McDonald’s newest technological addition may help people to make it to work on time as the company continues to put the “fast” in fast food thanks to its customer service innovations.
Customers have long been frustrated that self-serve kiosks only take credit card payments meaning that those looking to pay with cash need to wait in line to order at the counter.
Origin of Kiosks
Customers were able to place orders and obtain Happy Meals faster than ever before when McDonald’s introduced its self-ordering kiosks in U.S. locations in 2015.
The benefits of not having to wait in line or be rushed by people behind you while you place an order were a boon for customers upon its introduction.
Cash Issues
The issue customers faced however was that the kiosks would only accept credit card payments which made its cash-paying customers keep ordering at the counter.
Cash-carrying customers were forced to join the queue and were deprived of the chance to speed up their ordering process, leaving many frustrated in their fast-food experience.
Economic Forecasts
Despite the fact that McDonald’s (MCD) is at the top of the fast food chain in America in view of sales, as per Technomic, the famous burger joint isn’t immune to financial vulnerability.
As per McDonald’s Q2 income report for 2024, the organization’s income was $6.5 billion, a 1% increase from the year earlier.
Downward Trends
On the other hand, while income may be on the rise other figures are on a downward trend, consolidated revenues were flat, and global comparable sales were down by 1%.
McDonald’s systemwide sales, which incorporate deals made through the McDonald’s app, delivery services, and kiosks, were likewise adversely impacted and diminished 1%.
Customer Relief
In a relief for people who don’t carry a credit card with them or refuse to get one, McDonald’s is now finally launching cash kiosks for customers.
These new cash kiosks will work the same way as the first credit card ones, but, customers can now utilize cash to pay for their orders.
Showing Select Menu Items
To guarantee this most recent expansion merits the weighty investment, McDonald’s will urge customers to utilize the kiosks by only showing select menu items on the screens behind the original counters.
Therefore, to see the whole menu, they need to order at the self-service kiosks or through the McDonald’s mobile app.
Rollout of New Kiosks
However, printed menus will be accessible only upon request for customers who like the in-person checkout line ordering experience.
Yet, this innovation won’t be accessible in every location. McDonald’s is only making cash kiosks mandatory in eateries with corporate ownership, making it discretionary for franchise restaurants, which make up 95% of all McDonald’s locations.
Ordering Efficiency
The cash kiosks’ goal is to enhance ordering efficiency by permitting customers to place and get orders faster, making queues shorter and the helping streamline the customer experience.
In-person employees are concerned that this latest tech innovation may threaten their job security even while it sounds like a great idea.
Threat to Jobs
The McDonald’s app, kiosks, and delivery orders account for more than 40% of all orders, according to the company’s Q3 2023 reports, and the cash kiosks aim to increase that percentage.
In any case, McDonald’s said the new tech expansion won’t bring about any labor force cuts since human workers are still needed to actually make the food and carry out orders to customers.
CEO Statement
Chairman and CEO Chris Kempczinski made a statement on the Q4 earnings report that highlighted the aims for growth in the company.
“We are confident that Accelerating the Arches is the right playbook for our business and as consumers are more discriminating with their spend, we are focused on the outstanding execution of delivering reliable, everyday value and accelerating strategic growth drivers…”
Employee Challenges
The concern for job security in the fast food sector has made strides in the past few years.
After employees were being fired with no just cause and facing difficulties with their expenses, the New York City Council approved a bill in 2020 that would protect fast food workers from being fired without a valid reason.
The newly formed Fast Food Council in California is similarly looking to shore up protections for fast-food workers.
