McDonald’s is upgrading its 43,000 restaurants with new technology, including internet-connected kitchen equipment and artificial intelligence-enabled drive-throughs, aimed at enhancing the experiences of customers and workers, according to The Wall Street Journal. The initiative comes in response to operational challenges, such as broken machines and incorrect orders, according to Brian Rice, the company’s chief information officer.
McDonald’s to enhance 43,000 restaurants with AI and edge computing
Rice noted, “Our restaurants, frankly, can be very stressful. We have customers at the counter, we have customers at our drive-through, couriers coming in for delivery, delivery at curbside. That’s a lot to deal with for our crew.” He emphasized that technological solutions would help alleviate this stress.
The transition to advanced technology is timely, as McDonald’s faced sluggish U.S. sales in January amid a broader downturn in the fast-food sector. The company indicated that low-income diners and families are particularly feeling the economic strain. McDonald’s aims to increase its loyalty customers from 175 million to 250 million by 2027 with a better tech-enabled experience. To support this goal, McDonald’s partnered with Google Cloud in late 2023 to deploy edge computing, enabling restaurants to process and analyze data on-site more efficiently and cost-effectively compared to traditional cloud solutions, particularly in remote areas, according to Rice.
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Edge computing will facilitate functionalities such as predicting kitchen equipment failures, including fryers and the McFlurry ice cream machines. Suppliers have begun installing sensors on this equipment, providing franchisees with real-time operational insights. AI will analyze this data to detect early maintenance issues. McDonald’s is also exploring computer vision technology in store-mounted cameras to check order accuracy prior to customer delivery.
Rice stated, “If we can proactively address those issues before they occur, that’s going to mean smoother operations in the future.” The rollout of edge computing commenced in some U.S. restaurants in 2024, with plans for broader implementation throughout the year. McDonald’s did not disclose how many restaurants currently have this edge cloud connectivity or the timeline for completion.
This edge computing capability will also enhance voice AI at drive-throughs, with ongoing experimentation in voice-activated systems and robotic deep fryers since 2019. McDonald’s ended its partnership with International Business Machines in 2024 after testing automated order-taking at the drive-through.
Rice mentioned plans to develop a “generative AI virtual manager” to assist restaurant managers with administrative duties such as shift scheduling. This concept has already been investigated by other fast-food entities, including Yum Brands’ Pizza Hut and Taco Bell.
As a frontrunner in the adoption of edge computing in the fast-food industry, McDonald’s is not alone; the technology is anticipated to be valuable across various sectors with dispersed physical sites, including healthcare and manufacturing. However, challenges such as implementation costs and uniform technology deployment across franchises and corporate locations remain, as noted by Sandeep Unni, a retail analyst at Gartner. McDonald’s refrained from disclosing the specifics of its technology investments.
Compared to its quick-service restaurant peers, McDonald’s has made considerable investments in new digital technologies. This strategy, combined with the substantial customer data it has accumulated, positions the fast-food giant favorably to enhance customer loyalty.
AI will assist McDonald’s in customizing promotions and offers by analyzing customer data and linking it with external factors such as weather conditions, as stated by Rice. “A customer who we know loves our sweet treats could get an offer through the app for a McFlurry on a hot summer day,” he remarked.
Featured image credit: Eshak Angell/Unsplash
