mcdonalds technology case study

Digital Innovation and Transformation

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Committing to the Core: How McDonald’s Innovated to Survive (and Thrive) During the COVID-19 Pandemic

During the COVID-19 pandemic, McDonald's emerged as the winner in fast casual through digital innovations along their core competencies for their core consumers.

Though the impact of COVID-19 has been felt across the business community, the fast-casual restaurant industry has faced especially high adversity in the face of rapidly changing consumer behavior caused by the pandemic. According to Crunchtime , US fast-casual same store sales dropped to 56% of pre-pandemic levels by April 2020, with social distancing and restrictions on indoor capacity especially hurting fast-casual restaurants whose business models relied more heavily on larger dine-in crowds than its quick service restaurant (QSR) counterparts. 

And though many fast-casual chains quickly adapted to stay afloat during their industry’s most trying time — one in particular not only adapted to the short-term challenges presented by the pandemic, but positioned itself to emerge as the true winner in the post-pandemic future: McDonald’s . Although the pandemic hit McDonald’s hard and prevented customers from dining in most of their restaurants throughout the year, McDonald’s rose to the occasion and managed to deliver its strongest financial performance of the year in Q420 — announcing that it had recovered 99% of Q419 global same store sales, a tremendous feat. 

So how was McDonald’s able to make such a rapid recovery? In the recent Q420 earnings call , CEO Chris Kempczinski attributed McDonald’s success to its new growth strategy encompassing all aspects of McDonald’s business, “ Accelerating the Arches .” Kempczinski explained that at its core, the “Accelerating the Arches” strategy is about “leveraging our competitive advantages,” providing increased value to its current customers and ensuring their continued loyalty. Tactically, this meant significant investment and innovation in what McDonald’s believed to be their key comparative advantages with their core customers — what McDonald’s calls the “three D’s”: digital, drive-thru, and delivery . 

Going into the pandemic, McDonald’s actually found itself well positioned to build on its prior digital innovations to create a user experience well-suited for the constraints posed by the pandemic. McDonald’s recent technology innovations — including the development of the McDonald’s mobile application, acquisition of personalization technology provider Dynamic Yield , Mobile Order and Pay, and self-order kiosks — together have transformed customer experiences in and around their restaurants, giving customers more ways to securely pay and personalize their orders to meet their needs. Digital sales exceeded $10B, or nearly 20% of systemwide sales, in 2020 across the top six markets. 

Such digital innovations paid off tremendously for McDonald’s drive-thru channel. In the Q320 earnings call , Kempczinski highlighted the strategic opportunity of drive-thru for McDonald’s, noting that “a world with less dine-in and more takeout plays to our significant long-time strength in drive-thru…We have the most drive-thrus. We know how to do it best.” Accordingly, as indoor dining took a plunge during the pandemic, McDonald’s made significant drive-thru technology investments (such as dynamic menu boards — leveraging personalization technology from Dynamic Yield) and operational improvements (such as a staffing overall and dramatically cutting menu items to their “core menu”) to ultimately deliver the value their customers cared most about: speed. These innovations enabled McDonald’s to cut 30 seconds from its drive-thru times on average and move “300 million additional cars” through McDonald’s drive-thrus during the pandemic. Such focus on innovations targeting their core customer enabled McDonald’s to recover sales more quickly than anticipated and become one of the few fast casual restaurants to sustain demand for drive-thru .

Pathways to a Just Digital Future

In addition to drive-thru, enabling delivery perhaps not surprisingly became a significant focus for McDonald’s to provide customers with additional safe channels to order food. Ozan mentioned that delivery has “become a meaningful part of our business” very quickly, scaling up its delivery platform and rapidly expanded the number of restaurants to offer delivery to 28,000 of 41,000 global restaurants. The result — delivery sales have more than tripled. 

By focusing innovation on the company’s comparative advantage, the three D’s, McDonald’s was able to create a faster, easier, and better customer experience — even in the face of tremendous change. By improving the customer experience for their core customers, McDonald’s in turn ensured they maintained loyal customers in the face of adversity and successfully recovered sales in a challenging year for the industry. 

McDonald’s will continue to build on the “Accelerating the Arches” strategy and is well positioned to continue seeing gains in the coming years. Recently, McDonald’s unveiled a series of changes that will change how the company’s restaurants interact with customers for years, designed to integrate digital ordering more fully into the McDonald’s ecosystem, increase loyalty through a new rewards program, expand its advantage on drive-thru ordering and double down on delivery. Lucy Brady, McDonald’s chief digital customer engagement, said that “technology has changed our expectations as consumers,” and Kempczinski further said that “the needs of our customers coming through the pandemic are going to be different than they were coming in…the restaurant experience we offer must change to meet those evolving needs.” McDonald’s continues to demonstrate a unique focus to meet those evolving needs of their core consumers, and expect McDonald’s to emerge a winner in the evolving fast casual industry. 

CrunchTime!. 2021.  Restaurant Chain Industry Sales: Tracking US Recovery . [online] Available at: <https://crunchtime.com/blog/restaurant-industry-sales-tracking-us-recovery> [Accessed 10 February 2021].

Hospitality Technology. 2021.  McDonald’s Sees Sustained Demand for Drive-Thru . [online] Available at: <https://hospitalitytech.com/mcdonalds-sees-sustained-demand-drive-thru> [Accessed 10 February 2021].

Hospitality Technology. 2021.  McDonald’s to Acquire Dynamic Yield . [online] Available at: <https://hospitalitytech.com/mcdonalds-acquire-dynamic-yield> [Accessed 10 February 2021].

McDonald’s, 2021. [online] Corporate.mcdonalds.com. Available at: <https://corporate.mcdonalds.com/content/dam/gwscorp/assets/news-articles/2020/November2020/MCDN-ATA-InfoSheet.pdf> [Accessed 10 February 2021].

Meatpoultry.com. 2021.  McDonald’s doubles down on digital, delivery and drive-thru . [online] Available at: <https://www.meatpoultry.com/articles/24456-mcdonalds-doubles-down-on-digital-delivery-and-drive-thru> [Accessed 10 February 2021].

Restaurant Business. 2021.  Inside McDonald’s digitally-focused future . [online] Available at: <https://www.restaurantbusinessonline.com/financing/inside-mcdonalds-digitally-focused-future> [Accessed 10 February 2021].

Transcribers, M., 2021.  McDonald’s Corp (MCD) Q3 2020 Earnings Call Transcript | The Motley Fool . [online] The Motley Fool. Available at: <https://www.fool.com/earnings/call-transcripts/2020/11/09/mcdonalds-corp-mcd-q3-2020-earnings-call-transcrip/> [Accessed 10 February 2021].

Transcribers, M., 2021.  McDonald’s Corp (MCD) Q4 2020 Earnings Call Transcript | The Motley Fool . [online] The Motley Fool. Available at: <https://www.fool.com/earnings/call-transcripts/2021/01/28/mcdonalds-corp-mcd-q4-2020-earnings-call-transcrip/> [Accessed 10 February 2021].

Student comments on Committing to the Core: How McDonald’s Innovated to Survive (and Thrive) During the COVID-19 Pandemic

Would it be fair to say that the automation McDonald’s was bringing in to deal with demands for a better minimum wage helped it deal with the pandemic better? Also, the “Accelerating the Arches” strategy though profitable for McDonald’s will cause more automation, leading to loss of jobs in the future. This could lead to McDonald’s have a public perception issue in the future which might in turn end up negatively impacting their profits.

Hi Vikram — yes this is a great point. I should note there is tremendous risk with the approach McDonald’s is taking. You’re right that the future they’re proposing would fully automate the drive-thru experience (e.g. AI for taking orders and making the food, building conveyor belts to deliver the food to cars). Further, another risk they are facing has to do with franchisees. Similar to our Domino’s case, McDonald’s will mandate the technology changes and charge additional fees. Franchisees were apparently caught off guard with the Accelerating the Arches announcement. It’ll be interesting to see how they adjust given these challenges.

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McDonald’s: Tech Strategy Unlocks Speed, Growth & Efficiency

For more than 65 years, McDonald’s restaurants have been a familiar sight around the world. What began as a small drive-in restaurant in San Bernardino, California has grown into an American icon that serves 63 million customers every day around the globe, with over 38,000 restaurants worldwide.

What’s more, the company is far from standing still. McDonald’s announced in December 2023 that it was targeting 50,000 restaurants by 2027, ushering in the fastest period of growth in the brand’s history. Meanwhile, the company aims to extend its loyalty programme – already one of the largest in the world – from 150 million to 250 million 90-day active users by 2027.

McDonald's cloud journey laid the foundation for digital transformation

McDonald’s cloud journey, which commenced in 2014 by partnering with major cloud providers, has laid the foundation for its digital transformation.

According to an article by Betty Gomez , Director of McDonald’s Cloud Business Office, when it came to migrating McDonald’s’ core applications, one of the initial challenges was ensuring data security, compliance and performance . 

By 2016 and into 2017, McDonald’s continued migrating more of its core and non-core applications out of physical data centres to public cloud providers, achieving scalability and agility – forming the backbone to support future digital innovations.

In 2017, McDonald’s took a significant step in its digital and cloud journey by focusing on customer-facing mobile and digital offerings, with the introduction of the McDonald’s Global Mobile App. This also enabled the integration of third-party delivery services, meaning customers could enjoy their favorite meals delivered to their doorstep, thanks to cloud-powered logistics and services.

Using technology to unlock greater speed and efficiency

Today, McDonald’s aims to leverage scale and unlock greater speed and efficiency for customers, restaurant teams and employees through its technology strategy.

The company has made several acquisitions and formed partnerships with technology companies to advance its capabilities. In 2019 McDonald’s acquired Dynamic Yield, a leader in personalisation and decision logic technology, to provide a more personalised ordering experience for its customers: later selling it to Mastercard.   

In December, McDonald’s announced a strategic partnership with Google Cloud to connect the latest cloud technology and apply generative AI (Gen AI) solutions across its restaurants worldwide. This, the companies said, aims to help accelerate automation innovation from equipment manufacturers and allow restaurant general managers to quickly spot and enact solutions to reduce business disruptions. Overall, this will also reduce complexity for staff and lead to customer benefits such as hotter, fresher food.

“We’re focused on making AI more helpful for everyone, with the potential to unlock many new opportunities for innovation,” said Sundar Pichai , CEO of Google and Alphabet. “The restaurant industry is already benefiting from these advances, and we’re excited to see how McDonald’s will use our generative AI, cloud, and edge computing tools to improve their iconic dining experience for their employees and their customers all over the world.”

McDonald’s also recently announced an expansion of its strategic partnership with Accenture to help execute its strategy to leverage the latest edge technology and apply Gen AI solutions across its restaurants worldwide to improve operations as well as customer and crew experience. Through this work, McDonald’s also will enhance the digital capabilities of its employees.

This phase of innovation is also designed to build an even stronger technology team at McDonald's. Accenture will help train and support McDonald’s global workforce by using Accenture’s learning and development programs, online training courses and boot camps for emerging talent to ensure the workforce has the AI, data and edge computing skills needed in the digital era.

“To unlock the opportunity in our ongoing digital investments, we chose Accenture, our long-time partner who has helped us build our digital foundation, to work with us on this next phase of innovation,” commented Brian Rice , Executive VP and Global Chief Information Officer, McDonald's. “Accenture’s deep understanding of our business, our industry, and of course technology, will allow us to leverage the full potential of the cloud and Gen AI solutions by implementing advanced practices to quickly leverage those technologies as well as to nurture and empower the talent within our organization. Lifelong learning and digital upskilling are at the heart of our culture and long-term growth plans – and embedding this across our workforce will enable greater business agility and performance.”

“We are incredibly proud to continue to partner with McDonald’s as they reinvent the customer experience, stay ahead of their customers’ changing needs and reimagine what a restaurant can be,” added Julie Sweet , Chair and CEO, Accenture. “This new work will be a leading example across industries of innovating with tech data and AI at the core, across the cloud continuum, all the way to the edge. And doing so in a way that keeps their people in the forefront, building the skills they need to meet and delight their customers in new ways every day.”

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McDonald's digital drive: How technology serves up future growth McDonald's embraces cutting-edge digital innovations and environmentally friendly policies to maintain its fast-food dominance.

By Jeffrey Neal Johnson Feb 5, 2024

This story originally appeared on MarketBeat

McDonald's Corp. (NYSE: MCD)  is redefining its role in the  fast-food sector , demonstrating its capacity for innovation and resilience beyond its traditional offerings. 

Its  recent financial performance  exceeded market expectations, and the introduction of CosMc's marks a significant pivot towards reimagining fast-food service. 

Alongside these developments, substantial modifications to its longstanding menu indicate a strategic evolution to enhance customer experience. Amid challenges such as shifting consumer preferences and economic uncertainties, McDonald's maintains leadership in the global fast-food industry.

Savoring the financial flavors

McDonald's financial data  has consistently garnered attention from the investment community and market analysts, marking it a critical barometer for gauging the company's market position and operational efficiency. In the fiscal quarter ending February 2024, McDonald's demonstrated a robust financial performance, with its  earnings per share   (EPS) reaching $2.95. 

