Published Online:December 2024
Product Name:The IUP Journal of Case Folio
Product Type:Article
Product Code:IJCF051224
Author Name:Chandan A Chavadi, Pradeep P, Bhartrihari Pandiya and Ravindran K
Availability:YES
Subject/Domain:Management
Download Format:PDF
Pages:58-71
This case discusses McDonald’s technological transformation in response to changing consumer appetite for healthier and more convenient fast-food options, achieved through two strategic initiatives: The Velocity Growth Plan and Accelerating the Arches 2.0. The Velocity Growth Plan had leaned on digitization, store remodels and delivery enhancements. This evolved into Accelerating the Arches 2.0, which focused on digital engagement, core menu items and operational efficiency across Delivery, Digital, Drive- Thru and Development. Throughout its digital transformation, McDonald’s witnessed tech advancements like AI-powered personalization through its dynamic yield acquisition and voice-ordering technology from Apprente. However, the fast-food chain faced hurdles such as franchisee relations, employee training, and balancing automation with human interactions. Economic pressures, shifts in consumer expectations, and rising competition added complexities to their efforts. McDonald’s managed to innovate, despite these hurdles, through its collaboration with Tech Giant Google. McDonald’s commitment to innovation and strategic foresight positioned it to sustain growth and reinforce its competitive edge in the fast-food industry.
As global consumer tastes started shifting more towards healthier fast food and digital convenience, McDonald’s responded with two sets of strategic plans—the Velocity Growth Plan and Accelerating the Arches 2.0. These plans, which included changes within its core business segment, aimed to keep pace with changing market dynamics. Launched in 2017, the Velocity Growth Plan reinvigorated the brand with a focus on better customer experience and innovation. On this foundation, the Accelerating the Arches 2.0 initiative, launched in 2023, was built to capitalize on growth opportunities via their optimized marketing spend. The chain held the line on core menu staples but doubled down on delivery and digital capabilities and developed drive-thrus.