The recent “technology outage” experienced by McDonald’s restaurants and its app on Friday highlights the fast-food giant’s increasing reliance on technology systems, which have become more prevalent in the food service industry.
The outage affected McDonald’s locations across various global markets, including Japan, Australia, and the United Kingdom, leading many stores to either accept only cash temporarily or shut down completely. While the company did not disclose the full extent of the outages, one franchise in San Antonio, Texas, reported being unable to accept orders via its app or cash for 12 hours.
McDonald’s attributed the outage to a third-party provider during a “configuration change.” Brian Rice, McDonald’s EVP and Global Chief Information Officer, emphasized the importance of technology reliability and stability, stating that all global restaurants were operational again, with the company conducting an internal analysis to hold responsible parties accountable. This incident occurred shortly after McDonald’s annual report warned of potential challenges from technology outages.
In its report filed with the Securities and Exchange Commission on Feb. 22, McDonald’s acknowledged its increasing reliance on technology systems, such as point-of-sale, digital, and delivery solutions, and highlighted the potential impact of system failures or interruptions on operations and customer experiences.
Furthermore, McDonald’s cautioned about the risks associated with deploying artificial intelligence (AI) tools into its systems. Despite the outage, McDonald’s remains committed to its long-term strategy of leveraging technology to enhance efficiency and performance.
The company has actively promoted digital ordering through its mobile app and kiosks, which accounted for approximately one-third of sales in its top markets in 2022. In December, McDonald’s announced a partnership with Google to transition its computer systems to the cloud, enabling its generative AI system to analyze data on a global scale for improved food quality and customer experience.
Generative AI technology is already integral to restaurant operations and personalized marketing efforts, leveraging internal customer profiles to tailor recommendations and promotions.