Tech that talks
Lost in some of the stock scurrying Tuesday was McDonald’s sizable tech updates. Notably, delivery.
Easterbrook said the channel is expected to drive $4 billion in sales for the brand this year, or roughly 4 percent of its global business. That’s four times what it was just three years ago. Delivery has expanded to 23,000 or so restaurants in more than 80 countries and, throughout the system, produces average checks twice those seen in-store. McDonald’s broadened its U.S. reach this year by adding DoorDash and GrubHub after exclusively operating with UberEats.
Easterbrook said McDonald’s witnessed an increase in average restaurant McDelivery orders in units when it brought on DoorDash—a push that came with a 1-cent Big Mac offer to generate awareness. “Delivery remains a big frontier for our business, and we still have a long way to go, even with our existing customers, to encourage awareness and trial,” he said.
To illustrate how sizable this frontier truly is, Easterbrook added, customers are currently placing 10 delivery orders per second on average globally. So, just during the company’s nearly hour-long call Tuesday, there were roughly 36,000 McDelivery orders.
The brand’s "McDelivery Night In" took place in 50 markets this year, double from 2018, and led to a 25 percent-plus lift in global business. The halo effect the following day drove the most delivery orders on a single day in company history, Easterbrook said.
"As we prioritize awareness and trial, we're encouraged by data showing that new or lapsed users accounted for a significant portion of the global sales lift," Easterbrook said.
As for other changes, McDonald’s Dynamic Yield technology is now live in more than 9,500 U.S. drive thrus, with full rollout to every restaurant with an outdoor digital menuboard expected by year’s end. All of Australia is also expected to onboard by 2020.
“Ultimately, Dynamic Yield will facilitate a range of personalization benefits where we can leverage knowledge of the customer and order patterns to provide a tailored experience in restaurants, at the drive-thru and on our app,” Easterbrook said.