McDonald's spends millions on technology to boost drive-thrus



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The technological transformation of McDonald's has gone a little more exaggerated.

Golden Arches unveiled its largest acquisition in over 20 years Tuesday, acquiring the private technology platform Dynamic Yield. McDonald's did not release a purchase price, but a source close to it said McDonald's paid more than $ 300 million for Dynamic Yield.

Dynamic Yield will allow McDonald's to customize its popular drive-thrus in an attempt to sell additional items and, by extension, make more money per visitor. Think of it this way: you get to the McDonald's drive-thru and the digital menu offers suggested items (using Dynamic Yield technology) based on time of day, weather, current restaurant traffic and trend menu items.

With the restaurant industry trying to figure out every penny it could pay for digital investments and higher hourly wages, McDonald's buying a technology platform like Dynamic Yield makes sense. And, for allegedly $ 300 million, it looks like a steal ahead of an Uber IPO, in which Uber Eats could get disproportionate valuation.

The company plans to launch the technology first in the US and then take it internationally.

McDonald's makes a great check to buy the Dynamic Yield technology platform. The technology provider will allow McDonald's to offer customized items on its digital drive-thru menu boards.

McDonald's CEO Steve Easterbrook sold the acquisition as a means to be similar to the web experiences offered by Amazon, Best Buy or Walmart.

"When we reflect over the last four years, our owners / operators, our developing licensees and the corporation, we all invest in the technology needed to make the overall customer experience more relevant, easier, more enjoyable with the ultimate goal. for a much more personalized experience, "Easterbrook said in an in-house employee and franchisee video obtained by Yahoo Finance.

"When we enter sites like Amazon, Best Buy or Walmart.com, when you position your cursor over an item and click and it enters your shopping cart, it automatically suggests other items associated with it. This technology can work with the smart menu boards we have, "added Easterbrook.

He also thinks the technology will help ease drive-thru congestion at peak times, which is always a problem for McDonald's.

The acquisition marks only the latest technology initiative presented by Easterbrook. McDonald's now has self-service kiosks in 17,000 of its more than 36,000 restaurants worldwide. It has digital menus in 22,000 restaurants. The company's revised mobile app has mobile ordering and payment capabilities (at Starbucks).

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