McDonald's To Expand Delivery Options And Mobile Ordering

05 March, 2017, 01:15 | Author: Essie Rivera
  • McDonald's on Wednesday said it is testing food deliveries and will launch a mobile order and pay platform in U.S. restaurants in the fourth quarter

Today, drive-thrus account for 70 percent of fast-food sales.

In the restaurant chain's largest markets - the U.S., France, the U.K., Germany and Canada - nearly 75 percent of the population lives near a McDonald's.

Plans have already been announced to launch a mobile pay platform for U.S. customers. McDonald's China has tripled its delivery business since launching it in 2008, and previous year alone, its delivery business in China grew by 30%.

Asked by an analyst why a person would order McDonald's once delivery is widely available in the restaurant industry, Easterbrook said the chain's expansive footprint gives it the advantage of being able to get food to people more quickly. Starbucks Corp. already offers mobile order-and-pay, an option the coffee chain has hailed as a success but also blamed for creating congestion at pickup counters.

Chris Kempczinski, McDonald's USA President revealed during the meeting with investors held in Chicago on Wednesday that the organization lost more than 500 million clients to close contenders since 2012.

They've announced plans to roll out their own delivery services in a bid to combat falling visits to their restaurants over the past five years. Even more on-trend, app-enabled customers can personalize their orders and get curbside delivery, skipping the drive-thru line entirely.

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McDonald's already offers a food delivery service in China, South Korea and Singapore. In the United States, the chain will roll out its mobile ordering app at the end of the year.

There has been some concern that hamburgers and rivals won't travel well as pizza, though Jack in the Box (JACK), which is testing late-night deliveries, said its customers are "forgiving". China has tripled the company's delivery business since its launch in 2008, growing 30% in 2016 alone.

The goal is "progress over perfection", said Sappington, who added that McDonald's will also debut "mobile order and pay" in about 6,000 global locations by year-end as it works to add a loyalty program and customization.

"Currently, McDonald's is experimenting with different delivery models including partnering with third parties for ordering and fulfillment throughout the world", the company said.

Shares of McDonald's closed up 1.1 percent at $129.05 after hitting a nine-month high of $129.99.

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