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McDonald's Canada adding digital kiosks to compete with fast casuals

McDonald’s Restaurants of Canada Ltd. is introducing digital kiosks at its restaurants to allow customers to order premium hamburgers from almost 30 options.

October 5, 2015

McDonald’s Restaurants of Canada Ltd. is introducing digital kiosks to allow customers to order premium hamburgers from almost 30 options, including five types of cheese, while adding greeters and servers to bring the food to the table, The Globe and Mail reported.

The self-order kiosks include 12 toppings (such as guacamole and slice jalapenos,) two types of buns (sesame seed brioche-style and artisan-style bakery roll), a lettuce wrap and nine sauces (such as chipotle aioli and grainy mustard). Customers who place their order can wait at a table for staff to deliver their fare to them, the article stated.

U.S. parent McDonald’s Corp. is struggling with competition from pricier casual restaurants and gourmet burger chains. McDonald’s is betting that adding more service and offerings will draw consumers who may be tempted to stray to rivals, the article stated.

McDonald’s has had some success with digital kiosks in other markets. In France, customers spend on average about 30 per cent more at the kiosks.

However, the custom-burger prices at the kiosks are more than 15 percent higher than those of a regular Big Mac, The Globe and Mail reported.

At the digital machines, customers feel less rushed about making their choices than at the counter, often prompting them to order more, John Betts, chief executive officer of McDonald’s Canada, told The Globe and Mail. They pay with a debit or credit card rather than cash, which tends to result in them spending more, he said.

McDonald’s Canada will spend more than $200-million over the next two years to add the kiosks and extra staff to about 1,000 of its 1,400-plus restaurants, the article stated. The effort will add 15,000 new jobs to its current 85,000, Betts told The Globe and Mail. McDonald’s Canada will launch the kiosks, servers and greeters at 20 to 30 restaurants this year.