This figure exceeded the  McDonald’s analyst  community's expectations and illustrated the company's capability to outperform amidst challenging economic conditions. Despite this achievement in  profitability , McDonald's reported revenue amounted to $6.41 billion. While this revenue mark represents an uptick on a year-over-year basis, it fell marginally short of the anticipated projections.  

This contradiction of exceeding EPS forecasts while narrowly missing revenue expectations paints a complex picture of McDonald's financial health. It highlights the company's strategic financial management and operational resilience, especially in a period marked by significant macroeconomic uncertainties and fierce competition within the  consumer discretionary sector . 

Traditionally, when times get tough, consumers cut down on  consumer discretionary spending . Due to this contradiction, some analysts predict  McDonald’s stock could experience a 5% to 10% pullback  in the near term, creating an attractive buying opportunity. 

This opportunity to purchase  McDonald’s stock  at a discount is especially appealing considering the anticipated growth acceleration expected by the year's end. McDonald's ability to navigate these turbulent waters and still post commendable financial results indicates its strategic foresight, operational agility and the inherent strength of its global brand.

The CosMc's odyssey

In a strategic effort to  diversify  its product offerings and penetrate new market segments, McDonald's introduced CosMc's, a distinctive spin-off brand characterized by its space-themed, compact dining format, predominantly emphasizing breakfast options and various beverages. 

This endeavor manifests McDonald's dedication to innovation, underscoring its forward-thinking approach in broadening its appeal to a broader consumer demographic. The introduction of CosMc's is emblematic of McDonald's agility in adapting to market demands, showcasing its commitment to growth by exploring novel dining concepts and menu diversification.

Revitalizing the menu

McDonald's has initiated a comprehensive overhaul of its menu, signaling a strategic shift toward enhancing the quality and attractiveness of its culinary offerings. This transformation encompasses the introduction of softer buns and caramelized patties alongside a notable modification to the iconic Big Mac, which now features an increased amount of its signature special sauce. 

These refinements indicate McDonald's unwavering commitment to improving the customer dining experience, aligning its offerings with the dynamic preferences of today's consumers. By implementing these changes, McDonald's not only aims to meet the diverse tastes of its global customer base but also seeks to strengthen its position within the competitive landscape of the fast-food industry.

Digital and technological supremacy

McDonald's has embraced  digital technology  to boost operational efficiency and deepen customer interactions. Its adoption of mobile ordering, delivery platforms, and digital payments underscores the company's commitment to aligning with the digital preferences of today's consumers. This digital shift is crucial for McDonald's to sustain its leadership in the competitive fast-food landscape.

The company's mobile app enhances customer convenience through features like loyalty rewards and is a critical tool for gathering consumer insights. Partnerships with delivery services add to McDonald's commitment to accessibility, meeting the growing demand for at-home dining options.

Moreover, McDonald's leverages data analytics to tailor its offerings, ensuring menu items and promotions resonate with customer preferences.  Automation and AI  in operations, such as kiosk ordering and kitchen management systems, streamline service delivery, enhancing efficiency and profitability.

Sustainability and social responsibility

McDonald's commitment to sustainability  and social responsibility is evident in its efforts to reduce environmental impact and foster community engagement. The company's initiatives, from sustainable packaging to renewable energy projects, underscore its dedication to ethical business practices and environmental stewardship. 

Such endeavors enhance McDonald's corporate image and align with the growing consumer demand for responsible and sustainable business operations.

Navigating the gauntlet

In the face of market saturation, stringent regulations and evolving consumer demands, McDonald's has showcased strategic finesse to uphold its market dominance. The company's multifaceted strategy encompasses menu innovation, digital transformation, and a commitment to sustainability. The center of its strategy is aimed at navigating the complex landscape of the fast-food industry while eyeing growth in untapped markets.

Market saturation in established regions has prompted McDonald's to rejuvenate its menu and refurbish outlets, focusing on customer experience to retain and attract patrons. 

Regulatory challenges related to environmental and health standards have spurred McDonald's towards sustainable practices, such as reducing plastic usage, embracing ethical sourcing and responding to consumer expectations for responsible business conduct.

The shift in consumer behavior towards digital convenience has accelerated McDonald's digital initiatives. Investment in mobile ordering systems, delivery partnerships, and digital payments has streamlined operations and enriched the customer interaction model, providing valuable insights for targeted marketing and menu refinement.

Recognizing the potential in emerging markets, McDonald's has tailored its offerings and marketing to local tastes, driving brand growth and expanding its global footprint. Integrating  AI and automation  in operations underscores McDonald's pursuit of efficiency and innovation, preparing the ground for new service models and business opportunities.

McDonald's strategic outlook

Looking forward, McDonald's is poised to continue its growth trajectory, underpinned by its strategic initiatives and adaptability. 

The expansion of CosMc's, coupled with ongoing menu innovations and digital advancements, positions McDonald's to capitalize on emerging trends and consumer preferences. The company's financial robustness and strategic investments underscore its readiness to navigate the future landscape of the fast-food industry.

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Jun 7, 2023

McDonald’s: Through the Golden Arches to Global Dominance

• Customer Experience (CX)
• Digital Management and Leadership

Written by Conor Ward

In marketing theory and analysis, we often stress that a brand is much more than just a logo. There are many factors involved when it comes to developing one that’s instantly recognizable (product offering, mission, tone, messaging and customer experience ). 

But, McDonald’s is a brand that’s inextricably linked to one particular brand element: its Golden arches logo. It’s a powerful and meaningful image, built up over decades that evokes familiarity and a sense of fun for many customers.

Let’s look at how McDonalds used marketing and innovation to become a leading brand in a competitive market. We’ll also look at some of the challenges faced and consider  how the company continues to modernize and adapt to embrace the changing digital landscape including artificial intelligence .

The Origins of Empire

Brothers Richard and Maurice McDonald  opened the first McDonald’s restaurant in San Bernardino, California in 1940. The restaurant’s early years’ success led the brothers to franchise their concept to further locations, and the Golden Arches logo was first introduced in 1953 in Phoenix, Arizona.

Ray Kroc, a Chicago native and distributor of a milkshake mixing machine, visited the McDonald brothers in 1954, which led to him becoming their franchise agent. Kroc  ended up buying the rights to expand McDonald’s throughout the US.

How McDonald’s Built a Global Brand

Kroc’s ambition was to bring the company to a larger scale which he did largely through clever and creative marketing. 

Kroc - subject of the 2017 film The Founder - established a partnership with Coca-Cola in 1955 to be the McDonald’s beverage supplier, a key alliance which has endured to this day and helped drive both companies to global expansion.

One standout piece of marketing to drive this growth was the “Look for the Golden Arches!” campaign, introduced in 1960. With the logo gaining increased prominence and traction, this message was genius in its simplicity.

Ronald McDonald was introduced in 1965, and the character began appearing in advertising to target their audience of children, adding that all-important element of fun: albeit one that hasn’t continued so well into this century, despite going through a 2012 makeover.

The company ramped up its advertising campaigns during these years, involving major spending on media – TV, radio and newspapers – with billboards and outdoor signage also playing a role in building brand awareness. The emergence of McDonald’s as a major brand coincided with the golden era in TV advertising, and the company leveraged the medium to its advantage.

Another arena for brand exposure is McDonald’s ongoing sponsorship of sporting events, such as the FIFA World Cup, although their 41-year partnership with the Olympic Games ended in 2017 due to heightened competition, the need to fund menu changes and tech improvements along with bad press for selling ‘junk food’.

McDonald’s Braves Stormy Waters

The company has often been the focus of controversy over the years. As its power and prominence have grown, its business practices, environmental record, working conditions, and health issues have come under the microscope.

In 1990, activists from a small group known as London Greenpeace distributed leaflets entitled ‘What’s wrong with McDonald’s?’, criticizing its environmental, health, and labor record. The company sued them for libel and the case turned out to be the longest running legal action of all time in the UK, referred to as the ‘McLibel’ case .

Morgan Spurlock’s 2004 documentary ‘Super Size Me’ claimed that McDonald’s food was contributing to the increase of obesity in society, and the company was failing to provide nutritional information to its customers. Just weeks after the film premiered, McDonald’s announced that it was eliminating the super-size option from its menu, and creating the adult Happy Meal. Aside from nutritional and health issues, McDonald’s has been a key target of the “Fight for $15” movement which started in the U.S in 2012 as a ground-level push from fast-food workers who started to walk off the job in an effort to raise the minimum wage. Their efforts have had some effect, with 22 million workers seeing raises, and the issue is expanding  into other sectors, like the “gig economy” and ride-share workers.

Modernization and Improving Image

Coming into the 21st Century, the company worked on addressing its deficiencies, improving its image and keeping up to speed with technologies. McDonald’s published its first ever Social Responsibility Report in 2002.

The tagline “I’m lovin’ it”, launched in 2003, has been a success, enduring in marketing campaigns ever since. Menu items continue to change according to health and environmental trends. The brand’s charity work is well known, like the ‘McHappy Day’ annual event and the Ronald McDonald House Charities. The corporate website highlights many areas of the company’s corporate and social responsibility , like climate action, beef sustainability, packaging, diversity, recycling and more.

Most recently—under the leadership of current CEO Chris Kempczinski—the brand rolled out its pivotal “Plan For Change”: an engaging and informative piece of content that outlines key objectives surrounding its revamped net zero emissions, sustainable food sourcing, efficiency, and inclusion and diversity initiatives.

Digital Transformation and Investment

“How do you transition from mass marketing to mass personalization? To do that, you’ve really got to unlock the data within that ecosystem in a way that’s useful to a customer.” McDonald’s CEO Steve Easterbrook

McDonald’s is in the midst of a digital transformation , adapting to new trends and leveraging technology to its advantage.

Pioneering AI decision technology

In 2019, McDonald’s purchased big data start-up Dynamic Yield Ltd, becoming one of the first global restaurant brands to integrate decision technology into its restaurants. 

By leveraging its AI technology, McDonald’s enabled personalization in its drive thru menu and in-store kiosk displays by showing relevant items based on factors such as the weather, time of day or regional preferences. While Dynamic Yield was sold to Mastercard in 2022, McDonald’s will continue to scale and integrate the technology to further enhance customer experience. 

However, some customers were not fans of this new software, Ren Adams (@resinsbiren) made a drive thru order only to have the passenger’s order who pulled up beside her also included! Other users have reported mishaps with the AI technology adding multiple orders or misinterpreting requests. 

Customer Loyalty

Its ‘My Rewards’ app is so successful that in 2021 alone it earned 100% more downloads than its main loyalty competitor, Starbucks.

By developing a cohesive eco-system based on automated technologies, the brand plans to drive extra loyalty from its existing customers while creating a far more bespoke experience by tracking key insights from digital menus, food collection points, and mobile app interaction.

Speaking on the initiatives, McDonald’s President and CEO Chris Kempczinski, explained:

“Digital changes everything. So today, with 90% of the customers coming into my restaurant, I don’t know who they are. I don’t know their prior purchase. I don’t know what their buying pattern is. As I get better and better visibility into that customer, I can actually track and identify their preferences over time.”

The idea here is not only to drive an immense level of personalization , but to also improve operational efficiency in a way that improves output as well as speed of service.

Driving centralization

McDonald’s has centralized its digital strategy for its social media accounts, simplifying their entire social operation, and allowing them to respond to customers in a personalized manner. 

The launch of McDonald’s global brand hubs , a series of offices around the world, employs a ‘follow the sun’ model of engagement to track and interact with customers in real-time, on a constant basis. With thousands of brand mentions a day to deal with, this forms a key part of the digital strategy.

Inspiring communications and campaigns

Recent advertising campaigns have focused on advances in customer experience and digital innovations, highlighting how the brand is making life easier for customers. 

The brand’s most recent forward-thinking campaigns include its artistic ‘McDelivery Pins’ print billboards, its star-studded influencer-led ‘Wanna Go To McDonald’s?’ initiative, and its quirky ‘Raise Your Arches’ campaign.

Spearheaded by British filmmaker, Edgar Wright, this stand-out video ad likens raised eyebrows to the famous Golden Arches.

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Amplified by the hashtag #raiseyoureyebrows, the campaign has earned droves of engagement from various channels.

By partnering up with trending celebrities for its Famous Orders collaborations - including its Travis Scott Meal and J Balvin Meal - McDonald’s has tapped deep into the consciousness of Gen Zers while boosting in-app loyalty exponentially in recent years. In fact, the app installs skyrocketed by 23% during the initial week of its big BTS Meal promotion. No small feat in such a saturated industry.

However, McDonald’s has reprioritized its advertising budget in a bid to get more value and efficiency from its spending. A reduction in overall ad spend (a drop from $98.7 million in 2014 to $63.8 million in 2022) as well as more focused campaigns has proved to be a winning approach.

Tapping into community

The lion’s share of McDonalds’ traffic comes from organic search, direct engagement, and paid advertising—but what’s particularly interesting is the fact that community platform Reddit is one of the brand’s most engaged social channels.

It appears that the colossal impact of its various marketing initiatives, irresistible consumer deals, and commitment to making change has resulted in an ever-growing online community where fans share thoughts, opinions, and insider McD’s hacks. 

This Subreddit provides the brand with access to no end of consumer insight for future marketing initiatives while offering an opportunity to connect with its audience on a personal level.

