Dive Brief:
- McDonald’s will roll out its Ready on Arrival system, which speeds up mobile order fulfillment using geofencing technology, to its six top markets by the end of 2025, executives said on a Q3 2024 earnings call Tuesday. The roll out follows a successful U.S. pilot.
- The restaurant is continuing to grow its loyalty program, with global sales to loyalty members reaching $8 billion during the quarter, CEO Chris Kempczinski said on the call. The company wants to have 250 million active users by the end of 2027.
- Overall CX efforts in recent quarters have paid off. U.S. customer satisfaction scores are at an "all-time high" and drive-thru service times are down compared to last year, according to Ian Borden, CFO at McDonald’s.
Dive Insight:
Meeting the demand for speedy service, particularly in mobile orders, is a trend across the restaurant industry, and McDonald’s is no exception.
Value menu offerings played an important role in McDonald’s comparable sales growth during the quarter, but executives noted that experience was the other essential ingredient.
“While we will continue to focus on ensuring we have the right price points for our customers, we will not forget about all of the intangibles that create great value, knowing that providing a great experience, particularly now, is fundamental,” Borden said during the earnings call.
The Ready on Arrival program plays a significant role in McDonald's effort to build better experiences. The strategy alerts kitchen staff when a customer with a mobile order is approaching the restaurant, which helps them prepare orders more efficiently.
“We know from the U.S. that ROA helps not only with smoother restaurant execution as crew can better sequence in the kitchen, but also drives higher customer satisfaction scores by reducing wait times,” Kempczinski said during the earnings call.
Other restaurants are emphasizing speed as well. In August, Shake Shack CEO Rob Lynch called out drive-thru wait times as too long, and Starbucks CEO Brian Niccol is calling for faster service during the morning rush as part of his four-part turnaround strategy.
