Wednesday, Dec 18, 2024

McDonald's opens US's first small-format location that's optimized for delivery and mobile orders

A McDonald's outside of Fort Worth, Texas, will test a new format focused on to-go and mobile orders.
  • McDonald's is testing a new restaurant design for to-go and delivery orders.
  • The location will have pickup shelves and a mobile order pickup drive-thru lane.
  • Chipotle, Panera, Taco Bell, and other chains have added similar updates.

McDonald's is experimenting with a new restaurant format aimed at take-out and delivery customers.

The test restaurant, outside of Fort Worth, Texas, is the first of its kind for McDonald's. It includes an order-ahead lane where customers can drive up and retrieve mobile orders from a conveyer belt. These customers will be able to skip the regular drive-thru line.

And the interior of the restaurant is designed to speedily serve up to-go orders. Customers can place orders on kiosks and pick them up on shelves. Delivery drivers will have dedicated parking spots and a separate room to pick up those orders.

"The technology in this restaurant not only allows us to serve our customers in new, innovative ways, it gives our restaurant team the ability to concentrate more on order speed and accuracy, which makes the experience more enjoyable for everyone," the test store's franchisee, Keith Vanecek, said in a statement.

Drive-thru and mobile orders are both critical to McDonald's business: About 25% of US sales are digital through the app, kiosk, or delivery orders, McDonald's says, and 70% of orders go through the drive-thru.

This test store brings McDonald's in line with fast-food competitors that have already implemented similar changes. Chipotle just opened its 500th Chipotlane, which operates like the order-ahead line in the McDonald's test store. Taco Bell has also opened Go Mobile restaurant formats with drive-thru lanes dedicated to mobile orders. And in June, Chick-fil-A announced a test run of an express drive-thru lane exclusively for mobile orders.

Pickup shelves for mobile orders also have become standard in much of the quick-service industry: Chipotle, Panera, and KFC have implemented pickup shelves, while other chains like Starbucks have similar dedicated areas for customers to grab mobile orders.

Chains have turned to these new formats because they tend to have lower costs due to smaller footprints and lower staff needs, making them potentially more profitable. Chipotlanes offer higher margins than a traditional Chipotle make-line and dining room, Chief Financial Officer Jack Hartung told investors last year. He said they typically have higher sales and operate more efficiently than the chain's traditional format. Panera Chief Brand & Concept Officer Eduardo Luz told Insider that these smaller store formats can be more economical, especially in areas with high real estate costs.

McDonald's test is limited for now to the one location in the Fort Worth suburb called White Settlement. But it's possible it will expand further if McDonald's follows the pattern of other fast food chains. For its part, McDonald's corporate said in a statement that it's "test and learn" with this location.

Do you have a story to share about a retail or restaurant chain? Email this reporter at [email protected].

Read the original article on Business Insider
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By: [email protected] (Mary Meisenzahl)
Title: McDonald's opens US's first small-format location that's optimized for delivery and mobile orders
Sourced From: www.businessinsider.com/mcdonalds-opens-first-new-concept-to-focus-on-delivery-mobile-orders-2022-12
Published Date: Fri, 02 Dec 2022 18:05:15 +0000

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