McDonald’s in big tech acquisition
McDonald’s outdoor digital drive-thru menus are about to get a lot more personal.
The company announced it is acquiring Israeli startup Dynamic Yield Ltd., a personalization and decision-logic technology company. The technology will enable McDonald’s to vary its outdoor menu displays to show food tailored to such factors as time of day, weather, current restaurant traffic and trending menu items. It will also allow the chain to instantly suggest and display additional items to customers based on their current selections.
The deal is valued at more than $300 million, making it the largest McDonald’s deal in two decades, according to Reuters.
McDonald’s, which tested the new menu system in several U.S. locations in 2018, will start to roll out the technology to its restaurants in the United States in 2019 and then expand it top international markets. The company also plans to integrate the technology into all of its digital customer touchpoints, including its self-order kiosks and 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 CEO, McDonald’s Corp. “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.”
The acquisition builds on McDonald’s recent advancements in the tech space to enhance the customer experience. These include the development of its global mobile app, mobile order and pay, indoor and outdoor digital menu boards and self-order kiosks.
Upon closing of the deal, McDonald’s will become sole owner of Dynamic Yield, which will remain a standalone company. Dynamic Yield will also continue to serve their current, and attract future, clients.
“We started Dynamic Yield seven years ago with the premise that customer-centric brands must make personalization a core activity,” said Liad Agmon, co-founder and CEO of Dynamic Yield. “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.”