McD’s Channel Blurring with All-You-Can Eat Fries

By Brian Harris

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Let’s all take a moment to consider two facts about McDonald’s:

  1. Seventy percent of business comes through the drive-thru window. (Bloomberg, Nov. 15)
  2. A franchisee in Missouri is about to test a McDonald’s sit-down restaurant prototype. (St. Joseph Press-News)

Both are true—and truly opposite!  What gives?

It’s not exactly news that channel blurring has been on the rise for the past few years. Dubbed the “McDonald’s of the Future,” the restaurant will combine everything customers enjoy about modern, convenient dining. Earthy tones will evoke the feeling of a fast-casual dining atmosphere (think Panera) complete with couches, arm chairs and self-order kiosks. Touchscreen menus are not a new concept either. In another show of channel blurring with convenience stores, McDonald’s has expanded its “Create Your Taste” concept, featuring self-ordering kiosks, across the country.

While the minimum wage debate continues, self-ordering kiosks are not designed to replace employees. Rather, they are designed to enhance customer service by allowing patrons to personalize their orders, from burgers and sandwiches to desserts. But the most “restaurant-y” features of them all in the McDonald’s of the Future? All-you-can-eat french fries and tableside service!

Convenience stores have worked hard to shake their old “cokes and smokes” image. It seems that McDonald’s is also trying to reinvent itself from “fry and fly.” Indeed, the futuristic McDonald’s restaurant will encourage customers to come in and take their time. Kiosks can actually slow down the ordering process as customers select more fresh ingredients, customers can linger with a McCafé in the lounge area, and kids won’t want to leave the revamped play area, complete with digital play and tabletop video games. A separate party room with a dedicated staff will allow families to have birthdays and special occasions.

The Importance of the Other 30 Percent

Let’s revisit the first fact we shared about McDonald’s. While the 70% of customers visiting the drive-thru are crucial to success, the company is very wisely not overlooking the other 30% of its business.

Customized menu options tend to have higher prices, so the opportunity is to upsell on menu items. It’s also about brand-building and creating more loyalty with a better restaurant environment. When the foot traffic segment increases in value, the business benefits as a whole.

That’s an interesting proposition, whether you operate in the convenience store or QSR space. It’s smart to take the strongest area of your business and strive to become the best at it. But it’s just as wise to look at other areas where you can better serve your core customer. In this case, it seems McDonald’s is taking steps to appeal to Millennial parents, the upcoming generation of big spenders.

Testing these concepts at the store level will only broaden McDonald’s horizons. As a brand, these are the kinds of insights they’ll need if the restaurant of the future is to become a reality nationwide.

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