McDonald’s Corp, the world’s largest restaurant chain, acquired Dynamic Yield, based in New York and Tel Aviv, a leader in personalization and decision logic technology.
The transaction, valued at around $300 million, marks the biggest investment in 20 years for McDonald’s, since the Chipotle transaction in 1998.
McDonald’s will apply the newly purchased technology to provide a more personalized customer experience. The fast-food chain will leverage AI and Machine Learning, by varying outdoor digital Drive Thru menu displays to show food based on time of day, weather, current restaurant traffic, and trending menu items. The new technology can also instantly suggest and display additional items to a customer’s order based on their current selections, which can help the fast-food chain to persuade its clientele to buy more.
This will enable McDonald’s to be one of the first companies to integrate decision technology into the customer point of sale at a brick and mortar location.
How will McDonald’s use the new technology
Dynamic Yield’s data management capabilities provide a unified view of the customer, allowing the rapid and scalable creation of highly targeted digital interactions.
Analysts, marketers, and engineers use Dynamic Yield for launching new personalization campaigns, running server-side and client-side A/B tests, leveraging machine-learning for product and content recommendations, and employing algorithms for smartly triggered email and push notifications.
McDonald’s already tested this technology in several U.S. restaurants in 2018. Upon closing of the acquisition, McDonald’s will begin to roll this technology out in the Drive Thru at restaurants in the United States in 2019 and then expand the use to other top international markets.
According to the company, McDonald’s will also begin work to integrate the technology into all of its digital customer experience touchpoints, such as self-order kiosks and McDonald’s Global Mobile App.
“Technology is a critical element of our Velocity Growth Plan, enhancing the experience for our customers by providing greater convenience on their terms,” said Steve Easterbrook, President, and Chief Executive Officer, McDonald’s Corporation. “With this acquisition, we’re expanding both our ability to increase the role technology and data will play in our future and the speed with which we’ll be able to implement our vision of creating more personalized experiences for our customers.”
Liad Agmon, co-founder and CEO of Dynamic Yield, added: “We started Dynamic Yield seven years ago with the premise that customer-centric brands must make personalization a core activity. We’re thrilled to be joining an iconic global brand such as McDonald’s and are excited to innovate in ways that have a real impact on people’s daily lives.”
McDonald’s is already investing heavily on customer-focused technology, including the development of McDonald’s Global Mobile App, Mobile Order and Pay, indoor and outdoor digital menu boards and self-order kiosks.
All the recent tech advancements rose the bar to other restaurant chains and transformed the customer experience both in and around their restaurants, with countless personalization options.
McDonald’s has nearly 38,000 locations in over 100 countries around the world. Over 92% of McDonald’s restaurants worldwide are owned and operated by independent local business men and women.