McDonald’s embarks on tech overhaul with AI-driven tools, smart kitchens

GLOBAL – According to The Wall Street Journal, McDonald’s is overhauling technology across its 43,000 restaurants by deploying internet-connected kitchen equipment and AI-driven tools to address issues such as equipment malfunctions and order inaccuracies, as explained by CIO Brian Rice.

McDonald’s is intensifying efforts to expand its customer base, particularly among low-income diners and families, by enhancing the overall dining experience through advanced technology.

The company has set an ambitious goal of increasing its loyalty programme membership from 175 million to 250 million by 2027.

In a move to support this strategy, McDonald’s partnered with Google Cloud in late 2023 to implement edge computing solutions that process data on-site, thereby improving operational efficiency, especially in locations with limited cloud connectivity.

The deployment of edge computing enables predictive maintenance for kitchen equipment and allows suppliers to install sensors on machinery, providing franchisees with real-time operational insights.

Moreover, McDonald’s is exploring the use of computer vision, a form of artificial intelligence similar to facial recognition technology, to enhance order accuracy before customer handoffs.

One executive, referred to as Rice, indicated that proactively addressing potential issues with these technologies would lead to smoother operations in the future.

The initial rollout of edge computing began in select U.S. outlets during 2024, with further expansion planned throughout 2025 to assist restaurant managers in streamlining in-store operations.

While the exact number of restaurants currently equipped with this technology and the full timeline for its implementation remain undisclosed, the company anticipates that leveraging edge computing will also improve voice AI capabilities at the drive-through.

This is being pursued in collaboration with Google’s cloud computing division.

McDonald’s has a history of embracing technological innovations; it has been trialing voice-activated drive-through systems and robotic fryers since 2019 and concluded a partnership with International Business Machines in 2024 to test automated order-taking solutions.

Additionally, the chain aims to develop a “generative AI virtual manager” to handle routine administrative tasks such as shift scheduling.

These technological advancements come on the back of McDonald’s Q4 2024 financial results, where net income reached US$2.02 billion, a 1% decrease on a constant currency basis from the previous year.

Total revenues for the quarter were US$6.38 billion, while operating income increased 2% YoY to US$2.87 billion.

Global comparable sales in Q4 grew by 0.4%, with mixed performance across regions, and the international developmental licensed markets segment advanced 4.1%.

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