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McDonald’s China bets on digitized stores

By Ding Yining | December 9, 2016, Friday | Online Edition

MCDONALD’S China said today it will upgrade the digitization in 40 percent of its existing stores such as self-service ordering machines for customized burger menu, digital menu board and dual point system.

In six months’ time, the fast food giant will finish hardware upgrade in around 1,000 existing stores in 13 cities in China’s mainland by offering digital ordering and online to offline dining experience to attract and retain consumers.

Today, McDonald’s Shenzhen Guanghua restaurant, which is its first outlet in China’s mainland, officially completed the upgrade towards a “Future 2.0” concept store.

“It’s important that we put focus not only on digitalization and more efficient ordering process and we’re still dedicated to improving the dining experience in our restaurants, said Phyllis Cheung, chief executive officer of McDonald’s China. “We will continue working to meet consumers’ dining habits to increase the number of visits to our physical stores.”

Currently, cashless payment through mobile devices account for 40 percent of McDonald’s total transaction volume by December 2016.

Next year the firm hopes to add 200 to 250 new stores in China, most of which located in lower tier cities and it will also unveil a separate smartphone application for food ordering and delivery services.

Foreign fast-food chain are eager to appeal to a younger generation of Chinese consumers that are seeking swift ordering procedure through mobile devices as well as higher food quality and a more modern menu.

Yum China’s KFC and PizzaHut are offering similar ordering machines and upgraded menu to embrace tech-savvy consumers.

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