McDonald’s hasn’t made an investment of this scale in 20 years. They’re looking to become the sole owners of the decision-logic technology company Dynamic Yield Ltd, as reported by the Financial Times, in a bid to better personalise the customer experience.
The announcement did not include the price but a source with knowledge of the deal has said it’ll be more than $300 million.
Dynamic Yield, based in New York and Tel Aviv, will help McDonalds with a digital menu in particular. Their website says they’ve had clients like Ikea, Urban Outfitters Inc and Hellofresh in the past. They personalise customer experience for consumers whether it’s through a website or a digital restaurant menu in McDonald’s case.
McDonald’s will utilise the decision technology to personalise drive-thru experiences in particular. The tech will display food items based on the weather, time of day, trending menu items within a particular region and current restaurant traffic on a digital display. It will also make suggestions for items to add onto a customers order.
The investment is among the many tech investments that McDonald’s have been making since Steve Easterbrook took the Presidential and CEO throne. They’ve already added self-serving kiosks, digital menu boards and delivery to their chains which not only made them stand out but also was a boost for sales.
“Technology is a critical element of our Velocity Growth Plan, enhancing the experience for our customers by providing greater convenience on their terms,” says Easterbrook in a statement. “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 personalised experiences for our customers.”
Liad Agmon, co-founder and CEO of dynamic yield, added, “We started Dynamic Yield seven years ago with the premise that customer-centric brands must make personalization a core activity. 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.”
McDonald’s shares rose 1.7% on Tuesday to $188.88 which has been it’s largest increase in two months. The stock has gained nearly 6% in total this year.
Last year McDonald’s tested Dynamic Yield technology in some parts of the U.S. so this might not be the first time you’re seeing this kind of menu but after the deal closes this year these personalised drive-thru menus will be in all chains. They’ve even said that they want to expand the capability to markets abroad.
Although, as mentioned before, McDonald’s will be the sole owners of Dynamic Yield after the deal goes down it has been agreed that Dynamic Yield will remain a stand alone company which McDonald’s will continue to invest in.