This video ad showcases McDonald’s ability to tap into memorable everyday moments to position the brand as a fast food purveyor for the people. With a wealth of content, from the funny and inspirational to the enlightening and educational, McDonald’s also earns healthy levels of engagement from its YouTube channel .

McDonald’s: Analysis and Final Thoughts

The digital revolution represents a major challenge for McDonald’s, a brave new world where it needs to adapt to remain strong and profitable. The company is showing that it’s up for that challenge, however, making some smart moves in order to stay ahead of the chasing pack. 

“Long-term vision and commitment to staying the course goes a long way. Too many digital transformation projects are launched with the flawed expectation of jam tomorrow. McDonald’s is chasing the digital secret sauce over a far more pragmatic time frame,” according to digital commentator Stuart Lauchlan.

Millions of people continue to engage with, and buy from, the company daily. It’s an incredible success story, and it will be interesting to see how this powerful brand will continue to evolve.

Published 2019, updated 2023

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Mcdonald’s digital transformation special sauce is curiosity.

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Digital transformation is routinely cited as a top board priority. Yet, companies struggle mightily when functional experts are cast as strategic difference makers.

Competitive labor markets and ongoing pandemic upheaval only compound that widespread problem. Deloitte’s 2021 CEO survey found that 71% of leaders reported that their organization was undergoing or preparing for “a workforce/talent transformation” and 34% expected a “cultural transformation.”

McDonald’s is well ahead of those trends. In late 2020, McDonald’s launched its “Accelerating the Arches” growth strategy which builds on the company’s historic strengths, while also addressing opportunities to meet rapidly evolving consumer preferences. Importantly, the cultivation of a curiosity culture underpins that growth strategy — bettering the odds of digital transformation success.

Digital transactions through apps (including delivery) or kiosks now account for a significant and growing percentage of McDonald’s major market revenue. In addition to driving sales, digital programs enable McDonald’s to elevate customer engagement, measure marketing effectiveness and forecast future performance.

“Accelerating the Arches took shape in response to changing customer needs early in the pandemic. Rooted in the inherent strengths of the McDonald's system and brand, it's proving to be the right strategy with the right focus at the right time,” McDonald’s CEO Chris Kempczinski explained on a recent earnings call.

“Our three growth pillars known as our ‘MCDs’ – marketing, core menu and the 3Ds (digital, delivery and drive-thru) guide our business. This includes amplifying contactless channels like delivery and drive-thru and creating digital experiences that are seamless, personalized and easy to use.”

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Specifically, Kempczinski credited strong cross-functional collaboration for the digital loyalty programs expedited success, noting that several company teams worked together to standardize infrastructure and align the system which paved the way for MyMcDonald's Rewards — their first global digital offering.

Those efforts are swiftly delivering. McDonald’s new loyalty program has over 22 million enrollments, with over 15 million active members. “It’s a good example of how our core menu and personalized marketing come together through digital channels to build a stronger relationship with customers,” Kempsczinski said.

Curious and creative

Led by Global CIO Daniel Henry, McDonald’s tech team plays a key role in daily operations and long-term success. While unwavering strategic investments benefit IT greatly, it’s culture that Henry views as the group’s real differentiator.

“It's been a cultural journey, just as much as a technology journey,” Henry explained. “Culture is more than best practices. We have to be curious — which means we're doing research and challenging ourselves to find ways to drive the business forward.”

Henry fosters that workplace dynamic by motivating his team to understand McDonald’s customers and study tech usage in other industries. “It starts with great listening. We listen to our customers, business partners and crew members,” Henry highlighted. “We appreciate that our customers are using technology every day at work, home and in every aspect of their life. If we complement what works well for them, our business will be rewarded.”

McDonald's Global CIO Daniel Henry

“We work very closely with our customer experience team which researches how customers are interacting with McDonald's, our competitors and other consumer industries,” he continued. “We feed that curiosity with hackathons and creativity. We bring in startup companies to pitch ideas and help us see what we may not be thinking about. We dedicate hours at a time to unconstrained brainstorming and idea-sharing.” In addition to innovation, these unfiltered sessions build trust.

The result is a creative, business-savvy and highly respected IT workforce. “Individuals in the technology organization know the business and technology very well. When we combine those two, we get pretty innovative ideas.”

For instance, McDonald’s has invested in digital menu boards to improve drive-thrus by updating menu selection, displaying relevant product recommendations and empowering customers to confirm orders and personalize their experiences. These modernizations result in better run restaurants and higher customer satisfaction.

Outcomes focus

Henry also attributes the tech team’s success to cross-functional partnerships. “Our CFO Kevin Ozan and I work closely. Productive collaboration happens when conversations center on value, not cost. It's really been important to me that the technology has a seat at the table and that we are part of strategic conversations, as opposed to simply being asked for solutions. At McDonald’s we overcome that common challenge by focusing on the business outcomes,” Henry emphasized.

“Together, we find where investment is needed, not just in technology, but in the business,” he added. “We spend a large amount of time talking with our business partners about our objectives and key results. They challenge us by explaining how and why we are trying to grow digital penetration, acquire more customers, boost customer loyalty and increase transaction size. We have a lot to measure and manage well at the tactical level every single day, but we never lose sight that long term success is about outcomes not outputs.”

As McDonald’s exceeds $100 billion in annual systemwide sales, that sound technology investment approach is vital to fulfilling the “Accelerating the Arches” growth strategy and bolstering revenue, profitability and competitive strength.

Futureproofing

Henry often reminds his team that “it’s exciting to work on something that over 65 million people use every day,” and he sees an even brighter future. “We want to be viewed as a great destination for top technology talent. Smart people love working with other very smart people. Our clear strategy, genuine partnerships and curious culture make McDonald's a force to be reckoned with for sure.”

That’s a foundation for digital transformation success in any industry. Who’s curious?

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Brian Barrett

The Future of McDonald's Is in the Drive-Thru Lane

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The Covid-19 pandemic has transformed virtually every aspect of life around the globe. But in the case of fast food giant McDonald’s , its impact has been less of a catalyst than an accelerant for a process that was already firmly in place: a fundamental rethinking of how fast food works, starting with the drive-thru.

Today at the company’s first investor update in three years, McDonald’s CEO Chris Kempczinski detailed a new long-term growth strategy that hinges in large part on machine learning and mobile software. That might sound strange for a company known more for its burgers than its bitrates. But given its recent investments—including its $300 million acquisition of “decision engine” Dynamic Yield last year—the Golden Arches can lay a convincing claim that it’s as much a tech company as anything else. And given its quick-service ubiquity, where it goes the whole industry will likely follow.

The dramatic changes wrought by the Covid-19 pandemic have made that transformation all the more critical. By mid-April, 97 percent of restaurants in the United States weren’t permitted to host in-person dining, according to market research company NPD Group. That makes the drive-thru—where 70 percent of McDonald’s sales have taken place during the Covid-19 pandemic globally in top markets—existentially important.

“It’s a must-do, now,” says Lucy Brady, who since January has led a new McDonald’s digital engagement effort. “It’s no longer optional.”

McDonald’s says it has shaved 30 seconds off of the average drive-thru time since 2018; its future plans hinge on reducing those times even further. The math is simple: Faster ordering means more customers, which equals more transactions.

Some franchise locations have already enacted one significant change: a voice-assistant taking your order rather than a human, powered not by a name brand like Alexa but by a service-focused startup called Apprente, which McDonald’s acquired last fall . But the concepts McDonald’s is currently exploring involve more drastic changes to its stores’ footprints as well.

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Some of those changes, like dedicated parking spaces for pick-up orders, have been successfully implemented on a smaller scale by other brands, and maybe even your local farm-to-table. Others are more ambitious, like a drive-thru lane exclusively for pick-up orders that delivers your food to you on a conveyor belt system; think of it like the deposits-only window at the bank, except goods flow in the opposite direction. And the company is even considering a concept store with limited or no in-room dining at all, just a kitchen surrounded by drive-thru lanes and pick-up parking.

Remodeled restaurants don’t work in isolation. The physical makeover will be complemented by the company’s existing app as well as a new loyalty program called MyMcDonald’s, which will launch across the quick-service giant’s six largest markets by the end of next year. Think of it like the Starbucks Rewards program: Members can place orders ahead of time, receive tailored offers, and earn points for food and drink purchases that they can redeem for, well, more food and drink.

McDonald’s is far from the first or only fast food joint to stress the importance of the internet; Domino’s in particular has been flooding the zone for ordering options since at least 2016, and chains like Taco Bell and Dunkin already have active loyalty programs in place. In fact, McDonald’s itself already offered McCafe Rewards to customers who purchase its coffee drinks. But MyMcDonald’s not only encompasses the whole menu, it extends to digital menu boards and kiosks as well, using geo-fencing technology to ascertain when a customer’s car is within shouting distance of the restaurant. Your order will eventually timed specifically to your arrival, be it at a dedicated parking spot or an express drive-thru lane.

The chain will squeeze expediency from other corners as well. Dynamic Yield technology—which can adjust a digital drive-thru or kiosk menu based on factors like time of day, weather, drive-thru times, regional menu item popularity, and more—is already active in 12,000 drive-thru restaurants across the US and Canada. Soon, its underlying algorithmic smarts will shape recommendations at a far more granular level, serving up suggestions for individual consumers based on purchase history and other factors, and not just within the app.

“Imagine what can happen once we start to know, ‘oh, Brian’s coming in to the restaurant,’ and what we can do,” says Brady. “We’re quite optimistic that the benefits we’re seeing now will only continue to accelerate. “

Funneling customers through an app is critical not just for McDonald’s but all quick-service restaurants to some extent. While McDonald’s will continue to rely on third parties like Uber Eats for delivery, it plans to offer the ability to place those orders within its own app rather than outsource the entire process.

“All of this digital activity certainly creates a tremendous about of data,” says NPD Group food and beverage analyst David Portalatin. “If I walk into a restaurant today physically, unless I’m really a regular they don’t know my name, they don’t know what I ordered last time I was there, or how often I come. But in a digital world the algorithm can know all of those things. It can inform better suggestive selling, it can inform new menu development, it can inform limited time offers that are really relevant to specific customer needs.”

The digital push also raises inevitable questions about privacy and the impact on employment. Many of the more ambitions plans McDonald’s has in motion are too early-days to know for certain how it will handle the former, although the company notes that it has thus far introduced data-hungry mobile features as opt-in. Wary customers can skip MyMcDonald’s altogether. As for what Apprente and other efficiencies mean for staffing, Brady frames it as an opportunity to “reallocate” workers to other areas, like curbside pickup, that will need more support. And NPD’s Portalatin says that the shift to curbside pick-up has actually increased the demand for workers across the industry.

“The restaurant industry has had a labor challenge to begin with,” Portalatin says. “It’s not as if there are people beating down their door trying to work there. Just the opposite. They’re having a hard time getting people to work.”

It’s important to remember, too, that these changes will be slow-coming, to the extent they play out as rendered at all. “In combination, we think these initiatives could reach more than 10,000 restaurants” across the US and internationally, said McDonald’s US Chief Restaurant Officer Mason Smoot at Monday’s investor update. The company has 36,000 restaurants worldwide.

McDonald’s has rethought its business on multiple levels—including the introduction of a meatless McPlant burger—in a time of general uncertainty worldwide. It’s finally reaping the benefits of major technological investments dating back to last year. And the path for all of those efforts to succeed runs in one direction: through the drive-thru lane.

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The future McDonald’s is going to be a lot different. It could have a third drive-thru window along with a mobile-order lane complete with a conveyor belt that delivers food. The order taker could be automated. And it may or may not have seats inside.

During a presentation to investors earlier this week, the Chicago-based burger giant unveiled a series of changes that could change how the company’s restaurants interact with customers for years. They are designed to integrate digital ordering more fully into the McDonald’s ecosystem while pressing its advantage on drive-thru ordering and doubling down on delivery.

“Technology has changed our expectations as consumers,” Lucy Brady, McDonald’s chief digital customer engagement officer, said on Monday. “It isn’t just that we count on technology to make things simpler, easier, faster. Today, our assumptions around how things should work are shaped by whoever is doing it best.”

The effort is being made in the shadow of a pandemic that has shifted consumer habits in a hurry, emphasizing the importance of the drive-thru and making digital strategies paramount to a concept’s success.

“The needs of our customers coming through the pandemic are going to be different than they were coming in,” CEO Chris Kempczinski said at the outset of the presentation. “The restaurant experience we offer must change to meet these evolving needs.”

And, he notes, that all plays to the company’s strengths. “A world with less dine-in and more takeout plays to our significant long-time strength in drive-thru and our growing strengths in delivery and curbside.”

The upgraded drive-thru

The next person to take your order at the McDonald’s drive-thru may not even be a person.

McDonald’s is testing automated order-taking in its drive-thrus, a strategy that Mason Smoot, the company’s chief restaurant officer, said could improve speed and order accuracy. “We’re able to greet customers in a consistent manner when they arrive, accurately take their order and thank them for visiting McDonald’s,” Smoot said. “Our customers like it because it made the ordering process easier and more streamlined.”

About 65% of McDonald’s restaurants globally feature a drive-thru, and the company wants to build more—many of the 1,300 locations the company plans to build next year, mostly outside the U.S., will feature the window.

