McDonald’s and IoT

McDonald’s and IoT

McDonald’s doesn’t always get the best reputation, but when it comes to innovation in the fast food industry, they are crushing it. No, drones are not delivering your Big Macs (although they might in the not so distant future), but McDonald’s has been consistently increasing efficiency with IoT.

They were one of the first to accept payment with Google Wallet, they recently accepted payment with hugs and are also looking to cut costs with cloud and remote management as well as providing touch-screen kiosks or tablet registers that take orders (they not only save employee time, but are more accurate).

In the Netherlands, Sweden and Japan (12% of their locations), a service called VMob has been working on McDonald’s app to be more personalized by providing more contextual information. The information is sent based on their location, the time of day, the weather, plus habits of purchasing and response to promotions. A sunny afternoon might lead to an ice-cream offer. If it seems like someone is moving quickly they might get directions to a drive-through. In the Netherlands, customers using the app are returning to stores twice as often and spending about 50% more. Redemptions have increased 700%. These are pretty incredible numbers.

McDonald’s also allows their franchisers to test out new technology. At 15 McDonald’s Café restaurants in Istanbul, beacons sent offers for flavored coffee and tea drinks. 30 percent used the offer more than once. Beacons were also tested in Columbus, Georgia. In a four-week trial, McChicken sandwiches were sold 8%more and McNuggets sales were boosted by 7.5%. Customers were offered coupons, surveys, Q&As, and even employment info.

They not only think outside the box on the corporate front, but allow the franchises to test out technology independently. It is a company worth watching if you are interested in IoT.

You can learn more on the Microsoft Blog.