After admitting that McDonald’s did not anticipate that their customers expectations would grow beyond their historic quality and service standards, the burger chain giant has now recently announced their long-term growth strategy to recover and boost their performance going forward.
McDonalds are putting their focus into convenience and technology in an attempt to draw in customers from competing quick service restaurants. They announced the introduction of mobile order and pay in 20,000 restaurants by the end of 2017, adding that the technology will accelerate its growth in delivery.
“As customers’ expectations increased, McDonald’s simply didn’t keep pace with them,” the company said in its statement. “Making meaningful improvements in quality, convenience, and value will win back some of McDonald’s best customers.”
In the U.S., they will also accelerate roll out of its “Experience of the Future” restaurant design - which will contain “kiosk” ordering and table service. The idea is to embrace and allow for consumers being increasing likely to purchase using a mobile app in a “more modern, more exciting restaurant environment.” Through the mobile order and pay feature, McDonald’s says its customers will also be able to skip the drive thru and choose curbside delivery. If customers choose the drive thru, they will read the already placed order code from the app and the order will be ready for pickup at the window.
McDonald’s plans to remodel around 650 restaurants in 2017 to the Experience of the Future design, and when combined with previously modernized restaurants, the U.S. will have around 2,500 locations. By the end of 2020, the company intends to have most of its U.S. free-standing restaurants updated to this design.
“To deliver sustained growth, we have to attract more customers, more often,” president and CEO Steve Easterbrook said in a statement. “Our greatest opportunities reside at the very heart of our brand—our food, value, and the customer experience.”
McDonald’s says it is “uniquely positioned to become the global leader in delivery.” According to their own internal data, in its top five markets, nearly 75 percent of the population lives within 3 miles of a location. Last year, McDonald’s China delivery business increased by 30 percent.
“Through enhanced technology to elevate and modernize the customer experience, a focus on the quality and value of our food and redefined convenience through delivery, we have a bold vision for the future and the urgency to act on it,” Easterbrook says. “We are moving with velocity to drive profitable growth and becoming an even better McDonald’s serving more customers delicious food each day around the world.