Going into the pandemic, the company had been upgrading technology, such as dynamic menu boards, while emphasizing speed. As the quarantine hit, McDonald’s dramatically cut from its menu to boost efficiency. The result: It cut 30 seconds from its drive-thru times, on average. The efforts worked like a charm, helping McDonald’s sales to recover more quickly than anticipated back in March as drive-thrus became a go-to spot for customers.

McDonald’s is testing other strategies designed to press that advantage. It is trialing an express lane for mobile ordering and pickup. The lane could feature a conveyor belt that brings food to the third lane. McDonald’s is also testing an “on-the-go restaurant format” that would have few or no indoor seats, just a drive-thru, takeout and delivery.

“We have the most drive-thrus,” Smoot said. “We also know how to do it best.”

Digital ordering ecosystem

McDonald’s is developing a new digital growth engine called MyMcDonald’s that combines the digital and customer-facing technologies the company has developed in recent years, including its in-store kiosks, outdoor digital menu boards and flexible payment systems.

The centerpiece is a loyalty program that will start testing in Phoenix in the coming weeks and is expected to debut next year, a long-awaited strategy already adopted by many of its big-chain rivals. Yet McDonald’s believes its experience will be seamless and can be used at any of its order points.

McDonald’s is testing an express pick-up at the front of its restaurant for mobile orders. And it is testing something it calls ID at COD, or identification at customer order display—a method for enabling customers to identify themselves when they order, whether it’s at a kiosk or the mobile app or the drive-thru.

Digital ordering has become significant during the pandemic. Brady noted that, in the company’s six largest global markets, digital sales are expected to exceed $10 billion, or nearly 20% of systemwide sales.

The MyMcDonald’s digital engine is “a single suite of compelling offerings” that give customers incentives to engage with the brand digitally, whether through mobile ordering, payments, delivery or rewards. It is “not just about the mobile app,” Brady said. “It extends to all digitally-enabled customer touchpoints from kiosk to table service to digital drive-thru and powers an omnichannel experience no matter what our customers want their McDonald’s to be at any moment.”

Doubling down on delivery

Delivery has also become significant during the pandemic. McDonald’s has the service at 28,000 of its 41,000 global restaurants. The service “has become a meaningful part of our business in just a few short years,” CFO Kevin Ozan said. Delivery sales have more than tripled, particularly during the pandemic that made ordering from home a relatively safe dining option.

McDonald’s plans to introduce the option to order delivery through its app in its top markets next year, enabling the company to “own the end-to-end delivery experience.” It is also considering self-delivery as an option in countries like Australia and Germany where third-party delivery doesn’t have enough coverage to meet demands.

The company already has self-delivery in places like China and the Middle East, and so the company would expand that option to other countries. “We have a good idea of what it takes and what conditions make sense,” Brady said. “As our business starts to get bigger, and we get to a certain size and scale, there are a lot of different models we’ll deploy depending on what conditions make sense.”

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Artificial Intelligence at McDonald’s – Two Current Use Cases

Ryan Owen holds an MBA from the University of South Carolina, and has rich experience in financial services, having worked with Liberty Mutual, Sun Life, and other financial firms. Ryan writes and edits AI industry trends and use-cases for Emerj's editorial and client content.

Dick and Mac McDonald opened the first McDonald’s restaurant in San Bernardino, California in 1940. By the end of the decade, the restaurant added its now-famous French fries. Ray Kroc joined the growing organization in 1954, purchased it in 1961, and served as its CEO into the early 1970s. Over the next decades, the restaurant chain grew, adding its drive-thru concept, Hamburger University, and iconic menu items like its Filet-O-Fish, Big Mac, and Quarter Pounder sandwiches. 

Today, McDonald’s is the world’s second-largest restaurant company by revenue and its largest fast-food restaurant chain with more than 39,000 locations in 119 countries. As of January 2022, McDonald’s trades on the NYSE with a market cap of approximately $200 billion. For the fiscal year ended December 31, 2021, McDonald’s reported total revenues of over $22 billion. 

McDonald’s created McD Tech Labs after its 2019 acquisition of Apprente, a voice technology firm, which in turn followed its earlier acquisition of Dynamic Yield, a Tel Aviv-based firm that specialized in personalization and decision logic technology. 

In 2020, McDonald’s announced its Accelerating the Arches growth strategy, which includes a “double down on the 3 D’s: Digital, Delivery and Drive-Thru,” and the integration of these newly acquired AI technologies. 

In this article, we’ll look at how McDonald’s has explored AI applications for its business and industry through two unique use-cases:

• Automated Drive-Thrus — McDonald’s acquired natural language processing and machine learning expertise through its 2019 acquisition of Apprente, which the chain has applied to its automated order-taking initiatives. 
• Order Prediction — McDonald’s uses machine learning-based decision technology to predict what menu offerings are most likely to drive sales in its drive-thru business. 

We will begin by examining how McDonald’s uses natural language processing and machine learning technology to speed its order-taking process as its drive-thru business has become more popular during the pandemic.  

Automated Drive-Thrus

Since the introduction of its first drive-thrus in the 1970s, McDonald’s has grown to rely on the model to attract and serve its guests. As of December 2021, McDonald’s offers drive-thru service in some 25,000 locations across the world, including at 95% of all US operations. Valued by consumers for its convenience and flexibility, the drive-thru model has taken on even more importance during the COVID-19 pandemic, representing some 70% of sales in top markets since March 2020. 

“Our drive-thru sales across our top six markets continue to stay elevated versus pre-pandemic levels even as dining rooms reopened,” said Chris Kempczinski, the chain’s president and CEO during its Q3 2021 earnings call. 

In addition to implementing drive-thru innovations like express pick-up, express drive-thru, and smaller “on-the-go” locations, McDonald’s is also looking to improve on its ordering and payment functions.  

The company made its biggest jump into innovating the order and payment components of the drive-thru process by beginning to automate drive-thru order-taking in 2018, and with its 2019 acquisition of Apprente. Later renamed McD Tech Labs, the acquisition enabled McDonald’s to implement and test automated order-taking at several of its US-based restaurants, Kempczinski said in October 2021.   

Apprente technology, per a Q3 2019 McDonald’s press release is a “voice-based [platform] for complex, multilingual, multi-accent, and multi-item conversational ordering.” McDonald’s hopes that using the solution’s natural language processing and machine learning capabilities will create a faster, simpler, and more accurate order-taking process at the company’s drive-thrus.   

Here Mason Smoot, McDonald’s Chief Restaurant Officer for the US, explains McDonald’s plans for its Automated Order-Taking technology at the Company’s Worldwide Connection 2.0 (WWC) Meeting:

Since 2018, McDonald’s reports that the chain has cut the time it takes to serve drive-thru customers by thirty seconds and claims that this has resulted in increased customer satisfaction. McDonald’s has announced plans to expand its drive-thru “innovations” to more than 10,000 locations worldwide. 

Automated order-taking boasts an 85% accuracy rating, Kempczinksi said at the Alliance Bernstein’s Strategic Decisions conference, adding that about 20% of orders have required human intervention. 

In its most recent earnings call, the chain reports substantial benefits for both customers and its employees, and has announced plans to continue to scale the technology to more than 14,000 locations across the country.  

To help drive that growth, McDonald’s entered into a “strategic relationship” with IBM in Q4 2021 to tap into their expertise in “building AI powered customer care solutions and voice recognition,” Kempczinski continued during the Q3 2021 earnings call. As part of the deal, automated order taking “will continue to be integrated into McDonald’s highly secure technology ecosystem.” 

Order Prediction

Digitization is coming to the drive-thru. As we drive around—and go inside—McDonald’s restaurants, we are increasingly met with digital displays, and those displays are growing smarter.   

In the United States alone, McDonald’s serves more than 25 million customers daily. In the chain’s top markets, some 70% of sales come through the drive-thru. As part of its Accelerating the Arches effort to make the drive-thru as efficient and convenient as possible for its customers, McDonald’s purchased Dynamic Yield in 2019, planning to leverage its decision technology to add personalization to its drive-thrus and modernize the customer experience. 

When McDonald’s added Dynamic Yield’s machine-learning-driven solution to its drive-thrus at select locations in 2018, the tech considered purchases made by other customers when updating the offerings presented on the ordering displays. The technology also updated the digital drive-thru menu displays based on:

• The time of day
• Current order selections
• Current restaurant traffic
• Popularity of menu items 
• Weather conditions

Here, at McDonald’s November 2020 Virtual Investor Update, Mason Smoot, McDonald’s Chief Restaurant Officer for the US, explains the company’s vision for its Drive-Thru strategy:

Through the machine-learning technology acquired in the Dynamic Yield transaction, McDonald’s digitized its point-of-sale process at its brick-and-mortar locations with decision technology. After testing the digital displays in several domestic markets in 2018, McDonald’s announced plans to continue its rollout to more US and international locations in 2019.

With Dynamic Yield’s machine-learning-driven decision technology, McDonald’s now offers digital displays that suggest items popular with other customers, or that are frequently purchased in certain weather or during a specific time of day. These digital displays can also suggest faster-to-prepare items to alleviate drive-thru slowdowns. 

Rumors first emerged in early 2021 that McDonald’s was considering selling its Dynamic Yield business. Possible reasons included disagreements about $70 million in technology fees that McDonald’s said were not paid by its franchisees. 

Later in 2021, in December, McDonald’s announced plans to sell Dynamic Yield to Mastercard. Although Dynamic Yield, with its portfolio of more than 400 global brands, will become part of Mastercard’s digital service strategy, Mastercard, through its President of Data & Services, stated that it plans to “continue working with McDonald’s.” 

While McDonald’s does not provide separate financial performance information for its Dynamic Yield business, the company does plan to continue using the technology in its bid to further personalize its customer experience and, at the time of the Dynamic Yield sale, reiterated its plans to “further scale and integrate Dynamic Yield’s capabilities globally and across ordering channels.”

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Fast and Pluribus: Impacts of a Globalizing McDonald’s

The expansion of McDonald’s in the twentieth century brought the fast food chain to more than 100 countries. But how well did it integrate into its new home(s)?

The connection between globalization and McDonald’s is a tale of scholarly metonymy. There’s no textual shortage of evidence that references the now-global fast food chain’s success in other countries , often linking it to themes of self-sufficiency, post-industrial stability, and democracy-formed capitalism.

Among these chunks of research is a more endogenous angle that examines the impact McDonald’s has had within offshore cultures; namely, how the American fast food model has been diffused across different countries. Such case studies, which look at individual cultural phenomena and their direct applications to globalization activity, refines not only the framework of McDonald’s in theories, but overall globalization processes and strategies as well.

Japan’s stylish renditions of fast food practices, for one, existed long before McDonald’s came to the country. Given the existing popularity of convenient and on-the-go meals—including conveyor belt sushi and street vendor meals—American fast food chains were bound to succeed. Scholars John W. Traphagan and L. Keith Brown investigate this supposition by employing an ethnographic model of research, building the argument that Japan not only assimilated—but basically swallowed whole—the McDonald’s dining model , to the point that younger people especially believe McDonald’s is a Japanese company.

Traphagan and Brown emphasize that, rather than “styles of preparation or ingredients,” fast food is defined by “a style of selling food.” Essentially, McDonald’s brought no real paradigm shifts to Japan—but rather constructed a space in which already-formed Japanese cultural practices could continue.

Their case study contrasts with that of geographers Ray Oldakowski and John McEwen, who similarly investigate McDonald’s and its cultural assimilation—but in Ecuador. Their evidence shows that the integration of American fast food dining followed a different path , and McDonald’s remains an obviously foreign establishment in the cityscape. McDonald’s didn’t attempt to adapt to Japanese or Ecuadorian culture (for McDonald’s, “the strategy has been one of consistency, i.e. McDonald’s prefers not to change its way of doing business to adapt to foreign cultures, rather, it changes local cultures to meet its own needs,” they note), but Ecuadorians clearly viewed the fast food chain as a deviation from local tastes, unlike Japanese consumers.

“[A] comparison of exterior designs revealed that the McDonald’s in Guayaquil [Ecuador] were very similar to the typical McDonald’s restaurants in the United States,” write the authors. Moreover, the menus were also similar. Only 2 percent of those polled considered the food served at McDonald’s similar to Ecuadorian food. In contrast, very few interviewees considered Kentucky Fried Chicken—another American fast food establishment—different from Ecuadorian food. Eighty-four percent reported that KFC was the most similar to Ecuadorian food, and 68 percent said it was actually where they dined regularly.

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“Those results suggest that McDonald’s might gain new customers, and more visits from existing customers, if they also offered menu items more typical of Ecuadorian food,” conclude the authors.

In neither Japan nor Ecuador did McDonald’s actively work to adapt itself to the tastes of the host countries, but the depth of integration into local dining customs differed between the two nations. Such observations could prompt additional nation-specific analyses and possibly reveal additional adaptations to the “strategy of consistency” associated with McDonald’s. However, the study of the globalization of fast food from a micro-cultural angle requires challenging assumptive attitudes around American businesses and classical theories, with one of the most popular—and infamously controvertible—examples being the Golden Arches Theory of Conflict Prevention , built on tropes of democratic peace through development. Globalization and its effects could also be examined in light of McDonald’s cultural impacts on its origin country of America, opening a conversation on socio-economics and class .

