A Data Mine With That Shake? McDonalds to Eliminate Human Cashiers, Install Touchscreen Terminals Taking Swipe Cards

The notion of ordering pre-designed meals from a touchscreen is not that revolutionary. Fast food cashiers have been using them for years. Simply turning the terminals around so customers can use them is an evolutionary development.

What is most interesting about this strategic change, aimed, in part, at investors, is that McDonalds is quite explicit about admitting that capturing customer data is an important aspect of the strategy. With food prices rising and the Law of Big Numbers limiting growth at the restaurant chain, selling through other channels makes sense. Walmart has used its data mining and management capabilities to great advantage. McDonalds has now signaled it intends to do the same.

Louise Lucas reports in the Financial Times:

"McDonald’s is to change the way customers order its meals in Europe, partly replacing cashiers and the use of banknotes at its 7,000 fast-food restaurants in the region with touchscreen terminals and swipe cards.

“Ordering food has not changed for 30 or 40 years,” said Steve Easterbrook, president of McDonald’s Europe, in an interview with the Financial Times.

The move is part of the fast-food chain’s efforts to woo cash-strapped customers by making its restaurants more convenient and convivial. It is refurbishing stores, and introducing longer opening hours and new menus.

At a time when many retail and consumer companies are racking up sluggish or even shrinking sales in Europe, McDonald’s like-for-like sales rose 5.7 per cent year-on-year in the first quarter – the highest growth out of its three main geographic regions.

Mr Easterbrook said that the changes would make life easier for consumers as well as improve efficiency, with average transactions three to four seconds shorter for each customer. McDonald’s European stores serve 2m customers a day.

Weiky Filho, a student enjoying a burger at McDonald’s in Wimbledon, London, was in favour of the changes. “You don’t need to communicate with staff and it would be much quicker,” he said.

But Joe Surkitz, 21, was less convinced. “I’m looking for work and if there’s more machines doing jobs I’ll find it harder. Plus you won’t get service with a smile.”

Mr Easterbrook said that the new technology would allow McDonald’s to harness more information about customers’ ordering habits. Supermarkets and other retailers have huge databases of information on customers’ shopping habits, which they gather from loyalty cards.

Diners at the 1,200 McDonald’s outlets in the UK will shortly be able to pay by simply swiping a Visa debit card, just as London’s commuters can swipe their Oyster cards at train stations.