Fast-food chain McDonald’s will acquire ‘decision logic’ innovator Dynamic Yield for a reported $300 million, allowing it to bring greater customisation to digital display screens at its restaurants.
Dynamic Yield uses artificial intelligence to deliver greater individualisation at customer touchpoints – whether that’s online, in app or at kiosk.
McDonald’s will utilise the American-Israeli company’s technology to provide a more personalised experience, varying digital Drive Thru displays to show food based on time of day, weather, current restaurant traffic and trending menu items. The decision technology can also suggest additional items for a customer’s order based on their current selections.
The fast-food chain, which in recent years has invested heavily in home delivery and digital technology like mobile ordering and digital menu boards, said the acquisition would “fast-track” its digital transformation.
The company tested Dynamic Yield’s technology in several US restaurants in 2018 and plans to roll it out to Drive Thru locations at restaurants in the US this year, before expanding to other countries after that.
McDonald’s CEO Steve Easterbrook said: “Technology is a critical element of our Velocity Growth Plan, enhancing the experience for our customers by providing greater convenience on their terms. 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 personalisation 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.”
After closing, Dynamic Yield will remain a standalone company and will continue to work with other brands besides McDonald’s – but it remains unclear whether McDonald’s will exert a monopoly over the technology specifically for the fast-food market.
Dynamic Yield has already worked with food brands and retailers like Hello Fresh and Ocado.
© FoodBev Media Ltd 2019