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McDonald’s Digital Innovation Approach Ignites Global Growth

• November 3, 2023
• Business Growth , Market Trends , Marketing , Social Media

In a world where adaptability and innovation are the keys to survival, McDonald’s , the world’s leading fast-food giant, continues to set new standards for excellence. 

Facing the challenges posed by soaring inflation rates and evolving consumer preferences head-on, the brand not only maintains its strong position but propels itself forward through strategic digitalisation and an unwavering commitment to delivering exceptional value. 

This in-depth news feature delves into the intricacies of how McDonald’s is utilising digital promotions, such as McDonald’s Monopoly , to revolutionise the customer experience and solidify its global presence.

Digital Transformation at the Helm

At the forefront of McDonald’s remarkable journey of transformation is its CEO, who champions the cause of digitalisation . 

They reaffirm the brand’s pledge to innovation, emphasising that McDonald’s will continue to reinvent itself even when operating from a position of strength. 

Furthermore, this visionary approach ensures that McDonald’s is not content to rest on its laurels but constantly evolves to meet the ever-changing demands of the market. 

Value-Centric Strategy

As consumers become increasingly discerning due to the pressure of high inflation rates, McDonald’s has made value a central focus of its strategy. 

Recent menu innovations, including the introduction of ‘saver meals’ in the United Kingdom , highlight McDonald’s commitment to providing affordability without compromising on quality.

Monopoly: A Winning Formula

One standout example of McDonald’s commitment to value is the enduring success of the McDonald’s Monopoly initiative. 

Celebrating its 17th year in the UK this September, the promotion ran both digitally and on physical packaging, offering customers the coveted opportunity to ‘double peel.’ 

This ingenious promotion not only bolstered perceptions of value but also resulted in a significant uptick in app usage, achieving higher levels of app engagement than ever before.

Double Peel – New McDonald's @McDonalds campaign by Leo Burnett @LeoBurnettAR https://t.co/akK5UULwQ9 #creativity #inspiration #advertising — Ads of the World™ (@adsoftheworld) September 6, 2023

Global Reach, Global Success

The triumph of the Monopoly campaign transcended borders. In Australia , the most recent quarter saw record-breaking digital sales, driven by consumers registering in the app and redeeming Monopoly game pieces. 

What’s more, a similar success story unfolded in Spain , where the initiative contributed to increased digital engagement for McDonald’s. Impressively, in the third quarter, digital sales accounted for over 40% of McDonald’s sales in its top six markets, which prominently includes the United Kingdom.

Strengthening Customer Connections Digitally

McDonald’s expanded digital presence goes beyond boosting sales figures. It also fosters stronger connections with customers, even those who may have lapsed in their patronage . 

As the final quarter of the year approaches, McDonald’s in the UK is gearing up for the ‘ Festive Wins ‘ promotion, offering consumers daily app-exclusive offers, ranging from 99p Big Macs to weekend competition entries. 

However, to access these enticing offers and prizes, customers must continue using the app, reinforcing the brand’s digital engagement strategy .

One McDonald’s Way: Globally Consistent, Locally Relevant

The ‘one McDonald’s way’ approach ensures that global practices remain consistent while being tailored to local preferences. 

This principle extends not only to promotions but also to advertising . An exemplary instance is the ‘ As Featured In ‘ campaign, launched in over 100 markets earlier this year, which celebrates McDonald’s place in cultures around the world.

McDonalds has released their “As Featured In…” movie, including a new look at ‘LOKI’ Season 2. pic.twitter.com/yrgKS3Xu87 — DiscussingFilm (@DiscussingFilm) August 14, 2023

Navigating Inflation with Precision

While grappling with the impacts of inflation, McDonald’s has demonstrated remarkable agility. Collaborating closely with third-party advisors who make price recommendations, the company executes price increases analytically. 

This approach minimises customer resistance while maximising the revenue generated from these price adjustments. Furthermore, McDonald’s continues to lead its competitors in affordability and value for money perceptions, firmly establishing value as an integral part of its brand identity .

In a dynamic and ever-evolving landscape, McDonald’s stands as a symbol of adaptability and innovation. The brand’s steadfast commitment to digitalisation, unwavering focus on value, and globally consistent yet locally relevant strategies have propelled it to new heights. 

With the highly successful Monopoly campaign and a series of ongoing digital initiatives, McDonald’s continues to strengthen its bond with consumers while ensuring sustainable growth , even in the face of economic adversity. 

Finally, McDonald’s remarkable journey serves as an inspiring testament to the power of innovation, resilience, and an unshakable commitment to delivering exceptional value to customers around the globe.

News Credit: Marketing Week

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McDonald’s and the Challenges of a Modern Supply Chain

Three lessons.

Recently, McDonald’s, the world’s iconic largest food service provider, has been (forgive the cliché) through the grinder. Poor performance has led to the departure of its CEO and plenty of critical attention in the business pages . Part of this story relates to the provenance, or origins, of its products: Chains that provide more upmarket “fast casual” dining such as Panera, Chipotle, and Shake Shack have brands that speak of freshness, health, and trustworthy sourcing.

• Steve New teaches operations and supply-chain management at the University of Oxford’s Saïd Business School and is a fellow of Hertford College.

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Strategy: Technology and Innovation at McDonald’s

Fast-food restaurants have embraced technology as part of their respective business strategies. McDonald’s Corporation is a prime example. It has invested in pursuits aimed at building its technological capabilities to capitalize on the benefits of innovation across its value chain and maximize further its earning potential. Technology and innovation have become part of its business strategy and its source of competitive advantage .

How McDonald’s Uses Technology and Innovation to Add Further Value to Its Business By Improving Its Operations and Elevating the Customer Experience

The company has a dedicated Global Technology department that works under the Global Chief Information Officer or CIO and alongside other critical departments and executive heads such as the Senior Executive VP for Strategic Initiatives, the Global Chief Impact Officer, the Chief Financial Officer, and the Chief Data Analytics Officers, among others

Note that the CIO is responsible for managing the entire technology portfolio and partnerships of McDonald’s with the main purpose of transforming customer and employee experiences, as well as accelerating business growth worldwide.

The Global Technology department is headquartered in the United States and it has been responsible for developing and deploying technology-based solutions and innovations geared toward supporting the companywide Accelerating the Arches growth strategy. The team under this department is behind some of the latest developments at McDonald’s stores.

It is worth mentioning that the company was behind numerous ventures that have been acquired by other companies such as McD Tech Labs which is involved in an AI-based automated ordering system and Dynamic Yield which is an AI-based marketing solution.

The department has since created numerous teams. For example, it incubated a digital information team in 2014 that deployed technologies for in-store dining, drive-thru service, and food deliveries. It assembled a digital customer engagement team in 2020 tasked to improve the different aspects of its digital services such as ordering and payments.

Improving Business Operations

Part of the technology strategy of McDonald’s is to use business intelligence and data analytics to solve problems in the different facets of its value chain and improve its business operations. Take note of the following pursuits and accomplishments:

• Addressing Employee Turnover: The company became infamous for its high employee turnover rate. The company has since partnered with companies such as Sprockets to utilize artificial intelligence in its selection and hiring process. It now has the capability to screen applicants and predict their long-term employment success based on 55 predefined needs, values, and personality traits.

• Supply Chain Management: It also uses AI and big data to optimize its supply chain. The company has integrated real-time operations, inventory systems, and supply chain processes using information systems and supplemented further by AI algorithms for a faster and more efficient replenishment of its inventories at individual stores and warehouses in consideration of demand and supply.

• Automation of Operations: The company has also implemented automation solutions using AI, big data analytics, and the internet of things or IoT to optimize further its operations. It has also invested heavily in reskilling staff and personnel that would be displaced by its push to automate certain areas of its business to place them in other areas that require unique human abilities.

Elevating the Customer Experience

The company has also leveraged its technological capabilities to supplement its marketing strategy , introduce new value-added services inside its stores, and expand its market reach through out-of-store services. Below are notable examples:

• Analytics for Better Loyalty Program: Restaurants use rewards and loyalty programs as part of their sales promotion strategy . The specific program of McDonald’s involves using data obtained from customers to analyze food orders and habits. These analyzed data are used to determine specialized deals that would attract more customers, push a particular product or promotions , and upsell, thus resulting in more sales while also giving customers rewards for their continuous patronage.

• Focus on Drive-Thru and Delivery Services: The coronavirus pandemic proved that drive-thru and food delivery services are critical to the survival of restaurant businesses. The company has been improving its drive-thru service and some of its stores are equipped with an AI-enabled voice system that automates order-taking. It has also developed its website and mobile application to maximize its sales from food deliveries or out-of-store dining experiences.

• Modernizing In-Store Customer Experience: It has also developed and deployed numerous solutions aimed at optimizing the operation of its stores. These include the placement of self-service kiosks that shorten queues and improve the dine-in experience while upselling other products, modernizing its point-of-sales to take into consideration modern payment solutions, and robots and other automated solutions to assist restaurant staff in food preparation and different facets of customer service.

• Personalization of Food Products and Services: The company continues to experiment with different technologies aimed at delivering personalized products and services. For example, in several testing stores, it has installed dynamic menu boards that use artificial intelligence to promote specific products based on the time of the day, weather, popularity of existing products, and foot traffic. Its mobile app also uses AI to provide suggested food items based on the profile of individual app users.

• Exploring the Benefits and Applications of the Metaverse: The metaverse is a virtual platform that provides a higher degree of interactivity among its users and within a digital environment. The company has filed patent applications indicating that it is developing so-called virtual restaurants that would exist in a particular metaverse platform. The applications have also revealed that it is planning to sell virtual items and is looking into issuing non-fungible tokens or NFTs within the metaverse.

McDonald's Corporation: The World's Leading Fast Food Chain [Case Study]

Devashish Shrivastava , Anik Banerjee

McDonald's Corporation is an American fast-food organization established in 1940 as a café by Richard and Maurice McDonald, in San Bernardino, California, United States. They rechristened their business as a burger stand and later transformed the organization into an establishment; the Golden Arches logo being presented in 1953 at an area in Phoenix, Arizona.

Ray Kroc, a businessperson, joined the organization as an established operator in 1955 and continued to buy the chain from the McDonald's siblings. McDonald's had its base camp in Oak Brook, Illinois, and moved its worldwide base camp to Chicago in mid-2018.

McDonald's is worth $185+ bn today. It is the world's biggest eatery network by revenue. It was last registered to be serving 69+ million customers each day in more than 120 countries across over 39,000 outlets.

Although McDonald's is best known for its burgers, cheeseburgers, and french fries, its menu also includes chicken items, breakfast things, sodas, milkshakes, wraps, and sweets. In light of changing buyer tastes and a negative backfire on account of the wretchedness of its food, the organization has added mixed greens, fish, smoothies, and natural products to its offerings.

McDonald's Corporation's income originates from leases and charges paid by the franchisees. According to two reports distributed in 2018, McDonald's is the world's second-biggest private manager with 1.7 million representatives (behind Walmart with 2.3 million workers).

Here's bringing you the McDonald's company profile that will present to you McDonald's company overview, when was McDonald's founded, McDonald's growth over the years, about McDonald's, McDonald's owner name, founder of McDonald's corporation, McDonald's history and background, McDonald's case study marketing, and more.

McDonald's - Company Highlights

McDonald's - Startup Story and History McDonald's - Mascot/Logo McDonald's - Business Model And Market Strategy McDonald's - Target And Mission McDonald's - Growth McDonald's - Restaurants And Services McDonald's - Future

McDonald's - Startup Story and History

Richard and Maurice McDonald in 1940, opened the primary McDonald's at 1398 North E Street at West fourteenth Street in San Bernardino, California; however, it was not the McDonald's you know today. Ray Kroc made changes to the siblings' business and modernized it.

The siblings presented the "Speedee Service System" in 1948 by extending the standards of cutting-edge drive-thru eatery that their antecedent White Castle had tried over two decades earlier. McDonald's emerged with a delivery model where it made its food on a supply belt and delivered it within 2 minutes.

It looked like a fantastic and impossible eatery that had:

• Only burgers, fries, and shakes on the menu • No plates or waiters to serve the customers

However, when Ray Kroc came, he was astonished by the never-ending waiting lines that were there waiting for their orders from McDonald's.

Kroc was then 50 already and was selling milkshake mixers door to door. Ray Kroc had earlier tried his hand in many things but never had attained success in his whole life. He already worked as a musical director, pianist, and had also worked as a real estate guy, in the paper cup industry, and as a seller of kitchen appliances, but he couldn't hold on to one thing among them all. Thus, Kroc was a person who lived from paycheck to paycheck.

Kroc came to McDonald's to deliver an absurd order of 8 milkshake mixers for just one area. He wondered "why would someone want to make 40 milkshakes at a time?" This is why he drove to California, at McDonald's to see the place himself.

Seeing the huge demand for McDonald's burgers, fries, and shakes, Kroc sensed a huge opportunity. He soon pushed the founders of the store to embrace a franchise model. The McDonald's brothers who owned the business, were living a comfortable life then, getting rich by the day, and buying Cadillacs as they filled their pockets. They didn't have vision nor they were eager to expand. However, Ray convinced them and rushed to work, as soon as he did that.

