McDonald’s has begun the process of upgrading its more than 43,000 restaurants with modern technologies. The process includes internet-connected kitchen equipment, an artificial intelligence-based system, and smart management tools for managers.
The company’s main goal is to create a more efficient and convenient experience for customers and employees. McDonald’s Chief Information Officer Brian Rice stated that employees are currently facing problems such as malfunctioning equipment and incorrect orders.
“Our restaurants operate under very intense pressure. Customers at the cash register, drive-through orders, delivery services – all of these increase the workload. Technological solutions will help ease this burden,” says Rice.
These investments are being made during a crucial period for McDonald’s. In January, restaurant sales in the US slowed down, which is part of the decline observed across the entire fast food industry. The company noted that low-income customers and families are under financial pressure. McDonald’s aims to increase its loyal customer base from 175 million to 250 million by 2027, striving to expand its technological capabilities to achieve this goal.
McDonald’s Chief Information Officer Brian Rice
“At the end of 2023, McDonald’s began collaborating with Google Cloud to achieve this goal. This initiative involves the introduction of edge computing technology in each restaurant, which will allow data processing and analysis at the local level. This approach is a faster and more cost-effective solution to avoid dependence on unstable cloud connections in remote areas,” says Rice.
Rice joined McDonald’s in 2022, prior to which he served as chief information officer at Cardinal Health. He also previously held technology executive positions at major companies such as Kellogg, Mars, and General Motors.
Edge computing technology allows for predicting the operational status of McDonald’s kitchen equipment. For example, the probability of fryers or the famous McFlurry ice cream machines breaking down can be predicted in advance by AI. McDonald’s suppliers have already started installing special sensors on kitchen equipment, which deliver data to the edge computing system in real time. Artificial intelligence analyzes this data and helps to take measures to prevent problems before they arise.
McDonald’s is exploring artificial intelligence-based computer vision technology to verify order accuracy. According to Rice, this system operates through cameras installed inside the store and allows for confirming the accuracy of an order before it is given to the customer.
“If we can address these issues before they arise, future operations will run much more smoothly,” Rice adds.
McDonald’s began testing edge computing technology in some US restaurants in 2024 and plans to expand it throughout the year. The company has not disclosed how many restaurants are currently using this system or when the process will be fully completed.
Additionally, the implementation of edge computing technology will enable the launch of voice-based artificial intelligence in McDonald’s drive-through systems. According to Rays, the company is exploring this possibility in partnership with Google Cloud. McDonald’s has been experimenting with voice-controlled drive-through systems and robotic fryers since 2019. In 2024, it terminated its partnership with International Business Machines (IBM) for automated order-taking.
Furthermore, edge computing technology helps restaurant managers effectively manage operational processes. Rays noted that the company is working on creating a “generative AI virtual manager” to reduce the workload of managers. This system will automate administrative tasks such as work shift scheduling. McDonald’s is not the only company testing such technologies in the fast food industry. For example, Yum Brands is exploring similar possibilities for its Pizza Hut and Taco Bell brands.
According to Jose Gomes, Managing Director of Retail and Consumer Goods at Google Cloud, although McDonald’s is one of the first companies to start using edge computing technology in the fast food sector, it is not alone in this regard. This technology is expected to be widely used in any field with distributed physical locations, including hospitals and factories.
Although McDonald’s is among the frontrunners in technological transformation, the company is expected to face certain challenges. According to Sandip Unni, a retail analyst at the market research and IT consulting firm Gartner, the main issues may be costs and the complexity of applying technologies uniformly across franchise and corporate restaurants. McDonald’s, however, has declined to disclose the volume of its investments in this area.
Nevertheless, Unni notes that McDonald’s has a relatively aggressive approach to investing in digital technologies among fast-food restaurants. In addition, the company has collected a vast amount of customer data, which gives it an advantage in expanding its loyal customer base and improving the customer experience.
Artificial intelligence allows the company to offer personalized and promotional offers using this customer data. For example, AI can provide individualized recommendations by linking customers’ past purchase history with weather data.
“If we know that a customer loves sweets, we can send them a special offer for McFlurry through a mobile app on a hot summer day,” says Rays.
Prepared by Zukhrakhon Mansurova
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