McDonald's Will Soon Offer Delivery

Edith Mcgee
March 5, 2017

McDonald's faces competition not just from other big fast-food players, but from newer rivals that largely emphasize freshness and taste, as well as the availability of food at convenience stores such as 7-Eleven and supermarkets.

As for delivery, McDonald's executives pointed out that in key mature markets like the U.S., France, Britain, Germany and Canada, some 75% of people live within three miles of a restaurant, allowing it to use its network to bring food directly to customers' homes.

Through technology, delivery has changed the way customers order, pay, track and receive food and provide feedback, ' the company said in a statement.

Hottovy said he thinks the changes McDonald's is making in the kitchen and dining room in particular will make the mobile order rollout go far smoother than many observers expected when the chain first announced its intentions a year ago.

At its Investor Day presentation this week, McDonald's Corp. executives took investors and analysts and a few media members on a series of demonstrations that reveal what they see as the chain's future. Starbucks' (SBUX) mobile order and pay platform has also been popular.

McDonald's point to a 30% increase in China's delivery business in 2016 - its popularity there could be a main reason for potentially rolling out the model across Britain.

More than 3,500 McDonald's restaurants, primarily in Asia and the Mid-East, offer delivery.

Customers who order through the app will be able to choose curbside delivery or to retrieve their orders at the drive-thru window, by reading a delivery code to the employee.

It plans to make mobile ordering and paying available in 20,000 restaurants across some of its largest markets, including the United States, by the end of the year. While it already has a massive delivery business in China and other markets overseas, it's not availableeverywhere.

Those restaurants are seeing sales gains of 4 to 8 percent and, in general, have higher customer satisfaction scores, Easterbrook said. When exchanging continued, McDonald's stock rose 1.3 percent.

Seeking to offer a more convenient and enjoyable in-store visit, McDonald's Experience of the Future restaurant concepts that are already in several global markets will expand to approximately 2,500 USA locations by the end of 2017.

Other reports by Ligue1talk

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