He assumed the role by taking 2 major steps back to back:

• Mortgaging his house when he was already 52
• Opening 18 new outlets in the very first year

This has helped the company scale big time, and McDonald's now boasts of:

• Serving 2.3+ billion burgers a year
• Serving 39,000+ restaurants across more than 120 countries
• Being the 4th largest employer in the world
• Being the largest toy distributor in the world

Though it was Ray's idea and the expansion was promising, the McDonald's brothers made an unfair deal with him. Kroc was allowed only 2% of the profits. McDonald's being to scale aggressively but the founders of McDonald's wasn't really happy with Ray and his scaling. This is why Ray borrowed and bought them out for $2.7 mn, thereby becoming the 100% owner of McDonald's.

The organization attributes its success to Ray Kroc. Kroc later bought the McDonald siblings' value in the organization and was responsible for McDonald's overall reach. He was seen as a forceful colleague, driving the McDonald siblings out of the business. Kroc and the McDonald's siblings battled for control of the business, as recorded in Kroc's life account.

The San Bernardino eatery was torn down (1971, as indicated by Juan Pollo) and the site was offered to the Juan Pollo chain in 1976. This zone currently fills in as central command for the Juan Pollo chain, and a McDonald's and Route 66 museum.

With the development of McDonald's into numerous universal markets, the organization has turned into an image of globalization and the American lifestyle. Its unmistakable quality has additionally made it a regular point of open discussions about heftiness, corporate morals , and shopper obligation.

McDonald's - Mascot/Logo

The first mascot of McDonald's was a cooking cap over a burger who was alluded to as "Speedee" . In 1962, the Golden Arches supplanted Speedee as the all-inclusive mascot. The image of jokester Ronald McDonald was presented in 1965. Ronald McDonald showed up to promote amongst children.

On May 4, 1961, McDonald's initially petitioned for a U.S. trademark on the name "McDonald's" with the portrayal "Drive-In Restaurant Services". By September 13, McDonald's, under the direction of Ray Kroc, petitioned for a trademark on another logo—a covering, twofold curved "M" image.

Before the twofold curves, McDonald's used a solitary curve for the design of its structures. Even though the "Brilliant Arches" logo showed up in different structures , the present form was not utilized until November 18, 1968, when the organization was given a U.S. trademark.

McDonald's - Business Model And Market Strategy

The business and revenue model of McDonald's includes almost 37000 outlets which spread to more than 120 nations. Today, McDonald's is the biggest eatery network on the planet in terms of income.

Initially launched as a Drive-In Hamburger Bar, the idea was advanced in 1940 by The McDonald Brothers, Richard James (Dick), and Maurice James (Mac) McDonald. It was after the presentation of the Speedee Service System with shakes, fries, and burgers costing as low as 15 pennies that the McDonald Brothers started the establishment of McDonald's Hamburgers.

In 1954, Ray Kroc turned into the establishment operator of the McDonald Brothers. The main McDonald's eatery was opened by Kroc in 1955 in Des Plaines, Illinois, USA. It was in the year 1961 that the rights to the eating joint of the kin were obtained by McDonald's for a powerful total of $2.7 million.

You may likewise be astonished to realize that when the first McDonald's eatery opened, the extremely well-known McD french fries were eaten with no ketchup! The revenue model of McDonald's, the world's quickest developing food chain, is an interesting one.

McDonald's - Target And Mission

McDonald's endeavours hard to be its clients' "most loved spot and approach to eating". McDonald's plan of action is fixated on the ground-breaking strategy "Plan To Win", which is placed into requests around the world.

With the mission of "Quality, Service, Cleanliness, and Value", McDonald's has clung to each of these characteristics. Client experience is improved by the selection of five fundamentals: people, products, place, price, and promotion.

Additionally, McDonald's plans to give high-review nourishment, at effectively reasonable costs to individuals over the globe. The deals at McDonald's are furrowed through an efficient deals channel which guarantees remarkable consumer loyalty on all occasions.

Astounding Vision

When Ray Kroc opened the Original McDonald's in Illinois, he had a dream of expanding the franchise across the globe with more than 1000 outlets in the States itself. Remaining consistent with its guarantee, McDonald's widened its worldwide handle by opening joints outside the US as early as 1967.

The first international outlets were opened in Canada and Peurto Rico. By January 2018, McDonald's was situated in 120 nations and had about 37200 cafés with 1.9 million workers. It was serving more than 69 million individuals every day. At one point in time, McDonald's was opening a new outlet every 14.5 hours!

Significant Growth Strategy

McDonald's has clutched a promising development technique to serve customers and spread its wings. The presentation of the "Speed Growth Plan" in March 2017 enhanced the development of the business.

McDonald's development system depends on retaining, regaining, and converting. McDonald's strives to hold on to its old clients, recapture the lost trust, and convert easygoing clients into ordinary ones.

What's more, it has additionally embraced three quickening agents: digital, food delivery, and experience of things to control its monstrous development. It keeps on reshaping cooperation with clients and raising the level of consumer loyalty and experience through innovation and human endeavours.

Decent Variety

Monetarily, McDonald's has affected the world more significant manner than some other organizations. McDonald's adheres to the conviction "Decent variety is Inclusion" and doesn't leave a solitary opportunity to make each person from every network feel regarded. Its suggestion of "Decent variety is Inclusion" has affirmed its situation at the top position.

The McDonald's way of life revolves around the following: customer-obsessed, better together, and committed to lead. These coupled with its conviction has caused the fast-food chain to exceed expectations in the field of business enterprise and showcasing.

McDonaldization

McDonald's can appropriately be named as one of the best organizations to be involved in the worldwide system. The worldwide broadening of the McDonald's is regularly alluded to as "McDonaldization." Its accomplishment in more than 120 nations can be credited to its hierarchical structure.

The hierarchical structure of McDonald's mulls over expanding localization, and in this way, the entire plan of action of McDonald's is normally redone thinking about the mass intrigue in different nations.

Fruitful Acquisitions

The McDonald's Corporation Mergers and Acquisitions (M&A) have, since its inception, entertained itself with cautious acquisitions. Donato's Pizza which is a Midwestern chain of 143 eateries was obtained by McDonald's on 6 May 1999. Aside from securing Donato's, it acquired the Boston Market on 18 May 2000. Boston Market is a drive-through eatery chain that essentially focuses on home-style sustenance.

Supporting Employees

McDonald's doesn't, in any capacity, hamper the development of its workers. It bolsters its representatives in every possible way and empowers them to set up business systems.

At McDonald's, the work environment is brimming with positivity, connections are advanced, professional openings are supported, and business development is sustained.

Coaches, good examples, and backers are accessible at all times to direct the employees on successful initiatives, professional procedures, and prosperous business.

Engagement Of Community And Education

Aside from being one of the best good-quality fast food options, McDonald's investigates every possibility to endeavour for the network it serves. It effectively takes part in network administration and continues to have a critical effect on assorted networks.

The Global Diversity, Inclusion, and Community Engagement Team alongside its key accomplices have fabricated cherished relations with different network-based associations. McDonald's Hamburger University readies its workforce to maintain the multi-billion dollar business and worldwide initiative improvement programs.

McDonald's - Growth

McDonald's eateries are found in 120 nations and serve 69 million customers each day. McDonald's operates 39,000 restaurants/cafés around the world, utilizing more than 210,000 individuals as part of the arrangement. They help operate 2,770 organization possessed areas and 35,085 diversified areas, which incorporates 21,685 areas diversified to regular franchisees, 7,225 areas authorized to formative licensees, and 6,175 areas authorized to remote affiliates.

Concentrating on its centre image, McDonald's started stripping itself of different chains it had gained during the 1990s. The organization possessed a large stake in Chipotle Mexican Grill until October 2006 when McDonald's was completely stripped from Chipotle through a stock exchange .

Until December 2003, it likewise claimed Donatos Pizza, and it claimed a little portion of Aroma Café from 1999 to 2001. On August 27, 2007, McDonald's sold Boston Market to Sun Capital Partners.

Outstandingly, McDonald's has expanded investor profits for 25 back-to-back years, making it one of the S&P 500 Dividend Aristocrats. The organization is positioned 131st on the Fortune 500 of the biggest United States companies by revenue.

In October 2012, its month-to-month deals fell without precedent for nine years. In 2014, its quarterly deals fell without precedent for a long time, when its deals last dropped for the whole of 1997.

In the United States, McDonald's accounts for 70% of sales in drive-throughs. McDonald's shut down 184 eateries in the United States in 2015, which was 59 more than what they wanted to open.

Starting in 2017, the income was roughly $22.82 billion. The brand estimation of McDonald's is more than $88 billion; outperforming Starbucks with a brand estimation of $43 billion. The total compensation of the organization in 2017 was $5.2 billion; this worth saw an ascent of about 11% from the previous year.

McDonald's is, without a doubt, the quickest developing drive-thru eatery chain on the planet. In 2018, McDonald's developed as the most profitable inexpensive food chain with a brand worth nearing $126.04 billion. Also, the all-out resources of McDonald's were almost $33.8 billion.

The world's quickest developing cheap fast food chain partitions its market into four unique areas: U.S., International Lead Markets, High Growth Markets, and Foundational Markets and Corporate.

According to the report set forth by the organization in the year 2017, the market in the U.S. created the biggest measure of income at $8 billion. The International Leads Markets which includes Australia, Canada, France, Germany, and the U.K. created an income of $7.3 billion.

The High Growth Markets which incorporate China, Italy, Korea, Poland, Russia, Spain, Switzerland, the Netherlands, and comparative brought in about $5.5 billion in revenue.

The Foundational Markets and Corporate incorporate the rest of the business sectors. Furthermore, it additionally incorporates a wide range of corporate exercises. The income created by this section of the market represented roughly $1.9 billion.

McDonald's - Restaurants And Services

In certain nations, "McDrive" areas close to roadways offer no counter administration or seating. interestingly, areas in high-thickness city neighbourhoods frequently preclude pass-through service. There are likewise a couple of areas, found for the most part in the downtown locale, that offer a "Walk-Thru" administration instead of a Drive-Thru.

McCafé is a bistro-style backup to McDonald's cafés and is an idea conceived by McDonald's Australia (likewise known, and promoted, as "Macca's" in Australia), beginning with Melbourne in 1993. As of 2016, most McDonald's outlets in Australia have McCafés situated inside the current McDonald's eatery.

In Tasmania, there are McCafés in each eatery, with the rest of the states rapidly following suit. After moving up to the new McCafé look and feel, some Australian eateries have seen up to a 60% expansion in deals. There were more than 600 McCafés around the world some time back.

Create Your Taste

From 2015–2016, McDonald's attempted another gourmet burger administration and eatery idea dependent on other gourmet cafés, for example, Shake Shack and Grill'd. It was taken off without precedent for Australia in early 2015 and extended to China, Hong Kong, Singapore, Saudi Arabia, and New Zealand with progressing preliminaries in the US showcase.

In committed "Make Your Taste" (CYT) booths, clients could pick all fixings including a kind of bun and meat alongside discretionary additional items. In late 2015, the Australian CYT administration presented CYT servings of mixed greens.

After an individual had requested, McDonald's prompted that hold up times were between 10–15 minutes. At the point when the nourishment was prepared, the prepared group ('has') carried the sustenance to the client's table.

Rather than McDonald's typical cardboard and plastic bundling, CYT nourishment was exhibited on wooden sheets, fries in wire bushels, and servings of mixed greens in china bowls with metal cutlery. A more expensive rate connected. In November 2016, Create Your Taste was supplanted by a "Mark Crafted Recipes" program intended to be increasingly proficient and less expensive.

McDonald's Happy Day

McHappy Day is a yearly occasion at McDonald's during which a portion of the day's deals goes to philanthropy. The collections on this day go to Ronald McDonald House Charities.

In 2007, it was celebrated in 17 nations: Argentina, Australia, Austria, Brazil, Canada, England, Finland, France, Guatemala, Hungary, Ireland, New Zealand, Norway, Sweden, Switzerland, the United States, and Uruguay. As indicated by the Australian McHappy Day site, McHappy Day brought $20.4 million up in 2009. The objective for 2010 was $20.8 million.

McDonald's Monopoly Donation

In 1995, St. Jude Children's Research Hospital got a mysterious letter stamped in Dallas, Texas, containing a $1 million winnings McDonald's Monopoly game piece. McDonald's authorities went to the medical clinic, joined by a delegate from the bookkeeping firm Arthur Andersen, inspected the card under a diamond setter's eyepiece, took care of it with plastic gloves, and checked it as a winner.

Although game guidelines disallowed the exchange of prizes, McDonald's deferred the standard and made the yearly $50,000 annuity instalments for the full 20-year time frame through 2014, even in the wake of discovering that the piece was sent by an individual associated with a theft plan meant to cheat McDonald's.

McRefugees are destitute individuals in Hong Kong, Japan, and China who utilize McDonald's 24-hour cafés as transitory lodging. One out of five of Hong Kong's populace lives underneath the destitution line. The ascent of McRefugees was first archived by picture taker Suraj Katra in 2013.

McDonald's - Future

The reported objective is to source all visitor bundling from inexhaustible, reused, or ensured sources, reuse visitor bundling in 100% of eateries, and overcome framework challenges by 2025.

