Published: Sun, March 05, 2017
Global | By Maureen Mccoy

McDonald's has a plan to win back customers

McDonald's has a plan to win back customers

And, McDonald's also is going to expand its efforts with delivery companies, although 85 percent of its customers live within three miles of one of its restaurants.

Many of McDonald's overseas restaurants already offer delivery, especially in Asia and the Middle East, and the company generated nearly $1 billion in sales from the channel a year ago.

Announcing its global growth plan during the Investor Day event in downtown Chicago, the fast food giant hinted that it might soon start delivering Big Macs and Happy Meals straight to the doorstep in its five biggest markets, Evening Standard (via Business Insider) reported. McDonald's will offer table service to some customers who order digitally.

And coffee, the beverage that has fueled the success of other global chains like Starbucks, is also being eyed as an offering that can turn occasional visitors into repeat customers. McDonald's will also finally introduce delivery, giving in to a long held demand from patrons who have drifted to rivals in recent years.

It said: "One of the most significant disruptions in the restaurant business today is the rapid increase in delivery".

By using the mobile order and pay, customers will be able to place their order on the app and pick up their food via curbside delivery or go through the drive thru. Delivering food while it's still hot (or luke warm, let's be real it's Maccas we're talking about) will not be too much of a problem.

The timing means McDonald's is far behind many of its biggest competitors, but CEO Steve Easterbrook said Wednesday he'd rather be late and get it right.

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McDonald's already offers a food delivery service in China, South Korea and Singapore.

'Coupled with the explosive growth in third-party delivery companies, the landscape has created an exceptional opportunity for growth.

The chain rolled out delivery services in China in 2008, and delivery sales have since tripled.

The mobile app and curbside service, which will be introduced at the chain's US restaurants this year, could on their own help improve drive-thru times, particularly during busy periods.

Mobile order and pay will launch in 20,000 restaurants around the world by the end of 2017, the company said.

Shares of McDonald's closed up 1.1 percent at $129.05 after hitting a nine-month high of $129.99.

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