McDonald's to expand mobile, delivery options

One of America's biggest fast food chains wants to make it easier for you to get your food.

McDonald's will start to roll out "mobile order and pay" in the fourth quarter and have it available at all of its roughly 14,000 US restaurants by year-end, Chris Kempczinski, president of McDonald's United States of America, said at the company's investor meeting in Chicago on Wednesday.

McDonald's revealed in December previous year it would test delivery via UberEATS and mobile app ordering in Florida starting late January.

The fast-food chain will rely heavily on delivery to reignite sales, especially in the USA, according to executives speaking at McDonald's investor day in Chicago on Wednesday. McDonald's has revealed that its delivery business in China has grown 30 per cent since 2016, and because the majority of customers in its biggest markets live within three miles of a store, delivering food orders while they are still hot is definitely doable. Starbucks Corp. already offers mobile order-and-pay, an option the coffee chain has hailed as a success but also blamed for creating congestion at pickup counters.

But on Wednesday, McDonald's admitted that it has lost 500 million potential transactions since 2012 to its fast-food competitors.

The news about McDonald's home delivery comes after an ex-employee of the chain lifted the lid on what really goes on behind the scenes there.




"Delivery is the most significant disruption in the restaurant industry in our lifetime", Brady said.

Customers who order through the app will be able to choose curbside delivery or to retrieve their orders at the drive-thru window, by reading a delivery code to the employee.

McDonald's, which revolutionized the drive-thru in the seventies, announced a new initiative on Wednesday that could kill it.

The company said it is "experimenting with different delivery models, including partnering with third parties".

McDonald's already delivers in countries such as China, South Korea, and Singapore, and they see some countries around Europe as unexploited markets. McDonald's told investors that it will roll out mobile ordering, mobile pay and curbside pickup at its 14,000 US restaurants by the end of 2017. While it already has a massive delivery business in China and other markets overseas, it's not availableeverywhere.

McDonald's also wants to rapidly roll out its Experience of the Future format into most of its restaurants by 2020.

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