Published: Sun, March 05, 2017
Worldwide | By Sean Reid

McDonald's delivery might be on its way to the UK

McDonald's delivery might be on its way to the UK

"Through enhanced technology to elevate and modernize the customer experience, a focus on the quality and value of our food and redefined convenience through delivery, we have a bold vision for the future and the urgency to act on it", McDonald's chief executive Steve Easterbrook wrote in a statement to investors. Almost 75% of the population in its top five markets lives within three miles of a McDonald's, the company said.

Many of McDonald's overseas restaurants already offer delivery, especially in Asia and the Middle East, and the company generated nearly $1 billion in sales from the channel past year. The chain's mobile app would, theoretically, ease some congestion inside the drive thru.

Chris Kempczinski, McDonald's USA President revealed during the meeting with investors held in Chicago on Wednesday that the organization lost more than 500 million clients to close contenders since 2012.

Additionally, McDonald's aims to capture rapid growth in delivery by expanding around the world.

A big advantage for McDonald's deliveries: The burger giant noted that 75% of the population in its five biggest markets - U.S., France, the U.K., Germany and Canada - live within three miles of a McDonald's.

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For 2019 and beyond, McDonald's said it expects to expand its operating margin from the high-20-per-cent range to the mid-40-per-cent range, as it sells more of its restaurants to franchisees and relies more heavily on royalty fees. Numerous beverage and food places, from Starbucks and Dunkin Donuts to Domino's and Taco Bell, have mobile apps that allow customers to order and pay.

The company said it is "experimenting with different delivery models, including partnering with third parties".

They already do home delivery in China and Singapour but as part of their plan to become the "global leader in delivery", they've hinted that the five biggest markets are next for doorstop Big Macs. The restaurant chain also named other delivery services, such as GrubHub Inc., during its presentation.

The goal is "progress over perfection", said Sappington, who added that McDonald's will also debut "mobile order and pay" in about 6,000 global locations by year-end as it works to add a loyalty program and customization.

McDonald's shares closed up 1.1 percent on Wednesday, to $129.05.

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