Given all of the plans that McDonald's has for implementing the game-changing technology, the $300 million price tag was probably a bargain.
— Erika Adams
In a testament to the value of personalization, McDonald’s announced plans to acquire an Israel-based startup that uses data to serve up personalized offers to customers. According to people familiar with the matter, McDonald’s will acquire Dynamic Yield for upwards of $300 million.
The acquisition will inject technology into multiple areas of the traditional fast food restaurant, starting with a core feature: the drive-thru. McDonald’s tested the technology in a Miami location, where, according to Wired, the company’s algorithms took real-life factors like weather and traffic into account, suggesting appropriate menu items.
Thanks to new technology, restaurants collect plenty of data. But the practical application of that data is big business, and McDonald’s is seizing that opportunity with the Dynamic Yield buy.
“Upon closing of the acquisition, McDonald’s will begin to roll this technology out in the drive thru at restaurants in the United States in 2019 and then expand the use to other top international markets,” the company said in a statement on the news. “McDonald’s will also begin work to integrate the technology into all of its digital customer experience touchpoints, such as self-order kiosks and McDonald’s global mobile app.”
Tech Investment As Strategy
The restaurant company hasn’t shied away from technology. From a pioneering delivery partnership with Uber Eats to its investment in Experience of the Future stores filled with touch screens, it has proven its interest in staying ahead of the curve. Earlier this month, McDonald’s chief financial officer, Kevin Ozan, reiterated how necessary it is to keep investing in technology innovations to continue growth.
Presumably, Dynamic Yield offers the kind of insights McDonald’s is looking for, and they’ll have access to plenty of consumer-facing touchpoints across the McDonald’s system.
“We started Dynamic Yield seven years ago with the premise that customer-centric brands must make personalization a core activity,” Dynamic Yield CEO Liad Agmon said in a statement. “ We’re thrilled to be joining an iconic global brand such as McDonald’s and are excited to innovate in ways that have a real impact on people’s daily lives.”