McDonald's turned into the principal eatery organization on the planet to set an endorsed Science-Based Target to lessen ozone-depleting substance emanations. It also joined the "We Are Still In Leader's Circle", driving activity to relieve environmental change.

McDonald's USA completed five years as the sole worldwide café organization to serve MSC-ensured fish in each U.S. area. It united with Closed Loop Partners to build up a worldwide recyclable and additionally compostable cup arrangement through the NextGen Cup Challenge and Consortium. Official pioneers called for atmosphere activity and offered arrangements at the primary Global Climate Action Summit (GCAS).

McDonald's co-facilitated the "Way to Greenbuild" occasion with Illinois Green Alliance at its new worldwide home office. The structure, a collaboration among Sterling Bay, McDonald's, and Gensler Chicago, got USGBC LEED Platinum accreditation.

McDonald's is establishing the tone for other inexpensive food organizations to pursue. Given the present want by numerous buyers to spend cash on organizations that are doing great on the planet, where McDonald's leads, others will pursue.

Who is the founder of McDonald's?

McDonald's was founded by Richard McDonald and Maurice McDonald on 15 April 1955 in California, United States.

Who is the CEO of Mcdonald's?

Chris Kempczinski is the CEO of Mcdonald's since Nov 2019.

Who is the owner of McDonald's in India?

In India, McDonald's is a joint-venture company managed by two Indians- Amit Jatia (M.D. Hardcastle Restaurants Private Ltd) and Vikram Bakshi ( Connaught Plaza Restaurants Private Ltd).

When was the fast-food chain McDonald's founded?

Mcdonald's was founded in 1940 in San Bernardino, California.

How much does a Mcdonald's franchise owner make?

An average Mcdonald's franchise generates $150,000 annually.

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MacDonald Change Management Case Study

McDonald’s, one of the most recognizable fast-food chains in the world, has undergone significant changes in recent years to adapt to changing market trends and consumer preferences. 

These changes required a comprehensive change management strategy to ensure a smooth transition and successful implementation. 

In this case study, we will examine external and internal factors that forced McDonald’s to initiate changes, key steps taken to implement those change, and the results of the change management.

Let’s start with overview and background of MacDonald.

Overview of MacDonald History 

McDonald’s is a global fast-food chain that was founded in 1940 by Richard and Maurice McDonald in San Bernardino, California. 

The original concept was a small drive-in restaurant that served burgers, fries, and milkshakes. 

In the 1950s, Ray Kroc, a milkshake machine salesman, became involved in the business and helped to transform it into a franchise model, which rapidly expanded across the United States and eventually the world. 

Today, McDonald’s operates over 38,000 locations in more than 100 countries and serves approximately 69 million customers daily. 

Over the years, McDonald’s has faced many challenges and has adapted to changes in the market and consumer preferences, which has required the company to implement significant changes in its business model and operations

External factors that caused change 

There were several external factors that contributed to the need for change at McDonald’s. Here are a few examples:

• Changing consumer preferences: Consumers are becoming more health-conscious and are demanding healthier food options. As a result, McDonald’s had to adapt its menu to include more salads, fruits, and vegetables to appeal to these consumers.
• Increased competition: There is intense competition in the fast-food industry, and McDonald’s faces competition from both traditional fast-food chains and newer, more innovative brands. To stay competitive, McDonald’s had to find ways to differentiate itself and offer unique value propositions to customers.
• Economic factors: Economic downturns and changes in consumer spending habits can have a significant impact on fast-food sales. McDonald’s had to adapt to changing economic conditions and find ways to maintain sales growth during challenging times.
• Technological advancements: Advancements in technology have transformed the way that consumers order food and interact with restaurants. McDonald’s had to embrace new technologies such as mobile ordering and delivery services to meet the changing needs of its customers.

Internal factors that caused change 

There were several internal factors that contributed to the need for change at McDonald’s. Here are a few examples:

• Declining sales: McDonald’s experienced declining sales in certain markets, which prompted the company to re-evaluate its business model and operations.
• Operational inefficiencies: McDonald’s had become too reliant on its traditional business model and was struggling to keep up with changes in the industry. The company had to find ways to streamline its operations and make them more efficient to remain competitive.
• Cultural resistance to change: McDonald’s had a culture that valued consistency and uniformity, which made it challenging to implement significant changes. The company had to overcome this cultural resistance and find ways to foster a culture that supported innovation and change.
• Employee engagement: McDonald’s recognized that its employees play a vital role in the success of the company and had to find ways to engage and motivate them during the change management process. The company had to communicate effectively with its employees and provide them with the tools and resources needed to embrace the changes.

What were 03 biggest changes that Macdonald successfuly implemented

There were several significant changes that McDonald’s successfully implemented as part of its change management process. Here are three of the most significant changes:

• Menu diversification: McDonald’s recognized the need to adapt its menu to changing consumer preferences and introduced a range of healthier menu items such as salads, fruit, and grilled chicken sandwiches. The company also expanded its breakfast menu to include all-day breakfast and introduced new menu items such as the McWrap to appeal to a wider range of customers.
• Digital transformation: McDonald’s recognized the importance of embracing new technologies and embarked on a digital transformation strategy. The company introduced self-service kiosks in its restaurants, mobile ordering, and delivery services. McDonald’s also launched its own mobile app, which allows customers to order and pay for their food from their mobile devices.
• Restaurant redesign: McDonald’s recognized the need to create a more modern and appealing restaurant experience to attract younger customers. The company invested in a redesign of its restaurants, which included a more contemporary design, comfortable seating, and interactive features such as touchscreen ordering. The company also introduced table service in select locations to improve the customer experience.

These changes were significant and helped McDonald’s to remain competitive and appeal to changing consumer preferences. The successful implementation of these changes required a comprehensive change management strategy that involved collaboration with employees, effective communication, and a commitment to innovation and continuous improvement.

MacDonald’s leadership role in implementing change initiatives

McDonald’s leadership played a crucial role in the successful implementation of change initiatives. The company’s leadership recognized the need to adapt to changing consumer preferences and competitive pressures and committed to a comprehensive change management strategy to drive growth and improve performance.

One of the key leadership roles was played by Steve Easterbrook, who served as the CEO of McDonald’s from 2015 to 2019. Under Easterbrook’s leadership, McDonald’s implemented several changes, including menu diversification, digital transformation, and restaurant redesign.

Easterbrook was instrumental in driving the company’s innovation agenda and creating a culture of continuous improvement. He encouraged employee engagement and empowerment, which helped to drive innovation and ensure that employees were invested in the changes.

Easterbrook also prioritized effective communication, ensuring that employees and customers were informed about the changes and that feedback was solicited and acted upon.

In addition to Easterbrook, McDonald’s leadership team was also instrumental in the successful implementation of change initiatives. The company’s leadership team provided the vision, strategic direction, and resources necessary to implement the changes effectively. They also provided the support and guidance necessary to overcome resistance to change and ensure that the changes were embraced by employees and customers.

Results of the successful change management implemented by MacDonald

One of the biggest outcomes of the changes implemented by McDonald’s was an improvement in its financial performance. The changes helped the company to increase sales, improve profitability, and strengthen its competitive position in the fast-food industry.

For example, McDonald’s menu diversification strategy helped to attract new customers and retain existing customers who were looking for healthier food options. The introduction of digital ordering and delivery services also made it easier for customers to order from McDonald’s and increased the convenience factor, which helped to drive sales growth.

In addition, the restaurant redesign helped to create a more modern and appealing restaurant experience, which helped to attract younger customers and improve customer satisfaction. The successful implementation of these changes helped McDonald’s to achieve its financial goals and improve its overall performance.

Another significant outcome of the changes was the improvement in McDonald’s brand perception. The company’s menu diversification and focus on healthier food options helped to improve its reputation and attract customers who may have previously avoided McDonald’s due to concerns about the nutritional value of its food.

The introduction of digital ordering and delivery services also helped to improve the customer experience and create a more positive perception of the brand. Overall, the changes implemented by McDonald’s helped to strengthen the company’s brand and improve its reputation in the market.

Final Words 

McDonald’s change management process provides an excellent case study for other companies looking to implement significant changes to remain competitive and adapt to changing consumer preferences. By following a comprehensive change management strategy that involves employee engagement, effective communication, and a commitment to innovation and continuous improvement, companies can successfully implement changes that drive growth, improve profitability, and strengthen their competitive position in the market.

About The Author

Tahir Abbas

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Family of New Jersey woman last seen in 2010 prepares for funeral after remains found in river

A New Jersey family is celebrating and thanking a nonprofit that found human remains believed to belong to their mother who disappeared nearly 14 years ago.

Bernadine Gunner , 52, was reported missing on July 10, 2010. She was last seen in Camden, New Jersey, according to a report from the Camden Police Department. 

According to the Cherry Hill Courier-Post , part of the USA TODAY network, Gunner is on a missing persons list maintained by New Jersey State Police.

On Thursday, three vehicles were found submerged in the Cooper River in New Jersey. On the driver’s side of one of the vehicles were human remains, the Camden County Prosecutor’s Office said in a news release.

 "The remains are not positively identified yet," a spokesperson for the Camden County Prosecutor's Office told USA TODAY Wednesday morning, adding that they are waiting for DNA testing results.

But in a Facebook post on Saturday, Gunner’s daughter, Julia Young, credited Oregon-based nonprofit United Search Corps with finding her late mother.

Doug Bishop, founder of the nonprofit, told USA TODAY Wednesday morning that a supporter reached out to the group sometime over the past year to ask for help finding Gunner.

Team used SONAR technology to find human remains

The team started in the river due to its proximity to Gunner's home, Bishop told USA TODAY.

“This particular area is obviously the closest body of water to where Bernadine lived, so it made sense to start there,” Bishop told USA TODAY Wednesday morning.

He said his nonprofit has been speaking to authorities every step of the way and the medical examiner's office is still investigating the remains that were found.

Bishop couldn’t say if the river had been searched previously for Gunner’s remains but said the technology his team uses wasn’t available back in 2010. The team uses advanced SONAR systems that give the team readings of what’s underneath water.

“A lot of times, it’s used for vessel navigation and also … fishermen use it to see fish,” he said.

Bishop said it was an honor to help Gunner’s family find answers.

“They were extremely overwhelmed with really simply knowing what happened to their mom,” he said. “The most critical element of a tragedy of this magnitude is answers.”

Late mother was having a difficult time when she went missing

Gunner told her family at the time that she was going to harm herself because she was struggling to find a job, the Camden Police Department reported.

Now that Gunner has been found, her family can bury her properly, her daughter said in her Facebook post Saturday.

“We have closure,” her daughter wrote. “Thank you EVERYONE for the continuous prayers and support.”

Gunner’s daughter also questioned the initial Camden County Police response and noted that it took Bishop's team "to come here and dive into that water and discover my mom.”

Police did not respond to requests for comment on the family’s remarks.

Prosecutors said in addition to the United Search Corps, agencies that helped make the discovery include the Federal Bureau of Investigation, the Camden County Police Department and more.

Investigators asked anyone with information on Gunner's case to call Detective Ryan Durham of the Camden County Prosecutor’s Office Major Crimes Unit at (856)  225-5127 or Detective Ryan Hurley of the Pennsauken Police Department at (609) 922-9023.

Bishop, founder of United Search Corps, said he started his organization just over a year ago and he has helped solve dozens of cold cases. His organization couldn’t succeed without supporters and donors, he said. 

“What allows us to even be able to do this is community support,” he said. “Those simple donations that people make create these kinds of results and it's very special when people can contribute something and then we see results of this magnitude. It's very rare.”

To donate, visit www.unitedsearchcorps.org/donate .

Saleen Martin is a reporter on USA TODAY's NOW team. She is from Norfolk, Virginia – the 757. Follow her on Twitter at @SaleenMartin or email her at [email protected] .

In the tech world and beyond, new 5G applications are being discovered every day. From driverless cars to smarter cities, farms, and even shopping experiences, the latest standard in wireless networks is poised to transform the way we interact with information, devices and each other. What better time to take a closer look at how humans are putting 5G to use to transform their world.

What is 5G?

5G (fifth-generation mobile technology  is the newest standard for cellular networks. Like its predecessors, 3G, 4G and 4G LTE, 5G technology uses radio waves for data transmission. However, due to significant improvements in latency, throughput and bandwidth, 5G is capable of faster download and upload speeds than previous networks.

Since its release in 2019, 5G broadband technology has been hailed as a breakthrough technology with significant implications for both consumers and businesses. Primarily, this is due to its ability to handle large volumes of data that is generated by complex devices that use its networks.

As mobile technology has expanded over the years, the number of data users generate every day has increased exponentially. Currently, other transformational technologies like  artificial intelligence (AI),  the  Internet of Things (IoT ) and  machine learning (ML)  require faster speeds to function than 3G and 4G networks offer. Enter 5G, with its lightning-fast data transfer capabilities that allow newer technologies to function in the way they were designed to.

Here are some of the biggest differences between 5G and previous wireless networks.

