Dive Brief:
- McDonald's expanded its McDelivery service via UberEATS, which debuted mid-May, to 1,000 more U.S. locations on May 31, Post & Parcel reports.
- The fast food chain expects to enable the service at over 3,500 restaurants by the end of June. The service is currently available at 2,000 locations.
- The restaurant says it fulfills over 60% of its orders in the evening, or late at night. With about 75% of the population living within miles of a McDonald's, the company sees great potential for the service.
Dive Insight:
McDonald's has retained its number two ranking in Gartner's annual supply chain for the third year in a row — beating out Inditex, Amazon, and Apple — and it's easy to see why.
The company relies on a horizontal system which allows all participants within the supply chain to succeed. By focusing on the end product, the company empowers suppliers to make judgment calls about how best to meet production goals and to take a seat at the management table.
Such a strategy is likely playing an important role in its quick expansion within the food delivery market. While initially, the company discussed delivery options with such companies as Foodpanda and Postmates, ultimately the company has seen the most success with Uber.
That's in the U.S. Globally, the company has vast experience with delivery options over the past 20 years. In 2016, McDonald's earned approximately $1 billion in delivery sales through both company restaurants and franchises. Delivery is most popular in Asia and the Middle East, where top producers can generate roughly 40% of revenue from delivery alone.
Cultural variations no doubt have an effect, but McDonald's faced fewer obstacles in transferring its model from overseas to the U.S. Judging by current numbers, a similar system is succeeding.
