International Marketing 10th Edition by Michael Czinkota, Michael Brumbach, Ilkka Ronkainen

Exercise 6

Just Swipe It
Ordering food has not changed for 30 to 40 years. Now, McDonald's is ready to change how you pay for your Happy Meal in Europe with touch screens and swipe cards. They will also be revamping their menu and introducing longer opening hours to make it easier for their customers and improve efficiency. McDonald's is also looking forward to harvesting more information about their customers' ordering habits. The people of the United Kingdom will shortly be able to swipe their Visa debit cards as simply as their Oyster cards. (The Oyster card is a form of electronic ticketing used on public transport services within the Greater London area of the United Kingdom.) They may also introduce roving waiters with handheld terminals to assist customers with extra products such as ice cream cones without them having to return to the till. This move has been triggered by the pervasive use of technology in Japan, whose citizens currently use their mobile phone for tickets.

On the bright side, (1) you will not have to repeat your order several times, (2) you can get a McDonald's meal without having cash in your wallet, and (3) the ordering process will speed up, thereby reducing the lines. On the not-so-bright side, (1) expect thousands to lose their jobs, and (2) McDonald's may act like Google and log, monitor, and do analytics of your buying behavior.
At a time when many retail and consumer companies are racking up sluggish or even shrinking sales in Europe, McDonald's like-for-like sales rose 5.7 percent year-on-year in the first quarter and McDonald's North American sales were up 2.9 percent in 2011-the highest growth out of its three main geographic regions. McDonald's reduced the locations in Europe, but the U.S. company is looking for 50,000 new employees.
There is no word yet on whether or not McDonald's plans to bring the technology to North America. Why?
SOURCES: Louise Lucas, "McDonald's to Introduce Swipe Cards to Europe," Financial Times, May 16, 2011, B4; and Irwin Allen Rivera, "McDonald's goes hi-tech: touch the screen to order, swipe card to pay," May 17th, 2011, http://technoodling.net/mcdonalds-goes-hi-tech-touch-the-screen-to-order-swipe-card-to-pay.