McDonald’s Says Geofencing Technology Helps Boost Customer Satisfaction

McDonald’s reportedly improved customer satisfaction scores and reduced customer wait times by using geofencing technology to streamline the mobile ordering process.

The quick-service restaurant (QSR) uses that technology to notify its crews that customers are approaching so that they can start preparing orders, Chain Store Age reported Thursday (Nov. 7), citing a McDonald’s blog post from June.

“Digital ordering continues to be a huge growth driver for McDonald’s, and our new mobile-order experience is leading the way,” Jonathan Kelly, director, product engineering at McDonald’s, wrote in the post.

The deployment of the geofencing technology for this purpose is part of the QSR’s “Ready on Arrival” pilot program, which aims to help McDonald’s crew members start preparing mobile orders before the customer arrives at the restaurant to pick up those orders, according to the report.

McDonald’s CEO Chris Kempczinski highlighted the Ready on Arrival (ROA) program during the company’s Oct. 29 earnings call, saying that it is a key ingredient in providing everyday value, PYMNTS reported at the time.

“We know from the U.S. that ROA helps not only with smoother restaurant execution, as crew can better sequence in the kitchen, but also drives higher customer satisfaction scores by reducing wait times,” Kempczinski said.

In another, separate deployment of new technology, it was reported in September that McDonald’s was launching a series of digital ordering stations that provide cashierless checkout options.

These stations will be able to take cash and provide change, letting customers skip the register. They will replace existing kiosks that require diners who aren’t paying with cards to wait in line to get checked out by a cashier.

Consumers engage in digital activities related to restaurants 12.5 days per month, according to the PYMNTS Intelligence report, “How the World Does Digital.”

Ordering from a restaurant digitally offers a quick solution for meals without the need for extensive planning or preparation, and user-friendly interfaces make it easy to place an order with just a few taps, the report found.

During an April 30 earnings call, McDonald’s Chief Financial Officer Ian Borden said: “Across our top markets, digital penetration is growing, as evidenced by our increased loyalty sales and record mobile app orders, leading to greater frequency and increased spend by loyalty customers.”

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