Fast-food giant McDonald’s experienced a major “technology outage” on Friday, impacting restaurants and its app in various global markets such as Japan, Australia, and the United Kingdom.
This led to disruptions in operations and forced some locations to temporarily only accept cash or close down altogether. The company has not disclosed the extent of the outages, but a franchise in San Antonio, Texas, was unable to accept orders through the app or cash even 12 hours after the issue began.
McDonald’s Executive Vice President and Global Chief Information Officer, Brian Rice, stated that the outage was caused by a third-party provider during a “configuration change.” He reassured customers that “reliability and stability of our technology are a priority” and mentioned that all restaurants globally are now open and serving customers. The company is currently analyzing the issue and will hold internal teams and vendors accountable.
This outage could potentially harm McDonald’s reputation as it comes shortly after the company filed its annual report on February 22nd, stating the possible challenges it could face from technology outages. McDonald’s highlighted its increased reliance on technology systems, such as point-of-sale, to support its business and digital solutions, emphasizing that any failure or interruption in these systems could significantly affect operations and customer perceptions.
Additionally, the company acknowledged the risks involved in incorporating artificial intelligence (AI) tools into its systems. The report stated that these tools may not generate the intended efficiencies and could impact business results. However, McDonald’s does not plan on altering its long-term strategy of using technology to improve its performance.
Technology plays a vital role in McDonald’s operations, and the company has been promoting the use of digital tools like its mobile app and kiosks to customers, which accounted for approximately one-third of sales in its top markets in 2022.
In December, McDonald’s announced a partnership with Google to transfer its computer systems into the cloud, allowing its generative AI system to better understand patterns and provide “hotter, fresher food” to customers.
Artificial intelligence already plays a significant role in powering McDonald’s operations and marketing. Its use of AI has enabled personalized pitches to customers based on their profiles, resulting in a more efficient and effective marketing strategy.
Despite the technology outage, McDonald’s does not plan to deviate from its long-term strategy of deepening its reliance on technology to improve efficiencies and enhance customer experiences. This outage serves as a learning experience for McDonald’s, highlighting the potential risks that come with incorporating advanced technology into its systems.
It also emphasizes the importance of reliable and stable technology in the food service industry, where a minor glitch can significantly impact operations. Moving forward, McDonald’s is likely to prioritize maintaining reliable and efficient technology to avoid any future outages and continue its growth in the digital realm.
