Fast-food giant’s delivery service expands
More hungry customers can now get their Big Macs, fries, beverages and desserts delivered right to their door.
As of Wednesday, May 17, McDonald’s is expanding its delivery service to customers in Los Angeles, Chicago, Columbus and Phoenix. Through its partnership with UberEats, the company’s “McDelivery” program now encompasses up to 1,000 restaurants in the United States.
In January, McDonald’s and UberEats began piloting McDelivery in more than 200 restaurants throughout Miami, Orlando, and Tampa Bay. The pilot generated high levels of customer satisfaction and consistent growth as awareness increased, and more customers began using the service to have orders delivered to their door, according to the fast-food giant.
“We are bringing a new level of convenience to more of our customers as we continue to transform the McDonald’s experience,” said McDonald’s president and CEO Steve Easterbrook. “Through the ease of the UberEats app, our customers can enjoy their favorite McDonald’s foods delivered right to them — giving them greater choice, control and personalization than ever before.”
Food delivery is not a new program for the Golden Arches. Globally, McDonald’s has over two decades of experience in the delivery service. Asia and the Middle East are not only McDonald’s two most developed delivery markets, but their top delivery restaurants generate up to 40% of their sales from delivery. With their help, McDonald’s chalked up $1 billion in delivery sales across both company and franchise restaurants globally in 2016, according to the company.
Food deliveries also is not new territory for Uber. The livery company recently partnered with Kroger Co. as it tests Uber-based grocery deliveries in several locations.
Report: Walmart preps for next competitive threat
Executives at Walmart are planning their next move in anticipation of its newest rival — and asking suppliers to support their cause.
The European grocer Lidl, which has a track record for disruption, is preparing to open its first 20 United States-based stores this summer. The first locations are set to open their doors in the next few weeks. As a result, Walmart is asking suppliers to keep their prices low, according to the Consumerist.
According to the report, vendors have been told that Walmart should be paying 15% less than competitors at least 80% of the time. Additionally, the retail giant is asking suppliers to ship Walmart’s orders complete and on time, which would help keep items in stock, avoid unneeded re-orders, and take in an additional $1 billion in sales — a move that would benefit suppliers, as well.
Lidl is not a new competitor for Walmart. The retail giant’s Asda stores compete directly against Lidl and Aldi in Europe. As Lidl prepares its U.S. debut, however, Walmart is eager stay one step ahead — especially since its European Asda brand has failed to grow sales for 13 consecutive quarters, while Lidl, along with Aldi, have captured 12% of the market, the report said.
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Starbucks’ payment system shut down takes a toll
Free coffee was on the menu at some Starbucks locations on Tuesday, due to a point-of-sale software glitch.
What the coffee giant described as a typical software update ended up putting POS systems out of commission — and for longer than expected, in some locations. The outage began in the evening on Monday, May 16, and continued into Tuesday, May 17, according to CNBC.
In the report, Starbucks said in a statement, “As part of our normal course of business, overnight we worked to install a technology update to our store registers in the U.S. and Canada. A limited number of locations remain offline, and we are working swiftly to resume full operations in each of these stores.”
Starbucks regulars turned to Twitter to share the news. These posts ranged from pictures of hand-made store closure notices to tweets of disappointment, including “My Starbucks is closed this morning. What kinda sick joke…”
Despite the disruption, some Starbucks locations did try to function with a “business as usual” mindset. This included switching to cash-only payments, as well as offering customers free tall beverages, according to CNBC.
Starbucks also reported that the glitch was not related to the recent "WannaCry" ransomware attack that infected more than 300,000 computers worldwide, according to Reuters.