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

Excerpts

Mcdonald’s and AI Technology

Post-2010 – with the rise of smartphones, mobile apps, and data-driven decision making – technology adoption became highly relevant in the US fast food industry. In tune with the times, McDonald’s too began adopting the latest technologies in its business operations..

Accelerating AI Implementation

From the 2020s, the various companies in the food service industry began to face growing pressure to further modernize operations and improve efficiency through AI adoption. In 2020, McDonald’s announced its ‘Accelerating the Arches’ growth strategy (See Exhibit IV), which included a “double down on the 3D’s: Digital, Delivery and Drive-Thru.” In 2020, the COVID-19 pandemic accelerated the shift toward contactless service, prompting further investments in drive-thru and delivery infrastructure..

But, is AI Really An All-Encompassing Solution?

Along with the rest of the food service industry, McDonald’s viewed the adoption of AI as a strategic move toward modernization and a potential means of lowering operational costs by decreasing dependency on human labor. In the initial years, it did experience a plethora of benefits through AI adoption. It was able to streamline operations and improve customer experience by decreasing wait times and reducing order inaccuracies..

The Way Forward With AI

The AI market was projected to reach US$ 244.22 billion in 2025. The market was expected to have a CAGR of 26.60% during 2025-2031, resulting in a market volume of US$ 1.01 trillion by 2031..

Exhibits

Exhibit I: AI and the Global Fast Food Industry, as of 2025
Exhibit II: McDonald’s Timeline
Exhibit III: Income Statement of McDonald’s (2020-24)
Exhibit IV: Accelerating the Arches: McDonald’s Growth Strategy/Strategic Plan
Exhibit V: AI Market Size

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