McDonald's digital drive-thrus will start making personalized recommendations

Credit Luke Sharrett  Bloomberg

Credit Luke Sharrett Bloomberg

The world's biggest restaurant chain is spending more than US$300 million on Dynamic Yield Ltd, according to a person familiar with the matter.

McDonald's customers who interact with digital outdoor/indoor menus and kiosks with be given a personalized menu, based on time of day, weather, how busy the restaurant is, and popular menu items.

The Golden Arches revealed Monday its biggest acquisition in more than 20 years, acquiring privately held tech platform Dynamic Yield. He mentioned further that this acquisition would provide Mac Donald's customers more convenience on their own terms. This is the largest acquisition of the fast-food company and showcases the company's desires to use technology for speed growth in the ever-competitive restaurant industry, as per the daily.

Such comments kicked off countless articles relating to the rise of automation, and indeed, McDonalds is well-known as being one of the biggest employers in the US and beyond. Dynamic Yield has 180 employees in six locations worldwide including Tel Aviv and its corporate headquarters in NY, with most employees based in Israel.

Based on an order's selections, the technology also can suggest and display additional items, much like Amazon and other retailers' highlight what other customers purchased. It has also devised to integrate this technology with the other products, self-serve kiosks and mobile app. It said it tested the technology in several US restaurants in 2018 and would roll it out in drive-thrus in the United States in 2019, expanding to top global markets after that.

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McDonald's tested Dynamic Yield's technology in the U.S. in 2018, and will more widely introduce it this year for drive-through menus once the deal closes.

Dynamic Yield co-founder and CEO Liad Agmon said in a statement: "We started Dynamic Yield seven years ago with the premise that customer-centric brands must make personalization a core activity".

McDonald's wants to be able to anticipate the answer to that question by investing in artificial intelligence.

Drive-thru wait times have increased annually for about the last five years, CEO Steve Easterbrook said during the company's last earnings call, and the company has been looking at ways to halt that trend. Remodeled restaurants saw sales lifts of 4 to 6 percent in global markets, as Ozan told McKinsey in a January interview, but the sales have been slower to rise in the U.S. Dynamic Yield intends to keep its brand and its current clients, and contract new clients, Agmon told Calcalist in an interview Tuesday.

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