McDonald’s is making a bet it can automate the task of taking drive-thru orders, reports New Equipment Digest (Sept. 10, 2019). The world’s biggest restaurant company is buying startup Apprente, a developer of voice-recognition technology for use in the restaurant industry, to help speed up lines. The idea is to eventually have a machine, instead of a person, on the other side of the intercom to relay orders to kitchen staff. Chicago-area restaurants are testing the system.
McDonald’s sees Apprente helping it move cars through the drive-thru lane more quickly and take orders more accurately than employees. The company is also investing to add ordering apps and kiosks in its restaurants and digital menu displays. Fast-food companies are looking for an edge amid intense competition.
Apprente says its technology can accurately interpret conversational language — such as a customer ordering a hamburger with no onions and extra sauce. McDonald’s already is testing the technology in its drive-thru lanes, which makes up about 70% of the company’s business. It plans to roll Apprente’s technology out nationwide, and predicts it will have a “positive impact on more than half of our customers.”
McDonald’s also spent $300 million on Dynamic Yield Ltd. this year, a company which helps retailers improve performance by collecting personal data from customers to fine-tune sales pitches and promotions. McDonald’s uses Dynamic Yield’s tools to suggest food and drinks to diners based on factors such as time of day, weather and traffic.
Classroom discussion questions:
- Why is this an important OM tool for McDonald’s?
- Compare this to the 7 other major changes described in the Global Company Profile on McDonald’s that opens Chapter 9.