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McDonald's sees home delivery potential

News, 06 March 2017
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CHICAGO: McDonald's, the quick service restaurant chain, last week unveiled its global growth plan, which included a strong hint that it plans to roll out a home delivery service in its top five market to reignite sales and win back customers.

The company said it is already one of the largest providers of delivered food in the world, amounting to nearly $1bn a year, and that its delivery business in China has tripled since its launch in 2008. In 2016 alone, China’s delivery business grew by 30%.

According to a statement McDonald's released ahead of an investors' conference, nearly 75% people in its top five markets of the US, UK, France, Germany and Canada live within three miles of a McDonald's restaurant.

"No other food company in the world has this reach and ability to be this convenient to so many customers through delivery," the statement read.

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

And in another sign of a major shift in its operations, the company went on to announce that mobile order and pay will be launched in 20,000 restaurants in some of its largest markets, including the US, by the end of the year.

There also will be more kiosks in restaurants, so customers don't have to queue at the front counter because their order will be taken directly to their table.

And customers who order through the app will be able to personalise their order and choose curbside delivery or collection at drive-thru windows.

McDonald's said it was all about bringing greater control, convenience and personalisation to its customers to deliver a more stress-free, personalised experience that is enhanced by technology.

Commenting on the strategy, CEO Steve Easterbrook, said: "We have fundamentally changed the trajectory of our business over the past two years. Now, we are fit for purpose, ready to build on our momentum and transition to focus our efforts on profitable, long-term growth.

"To deliver sustained growth, we have to attract more customers, more often. Our greatest opportunities reside at the very heart of our brand – our food, value and the customer experience."

Data sourced from McDonald's; additional content by Warc staff

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