AI on the Menu: Accelerating McDonald`s Quest for Scale and Speed

AI on the Menu: Accelerating McDonald`s Quest for Scale and Speed
Case Code: ITSY147
Case Length: 15 Pages
Period: -
Pub Date: 2025
Teaching Note: Available
 Price: Rs.400
Organization: McDonald’s Corporation
Industry: Food & Beverage
Countries: United States
Themes: Artificial Intelligence, Digital Transformation, Innovation,Collaboration
AI on the Menu: Accelerating McDonald`s Quest for Scale and Speed
Abstract Case Intro 1 Case Intro 2 Excerpts

Abstract

This case study, “AI on the Menu: Accelerating McDonald’s Quest for Scale and Speed,” provides an overview of the various measures taken by US-based multinational fast food chain McDonald’s Corporation (McDonald’s) to integrate AI into its business operations. The case starts out with a brief history of McDonald’s, including an insight into the various digital technologies that it adopted. Apart from creating an in‑house digital technology team tasked with integrating digital and AI solutions across its operations, McDonald’s made strategic acquisitions of certain high-tech AI start-ups to fuel customer‑facing tech innovation.

The case also documents the key partnerships that McDonald’s forged with leading technology firms to scale its AI initiatives across its global operations. McDonald’s used AI to not only develop talent acquisition platforms like McHire, but also to integrate AI-powered solutions across various consumer touchpoints, including drive-thrus, mobile apps and kiosks. These initiatives aimed to streamline operations, reduce labor costs, increase order accuracy, and personalize customer interactions. Despite early successes, McDonald’s faced certain setbacks in its AI implementation, due to poor cyber security measures and persistent technical issues. These setbacks raised a critical dilemma: Should McDonald’s wait for AI adoption to become mainstream in the fast food industry, or continue its aggressive AI investment strategy to lead with early adoption?

Issues

The case is structured to achieve the following teaching objectives:

  • Analyze the AI transformation within the quick-service restaurant industry.
  • Understand the use of the open innovation model as an AI implementation strategy in organizations
  • Evaluate ways to build Responsible AI
  • Apply methods to mitigate the risks of AI implementation
  • Outline the strategy to have optimal returns on AI investments

Contents

Keywords

Artificial Intelligence (AI); Digital Transformation; Quick-Service Restaurants; Drive-Thru; Voice Ordering Technology; Customer Experience; Operational Efficiency; Strategic Partnerships; Tech Acquisition; Responsible AI; Open Innovation; Predictive Analytics; Talent Acquisition; Competitive Advantage; Cloud Computing; Return on Investment; Service Automation; and Risk Management,McDonald's; McHire; Fast Food Industry; Inhouse R&D; Conversational AI tool Olivia; Speedee Labs; Personalization; Automated Order Taker (AOT); Staffing Issues; Reputational Damage

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