• Physical footprint : The transmitters that are used in 5G technology are smaller than in predecessors’ networks, allowing for discrete placement in out-of-the-way places. Furthermore, “cells”—geographical areas that all wireless networks require for connectivity—in 5G networks are smaller and require less power to run than in previous generations.
• Error rates : 5G’s adaptive Modulation and Coding Scheme (MCS), a schematic that wifi devices use to transmit data, is more powerful than ones in 3G and 4G networks. This makes 5G’s Block Error Rate (BER)—a metric of error frequency—much lower. 
• Bandwidth : By using a broader spectrum of radio frequencies than previous wireless networks, 5G networks can transmit on a wider range of bandwidths. This increases the number of devices that they can support at any given time.
• Lower latency : 5G’s low  latency , a measurement of the time it takes data to travel from one location to another, is a significant upgrade over previous generations. This means that routine activities like downloading a file or working in the cloud is going to be faster with a 5G connection than a connection on a different network.

Like all wireless networks, 5G networks are separated into geographical areas that are known as cells. Within each cell, wireless devices—such as smartphones, PCs, and IoT devices—connect to the internet via radio waves that are transmitted between an antenna and a base station. The technology that underpins 5G is essentially the same as in 3G and 4G networks. But due to its lower latency, 5G networks are capable of delivering faster download speeds—in some cases as high as 10 gigabits per second (Gbps).

As more and more devices are built for 5G speeds, demand for 5G connectivity is growing. Today, many popular Internet Service Providers (ISPs), such as Verizon, Google and AT&T, offer 5G networks to homes and businesses. According to Statista,  more than 200 million homes  and businesses have already purchased it with that number expected to at least double by 2028 (link resides outside ibm.com).

Let’s take a look at three areas of technological improvement that have made 5G so unique.

New telecom specifications

The 5G NR (New Radio) standard for cellular networks defines a new radio access technology (RAT) specification for all 5G mobile networks. The 5G rollout began in 2018 with a global initiative known as the 3rd Generation Partnership Project (3FPP). The initiative defined a new set of standards to steer the design of devices and applications for use on 5G networks.

The initiative was a success, and 5G networks grew swiftly in the ensuing years. Today, 45% of networks worldwide are 5G compatible, with that number forecasted to rise to 85% by the end of the decade according to  a recent report by Ericsson  (link resides outside ibm.com).

Independent virtual networks (network slicing)

On 5G networks, network operators can offer multiple independent virtual networks (in addition to public ones) on the same infrastructure. Unlike previous wireless networks, this new capability allows users to do more things remotely with greater security than ever before. For example, on a 5G network, enterprises can create use cases or business models and assign them their own independent virtual network. This dramatically improves the user experience for their employees by adding greater customizability and security.

Private networks

In addition to network slicing, creating a 5G private network can also enhance personalization and security features over those available on previous generations of wireless networks. Global businesses seeking more control and mobility for their employees increasingly turn to private 5G network architectures rather than public networks they’ve used in the past.

Now that we better understand how 5G technology works, let’s take a closer look at some of the exciting applications it’s enabling.

Autonomous vehicles

From taxi cabs to drones and beyond, 5G technology underpins most of the next-generation capabilities in autonomous vehicles. Until the 5G cellular standard came along, fully autonomous vehicles were a bit of a pipe dream due to the data transmission limitations of 3G and 4G technology. Now, 5G’s lightning-fast connection speeds have made transport systems for cars, trains and more, faster than previous generations, transforming the way systems and devices connect, communicate and collaborate.

Smart factories

5G, along with AI and ML, is poised to help factories become not only smarter but more automated, efficient, and resilient. Today, many mundane but necessary tasks that are associated with equipment repair and optimization are being turned over to machines thanks to 5G connectivity paired with AI and ML capabilities. This is one area where 5G is expected to be highly disruptive, impacting everything from fuel economy to the design of equipment lifecycles and how goods arrive at our homes.

For example, on a busy factory floor, drones and cameras that are connected to smart devices that use the IoT can help locate and transport something more efficiently than in the past and prevent theft. Not only is this better for the environment and consumers, but it also frees up employees to dedicate their time and energy to tasks that are more suited to their skill sets.

Smart cities

The idea of a hyper-connected urban environment that uses 5G network speeds to spur innovation in areas like law enforcement, waste disposal and disaster mitigation is fast becoming a reality. Some cities already use 5G-enabled sensors to track traffic patterns in real time and adjust signals, helping guide the flow of traffic, minimize congestion, and improve air quality.

In another example, 5G power grids monitor supply and demand across heavily populated areas and deploy AI and ML applications to “learn” what times energy is in high or low demand. This process has been shown to significantly impact energy conservation and waste, potentially reducing carbon emissions and helping cities reach sustainability goals.

Smart healthcare

Hospitals, doctors, and the healthcare industry as a whole already benefit from the speed and reliability of 5G networks every day. One example is the area of remote surgery that uses robotics and a high-definition live stream that is connected to the internet via a 5G network. Another is the field of mobile health, where 5G gives medical workers in the field quick access to patient data and medical history. This enables them to make smarter decisions, faster, and potentially save lives.

Lastly, as we saw during the pandemic, contact tracing and the mapping of outbreaks are critical to keeping populations safe. 5G’s ability to deliver of volumes of data swiftly and securely allows experts to make more informed decisions that have ramifications for everyone.

5G paired with new technological capabilities won’t just result in the automation of employee tasks, it will dramatically improve them and the overall  employee experience . Take virtual reality (VR) and augmented reality (AR), for example. VR (digital environments that shut out the real world) and AR (digital content that augments the real world) are already used by stockroom employees, transportation drivers and many others. These employees rely on wearables that are connected to a 5G network capable of high-speed data transfer rates that improve several key capabilities, including the following:

• Live views : 5G connectivity provides live, real-time views of equipment, events, and even people. One way in which this feature is being used in professional sports is to allow broadcasters to remotely call a sporting event from outside the stadium where the event is taking place.
• Digital overlays : IoT applications in a warehouse or industrial setting allow workers that are equipped with smart glasses (or even just a smartphone) to obtain real-time insights from an application. This includes repair instructions or the name and location of a spare part.
• Drone inspections : Right now, one of the leading causes of employee injury is inspection of equipment or project sites in remote and potentially dangerous areas. Drones, which are connected via 5G networks, can safely monitor equipment and project sites and even take readings from hard-to-reach gauges.

Edge computing , a computing framework that allows computations to be done closer to data sources, is fast becoming the standard for enterprises. According to  this Gartner white paper  (link resides outside ibm.com), by 2025, 75% of enterprise data will be processed at the edge (compared to only 10% today). This shift saves businesses time and money and enables better control over large volumes of data. It would be impossible without the new speed standards that are generated by 5G technology. 

Ultra-reliable edge computing and 5G enable the enterprise to achieve faster transmission speeds, increased control and greater security over massive volumes of data. Together, these twin technologies will help reduce latency while increasing speed, reliability and bandwidth, resulting in faster, more comprehensive data analysis and insights for businesses everywhere.

5G solutions with IBM Cloud Satellite  

5G presents significant opportunities for the enterprise, but first, you need a platform that can handle its speed. IBM Cloud Satellite® lets you deploy and run apps consistently across on-premises, edge computing and public cloud environments on a 5G network. And it’s all enabled by secure and auditable communications within the IBM Cloud®.

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Development of hydrological based physical model for nutrients transport simulation: case study of Makkah city, Saudi Arabia

• Original Paper
• Published: 26 May 2024

Cite this article

• A. M. Al-Areeq   ORCID: orcid.org/0000-0003-0618-8190 1 , 2 ,
• M. A. Al-Zahrani 2 ,
• S. Chowdhury 2 , 3 &
• H. O. Sharif 4  

Urban flooding poses significant risks to water quality and public health due to inadequate drainage systems, leading to the dispersion of harmful pollutants in the neighborhoods. This study investigates the transport of nutrients during the flood events in Makkah (Saudi Arabia), underlining the city’s vulnerability to such environmental challenges as a pressing concern. The research aims to quantify the impact of non-point source (NPS) pollutant loads resulting from urban floods, emphasizing the need for improved flood control and pollution mitigation strategies. Employing the Gridded Surface/Subsurface Hydrologic Analysis (GSSHA) model, this research simulates the transport and fate of nutrients for variable percentages of manhole overflow (5%, 10%, 15%, and 20%), addressing the challenge of direct measurement and data scarcity in urban environments. This approach allows for the examination of NPS pollution from sewer systems, considering the mixing of contaminants with floodwaters on urban surfaces. To analyze the effects of rainfall intensity on the temporal and spatial distribution of nutrients, the methodology includes the simulation of storm events with 2- and 10-year return periods. This study facilitates the prediction of contaminants’ dispersion, accumulation sites, and potential impacts on groundwater quality, highlighting the model’s utility in urban flood risk management. The findings indicate that while nutrient concentrations from storms with less than a 10-year return period remain within acceptable limits, the infiltration and subsequent potential for groundwater contamination during more severe events pose significant environmental risks. The study reveals critical insights into the dynamics of contaminant distribution and accumulation, especially during the less frequent but more intense flood events. In essence, this paper highlights how the GSSHA model can simulate the intricate relationships between urban drainage systems and floodwaters, providing a strong framework for evaluating the risks of pollution caused by flooding when specific data is lacking. The study presents an innovative approach to managing urban water quality, which aids in the development of efficient flood response plans and pollution control measures. By highlighting the importance of integrating hydrological models in urban planning, the study provides valuable information for enhancing resilience against flood-related public health and environmental hazards.

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The authors would like to acknowledge the support provided by King Fahd University of Petroleum & Minerals (KFUPM) to complete this study.

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Al-Areeq, A.M., Al-Zahrani, M.A., Chowdhury, S. et al. Development of hydrological based physical model for nutrients transport simulation: case study of Makkah city, Saudi Arabia. Int. J. Environ. Sci. Technol. (2024). https://doi.org/10.1007/s13762-024-05745-y

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Beach erosion will make Southern California coastal living five times more expensive by 2050, study predicts

by Nina Raffio, University of Southern California

Rising sea levels and urban development are accelerating coastal erosion at an alarming rate in Southern California with significant ripple effects on the region's economy, a USC study reveals.

The study , published in Communications Earth & Environment , predicts that Southern California's coastal living costs will surge fivefold by 2050 as a direct result of beach erosion. This erosion will require more frequent and costly beach nourishment projects to maintain the state's treasured shorelines, consequently driving up the cost of living along the coast.

"Our study presents compelling evidence of the rapid deterioration of Southern California's coastal landscapes," said Essam Heggy, a geoscientist in the Ming Hsieh Department of Electrical and Computer Engineering/Electrophysics at the USC Viterbi School of Engineering and the study's corresponding author.

"The challenges facing Southern California mirror a growing threat shared by coastal communities worldwide. The environmental and economic implications of coastal erosion reach far beyond California's shores and demand interdisciplinary, global solutions," he said.

Coastal erosion: Cost of living sure to surge as sandy beaches disappear

To predict future changes along California's sandy coastlines, the researchers focused on the Gulf of Santa Catalina, which stretches over 150 miles from the Palos Verdes Peninsula in Los Angeles County to the northern tip of Baja California in Mexico.

They used a combination of historical and recent satellite images as well as advanced algorithms to analyze coastline movement and predict future erosion based on different trends and environmental factors.

The study predicts a tripling of erosion rates by 2050, increasing from an average of 1.45 meters per year to 3.18 meters by 2100. Consequently, the annual sand requirement for beach nourishment could triple by 2050, with costs rising fivefold due to the global increase in sand prices. This will exacerbate economic and logistical pressures on coastal communities.

Beach nourishment is adding sand to an eroded beach to rebuild it and create a wider barrier against waves and storms.

"Our investigation suggests that coastal problems start inland due to the rapid growth of cities along the coast, which compromise inland sediment replenishment of sandy beaches ," said Heggy, whose research focuses on understanding water evolution in Earth's arid environments.

"As our beaches shrink, the cost of maintaining them will rise. Finding innovative solutions is key to securing a sustainable future for our shores and local economies," he said.

Coastal erosion in California: A case study for a global problem

Coastal cities in Southern California and those in North Africa bordering the Mediterranean Sea face a common challenge: a semi-arid climate year-round coupled with the growing threats of rising sea levels and eroding shorelines.

A significant portion of Earth's landmass, roughly 41%, falls under arid or semi-arid classifications, and these areas support over a third of the global population.

To understand this global challenge, the researchers focused on two specific locations: Corona del Mar in Orange County, Calif.—an example of the typical Southern California coastline—and Hammamet North Beach in Tunisia. Both are densely populated and share similar climates, prone to increasing droughts, flash floods and unpredictable rainfall patterns. These characteristics mirror the challenges faced by countless coastal communities worldwide.

The findings showed that the average rate of shoreline retreat in these areas varies. In Southern California, beaches are receding between 0.75 and 1.24 meters per year. In Hammamet North Beach, the retreat rate ranges from 0.21 to about 4.49 meters annually.

"While beach nourishment can temporarily combat erosion, however, it presents significant challenges for developing countries," said Oula Amrouni, a sedimentologist at the National Institute of Marine Sciences and Technologies at the University of Carthage, Tunis, Tunisia, and one of the study's co-authors.

"The high cost of acquiring the right sand, with the specific grain size, quality and composition, and the technical complexity of extracting and laying it are major hurdles. Additionally, worsening erosion in previously stable areas compels more frequent nourishment projects, straining already limited budgets and leading to unplanned expenditures for many communities."

Journal information: Communications Earth & Environment

Provided by University of Southern California

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