McDonald’s is planning to open 10,000 new stores globally by 2027, marking the “fastest period of growth” in the brand’s history. Additionally, the world’s largest fast food chain has announced a partnership with Google to automate restaurants using artificial intelligence.
Key Facts
- Global Expansion: McDonald’s expects nearly 2% growth in system-wide sales from its new restaurants, according to a press release. The United States will see 900 new restaurants, with the remainder opening internationally.
- Menu Revamp: The company plans to introduce a “Best Burger Initiative” to improve the quality of its burgers across nearly all markets by 2026. Additionally, McDonald’s will invest in its growing chicken business by expanding its McCrispy chicken sandwich to nearly all markets by 2025.
- AI and Automation: McDonald’s aims to use generative AI to accelerate automation in its locations and to help employees find quicker solutions to problems.
Big Number
- 50,000: This is the total number of McDonald’s restaurants expected to be in operation by 2027, if the expansion plan goes as projected.
Key Background
The announcement was made during McDonald’s Investor Day on Wednesday. Manu Steijaert, McDonald’s chief customer officer, highlighted the company’s historical growth: it took 33 years to open the first 10,000 restaurants, and another 18 years to grow from 30,000 to 40,000. Steijaert noted that the increasing demand for delivery services is a significant driver for new restaurant openings. McDonald’s plans to expand its delivery capabilities through its app, predicting that 30% of its deliveries will originate from the app by 2027.
McDonald’s new investment in AI is part of its ongoing interest in automation. In December, the company unveiled its first partly automated test store, where orders are placed at kiosks and delivered via conveyor belts. This venture received mixed reactions on social media, with concerns about the impact on human jobs. However, McDonald’s asserts that the automated services will enable kitchen staff to serve customers more efficiently. Other fast-food chains are also exploring AI integration; for instance, Wendy’s tested an AI chatbot for drive-thru orders earlier this year.
Tangent
On Wednesday, McDonald’s also revealed details about its new CosMc’s restaurant concept, a beverage-focused initiative aimed at competing with chains like Starbucks. The first CosMc’s location opened in Illinois this month as part of a limited test, with plans to expand to 10 pilot locations by the end of next year.