Fast food favourite McDonald’s wants to tap into the $100bn restaurant delivery market by expanding its home delivery food service in the US.
At a McDonald’s investor day in Chicago yesterday, Bloomberg reported that the chain wants to use delivery to reignite sales that slowed after it launched all-day breakfast in the US in 2015.
Timeline for delivery
Senior vice president Lucy Brady said:
“Restaurant delivery is a $10bn market and it’s exploded. There’s significant opportunity that we haven’t even tapped into yet.”
McDonald’s home delivery isn’t a new concept. Many of its restaurants in Asia and the Middle East offer the service, contributing $1bn in sales last year.
The company has been reportedly testing the concept with Postmates, UberEats and Foodpanda. At the event on Wednesday, it mentioned restaurant delivery service Grubhub too, which caused the company’s shares to go up by 3.9 percent.
As well as eyeing up delivery, McDonald’s wants to overhaul the company to focus more digital technology, by incorporating mobile ordering and payments into its restaurants.
This is part of the chains plans to achieve long-term system wide sales growth of three to five percent, starting in 2019.
This initiative has been named ‘Experience of the Future’, which will see restaurants upgraded to include touch screens and accommodate orders from apps, similar to the likes of Starbucks.
McDonald’s has been attempting to revolutionise the brand and keep it relevant in an increasingly overcrowded fast-food market.
Burgers have become the food of choice for many, particularly in the UK, which has become home to other major US brands such as Five Guys and Shake Shack in recent years.
According to a YouGov poll in 2014, Burger King and Five Guys tied for first place as the US’s favourite fast food burger, but McDonald’s did win with 34 percent of the vote as having the best fries.
3 Things That Will Change the World Today
This was the same year the company’s annual net income dropped 15 percent to $4.7bn, one of the chain’s worst-ever years.
If we want to still have the Golden Arches as a food choice, let’s hope delivery can reignite the brand.