. "The key to our success will be our ability to deliver a more relevant experience. We have listened to our customers and we better understand what their future experience should look like – personalized, local, a contemporary and inviting atmosphere and choices on how they order, what they order and how they're served."


We want to make sure we're transparent. There are a lot of misperceptions relative to our food and we want to provide an opportunity for people to ask questions," Thompson said. "On the digital front, we believe digital and mobile technologies and kiosk ordering offer opportunities to allow customers to have a choice in their experience. The ‘Experience of the Future' resonates well with customers around the world."


Giving customers more choice in how they order is important, Thompson said.


The mobile app – or "Global app" as it's called by the company – will evolve throughout the next year as well, and will include mobile payment opportunities and also promotional offers, music and other features.


"We've already moved beyond the Innovation Center and learning labs to implementation in markets such as Australia and France. They will be slightly different in each market but I'm excited to differentiate the brand and grow the business," he said.


In the US, these actions will be fully activated in three markets by the third quarter 2015 and will then be rolled out to additional markets "when they are ready." Global activation is currently underway.