Dive Brief:
- Better customer experiences — powered by personalization and speed of service — are fueling satisfaction and sales growth at McDonald’s, President and CEO Chris Kempczinski said on a Q1 2024 earnings call Tuesday.
- The fast food chain’s focus on personalization is one side of its experience strategy, according to Kempczinski. Personalized recommendations drive more visits, which in turn provide data to better target loyalty offers.
- Faster service elevates personalization. “Successfully delivering personalized experiences depends on transforming our restaurants to deliver what customers want — hot, fresh orders delivered with convenience and accuracy,” Kempczinski said during the call.
Dive Insight:
McDonald’s is focusing on elements it can control, such as convenience and price, to grow sales despite inflation-driven declines in customer visits across the entire fast food industry.
“We don't control the macro context around us,” Ian Borden, McDonald’s CFO, said during the call. Instead, the company is listening to the needs of its consumers and ensuring it delivers on their expectations.
The company’s investment in data crunching technology will help it give customers the service they expect every time, according to Kempczinski. McDonald’s is harnessing AI-driven insights from its loyalty program and restaurants to make ordering easier and improve restaurant operations.
Ready on Arrival, a technology which expedites service by telling workers to prepare mobile orders before the customer arrives, is a crucial part of the experience, according to Borden. The program is live in the U.S. and will reach the restaurant’s top six markets by 2025.
Pricing is another part of McDonald’s recipe for success. The company will also examine its pricing model to attract economically wary customers, according to Borden and Kempczinski.
“We know the experience we provide, whether through our mobile app or in our restaurants, is a significant driver of how often our customers choose to visit McDonald's,” Borden said during the call. “But providing our delicious food at the right price is equally critical, especially in today's environment.”
