McDonald’s is planning to open 10,000 new stores globally by 2027, in what the world’s largest fast food chain says would be the “fastest period of growth” in the brand’s history, while also announcing a partnership with Google to automate restaurants using artificial intelligence.
Key Takeaways
- McDonald’s says it expects nearly 2% growth in system-wide sales from its new restaurants, according to a press release.
- A McDonald’s spokesperson told CBS the United States would see 900 new restaurants, while the rest would open internationally (Forbes has also reached out to McDonald’s for comment).
- The company also plans to revamp parts of its menu, rolling out a “Best Burger Initiative”— an effort to improve the quality of its burgers—to nearly all of its markets by 2026, and will invest more in its growing chicken business by expanding its McCrispy chicken sandwich to all markets by 2025.
- The chain says it’s hoping to use generative AI to accelerate its venture into automation at its locations and to help employees find quicker solutions to problems.
Big Number
50,000. That’s how many McDonald’s restaurants will be in operation by 2027, if all goes according to plan.
Key Background
The announcement came on McDonald’s Investor Day on Wednesday. According to the Associated Press, Manu Steijaert, McDonald’s chief customer officer, said it took the company 33 years to open its first 10,000 restaurants, and then 18 years to grow from 30,000 to 40,000. Steijaert also said that the company’s explosive growth in delivery requests is helping drive demand for new restaurants. McDonald’s is also planning to further expand its delivery capabilities through its app, where the company predicts 30% of its deliveries will originate from by 2027. As for McDonald’s new investment in AI, it’s the latest sign of the company’s growing interest in automation. In December, the company unveiled its first-ever fully-automated test store, where orders were placed at a kiosk and delivered through a conveyor belt. That venture was met with mixed reactions on social media, with some raising concern over whether the technology would impact human jobs. For its part, McDonald’s has claimed that the automotive services would help its human kitchen staff serve customers more efficiently. Other fast-food restaurants are similarly investing in artificial intelligence—Wendy’s tested an AI chatbot that helped customers through their drive-thru orders earlier this year.
Tangent
Wednesday’s announcement didn’t include any new details on the restaurant’s secretive new project, CosMc, a McDonald’s spinoff restaurant expected to open a limited number of locations in early 2024. While little has been announced about the new concept’s menu, it’s expected to focus on specialty drinks and could seek to compete with other beverage-focused chains like Starbucks.
This article was first published on forbes.com and all figures are in USD.
