McDonald’s (MCD) Germany has partnered with the location intelligence startup, Targomo, to carefully plan its expansion needs. Targomo analyses geospatial data using Artificial Intelligence (AI) to unlock the full potential of location intelligence for any business or organization. The location intelligence company, based in Berlin and Potsdam, was able to convince the burger giant of its technology and the expertise it has gathered, and signed the global fast-food chain as a new customer. McDonald’s uses the platform TargomoLOOP to plan new restaurant locations in Germany.
Many organizations are using location and AI to circle down what, where, and why an event is taking place as well as to gain insight about the event. In case of restaurant or fast-food chains, LI plays a crucial role in its success.
Location Intelligence (LI) sits at the heart of any business or organization’s success. More than 90% of business and community success rely on it. It is achieved by analyzing geospatial data, which enhances insight, understanding, predictions and decision-making.
McDonald’s opts for LI from Targomo
“In the future, TargomoLOOP will make it much easier for us to evaluate new restaurant locations in terms of the relevant catchment area,” says Andreas Weber, Head of Real Estate at McDonald’s Germany. “The sound data basis and the intuitive interface were decisive factors in favor of a decision for TargomoLOOP.”
“We are proud to support McDonald’s in their German expansion,” said Niklas Gossel, Head of Enterprise Sales at Targomo. “Our analytics platform is designed to provide brands of large branch networks with a reliable data-driven decision-making basis. Locations contribute decisively to value creation but are also associated with high investments. We can use our technology to significantly reduce risks of bad decisions and strengthen the value creation of physical locations.”
Adaption to change
McDonald’s one of the core business strategy is to adapt to change be it technology, regulations or customize as per the region. This is why McDonald’s thrived the pandemic even after the dining rooms were closed. MCD flourished because of its drive-through and delivery. According to MCD’s corporate reports, the chain saw a global sales increase 12.7% in its third quarter and a 9.6% increase in the US.
MCD made conscious decision to invest on digital apps and ordering kiosks just before the pandemic, which proved to be fruitful during the pandemics.
“Being customer-driven is about more than just menu items. It’s also about delivering feel-good experiences when and where our customers want McDonald’s, so we can bring the Golden Arches to as many customers as possible. That means continuing to increase our engagement across drive-thru, digital, and delivery. As we do that, we’re seeing an increase in sales mix across these channels. In our top six markets over 20% of sales or about $13 billion year-to-date came through digital channels, whether it was through our app, kiosk in our restaurants or delivery,” CEO Chris Kempczinski was quoted as saying.
McDonald’s serves around 1.6 million guests a day in around 1,450 restaurants in Germany. Apart from that, McDonald’s Germany has switched its paperboard boxes to thin wrapping paper. Last year, the food giant took this step to save energy, water and CO2 in production. According to MCD, the thin wrapping paper has locally sourced grass fibres, making it environmentally healthy.
