McDonald's To Launch New Mobile, Online Ordering To Help Speed Service

By Christine Kern, contributing writer

Burger Chain jumping on the technology bandwagon to increase service efficiency

McDonald’s has been slow to adopt the new technologies, taking a backseat to chains like Starbucks and Panera Bread to date, but they have now vowed to change that.

CEO Don Thompson told investors that “We were late to coming to the part, but we will catch up and accelerate.”

The Brand has been experiencing decreasing sales, and as part of their third quarter reporting, McDonald’s announced several new initiatives to try to turn sales around. The new global approach, designed to increase its relevance with customers and drive guest traffic, is focused on three specific areas:

• McDonald's Experience of the Future – “a comprehensive restaurant execution concept that elevates the menu and customer experience elements that are hallmarks of the McDonald's brand, and capitalizes on investments in reimaging, service and technology enhancements to improve the look, feel and convenience of the McDonald's experience in ways that are in-tune with today's consumer needs,”
• Digital Strategy - a global strategy built around simplifying the customer process from ordering and payment to mobile offers,
• Resourcing for Growth – “a diligent review of the organization's structure and use of resources in order to redirect spending toward those initiatives, such as the digital strategy and the McDonald's Experience of the Future, that will support the Company's key long-term growth initiatives.”

Thompson stated, "We recognize that we must demonstrate to our customers and the entire McDonald's System that we understand the problems we face and are taking decisive action to fundamentally change the way we approach our business."

The Brand Channel reported that the chain once again posted a monthly decline in comparable-store sales for November, with a globaldecrease of 2.2 percent in November sales. U.S. sales fell the furthest, with a stunning drop of 4.6 percent attributed to what McDonald's called "strong competitive activity."

McDonald’s will place the focus on technology to turn things around, according to the Nation’s Restaurant News, including the addition of mobile and web ordering and payment, and the installation of kiosks to increase speed of service. They are also adding to its digital workforce, including the opening of a new corporate office in Chicago to house the digital team. The chain plans to increase its digital staff from 20 to over 200 by the end of 2015, according to the Chicago Tribune.

The mobile ordering and payment has the potential to speed up service in the restaurants, Thompson explained. “This is a shift in the way we engage with customers, and a shift in the way we talk to consumers in general,” Thompson said.

“If you want to come into the restaurant and you don’t want to talk to anybody, you can place a mobile order,” he added later. “Go to the pick-up area, pick up your food, and you’ll be on your way.”

The technological rollouts are in addition to efforts to trim the menu items, the introduction of the Create Your Taste, customization platform, and their new commercial campaign that “comes clean” about their ingredients.