Dive Brief:
- McDonald's has partnered with technology consultancy Capgemini and agency Publicis.Sapient to accelerate digital transformation at its restaurant locations, The Drum Reported. Around 100 of the fast food giant's tech staffers will begin working for Capgemini in a multi-year agreement, per the Chicago Business Journal. The affected employees account for less than 20% of McDonald's tech workers.
- McDonald's plans include upgrading its technology, introducing kiosks that allow digital ordering and launching a new mobile app and mobile payment options.
- McDonald's chose its partners for their expertise and flexibility to get resources in place quickly for its 37,000 restaurants while still retaining in-house expertise, per Chicago Business Journal. Capgemini, which is based in Paris, will set up a 'Global Digital Retail Center' in Chicago to support the effort, The Drum said.
Dive Insight:
McDonald's has faced serious business challenges in recent years, largely stemming from an inability to connect with many younger consumers who often value healthier food alternatives. An internal memo circulated at the company last year suggested that just 20% of millennials, a coveted audience segment, had ever tried the brand's signature menu item, the Big Mac. Accelerating digital transformation to include offerings like in-store ordering kiosks and also more mobile payment options and a new app shows that the brand is serious about reshaping its image to accommodate the next generation of fast food eaters.
News of the Capgemini and Publicis.Sapient partnerships also come on the tail of McDonald's growing business with UberEats, which has quickly expanded to over 1,000 restaurant locations. That early success in a largely untested area for McDonald's — meal delivery — might have spurred the brand to step on the gas in ramping up digital transformation.
McDonald's is not the only quick-service restaurant to prioritize improvements to in-store digital tech, along with mobile payments and engagement. In July, Subway announced a total redesign of its restaurants and customer experience, including through enhancements like self-ordering kiosks, mobile payment options, a new mobile app and a Facebook Messenger bot.