To prove the value of personalized services, McDonald's announced plans to acquire Israel-based technology startup Dynamic Yield, which uses data to provide personalized services to customers. McDonald's will buy the technology startup for more than $300 million, according to people familiar with the matter.
The acquisition will allow the traditional fast food chain to introduce advanced technology into its business areas. It will take the lead in introducing technology in the area of McDonald's auto restaurant. McDonald's tested the technology at a Miami location, Wired magazine reported. The company's algorithm took into account real-world factors such as weather and transportation, and introduced personalized menus.
Many restaurants have begun to use new technology to collect large amounts of consumer data. The actual application of these data is a big business, and McDonald's acquisition of Dynamic Field is to seize this opportunity.
This traditional catering company is not afraid to use technology. From partnering with Uber Eats as a distribution partner to investing in the future store experience full of touch screens, it has proven its interest in learning and using advanced technologies.
Earlier this month, McDonald's Chief Financial Officer Kevin Ozan reiterated the need to continue investing in technological innovation to sustain growth.
This is McDonald's biggest deal in 20 years. McDonald's will continue its efforts to upgrade and transform its American stores to meet the requirements of the digital age.
The acquisition is McDonald's latest move to integrate more technology into its chain stores.
In 2019 alone, the company plans to spend nearly $1 billion Upgrading about 2,000 American stores. These upgrading measures, such as adding self-service kiosks and digital menus, aim to promote sales by increasing customer convenience. However, some franchisers complain that the expensive project has no short-term return and will affect short-term profits.
Other investments, such as building McDonald's mobile apps, will help the company get more consumer data, thereby enabling it to launch more personalized services.
After the transaction is completed, Dynamic Yield will remain an independent company and will continue to cooperate with customers outside its new owner.