Digital Surgeons’ Post

This McDonald's Framework will change how you lead. If you're into the stories of how businesses think differently to win differently, you’ll love this one. I call it the 𝗠.𝗖.𝗗.𝗢.𝗡.𝗔.𝗟.𝗗 𝗙𝗿𝗮𝗺𝗲𝘄𝗼𝗿𝗸. McDonald's wasn't always the drive-thru titan we know today. In the 1950s, as car sales skyrocketed, McDonald's made a move that would redefine not just its business but the entire fast-food industry. They didn't just build a brand; they literally owned the entire category. 𝗠 - 𝗠𝗮𝘀𝘁𝗲𝗿 𝗠𝗼𝗯𝗶𝗹𝗶𝘁𝘆: McDonald's aligned their brand with America's growing automobile culture. Their fast-food outlets turned into reliable pit stops, making them a part of the popular highway culture. Their addition of the drive-through was a break-through; the idea of receiving food while staying in your vehicle was unimaginable. While they didn’t invent it, they perfected it. 𝗖 - 𝗖𝗼𝗻𝘀𝗶𝘀𝘁𝗲𝗻𝘁 𝗕𝗿𝗮𝗻𝗱𝗶𝗻𝗴: Those golden arches became more than a logo. They served as beacons of consistency - a promise of familiar comfort food at each exit. 𝗗 - 𝗗𝗿𝗶𝘃𝗶𝗻𝗴 𝗧𝗿𝗲𝗻𝗱𝘀: Instead of chasing trends, they created them. They introduced a dining experience that capitalized on the highway system. 𝗢 - 𝗢𝗽𝗲𝗿𝗮𝘁𝗶𝗼𝗻𝗮𝗹 𝗲𝘅𝗰𝗲𝗹𝗹𝗲𝗻𝗰𝗲: The operational excellence of how they perfected and trained their teams created a masterful franchise experience for consistent CX for everyone. 𝗡 - 𝗡𝗶𝗰𝗵𝗲𝘀 𝗺𝗶𝗻𝘁 𝗿𝗶𝗰𝗵𝗲𝘀: Catering to families, truckers, and travelers, McDonald's became a haven for those seeking a quick and familiar feast while on the move. 𝗔 - 𝗔𝗻𝘁𝗶𝗰𝗶𝗽𝗮𝘁𝗶𝗼𝗻: Predicting customer behavior and innovating accordingly was their superpower. They anticipated trends and filled the gaps others didn't even see. Confession: I had way too many happy meals as a kid. 𝗟 - 𝗟𝗲𝘃𝗲𝗿𝗮𝗴𝗶𝗻𝗴 𝗧𝗲𝗰𝗵𝗻𝗼𝗹𝗼𝗴𝘆: McDonald's has consistently stayed ahead by leveraging technology to enhance customer experience and streamline ops. From the introduction of self-service kiosks to the deployment of AI in drive-thrus for order taking, McDonald's use of tech has not only improved service speed but also personalized the customer experience. This novel use of tech has allowed them to maintain relevance in a rapidly evolving world where they meet the modern consumer conveniently and efficiently. 𝗗 - 𝗗𝗶𝘃𝗲𝗿𝘀𝗶𝗳𝗶𝗰𝗮𝘁𝗶𝗼𝗻 𝗼𝗳 𝗱𝗶𝗻𝗶𝗻𝗴 𝗼𝗽𝘁𝗶𝗼𝗻𝘀: A key strategy for maintaining global dominance has been the diversification of its menu to cater to a wide range of tastes & dietary preferences. This includes introducing healthier options, local menu variations that respect cultural preferences, and limited-time offerings that create buzz and attract customers. ____ Want the cheat sheet? Comment with 🍟 Follow Pete Sena for more posts on divergent thinking.

From Observation to Innovation: What can a McDonald's thickshake teach us about customer-focused innovation? 🥤 Back in the 90s in North America, McDonald's worked on a relatively straight forward project to boost sales of their low-cost, high-margin thickshakes. They invested in new machines and launched an expensive marketing campaign, but to management's surprise there was zero increase in thickshake sales. Perplexed, McDonald's sought the guidance of Harvard innovation guru Clayton Christensen, who took a customer centric approach. Christensen's team went to McDonalds stores in the north east US to observe customers. On day 1, they observed three interesting things. 1: Half of the daily Thickshake sales happened by 8:30 AM 2: Men overwhelmingly dominated these purchases 3: Thickshakes were the only item these customers bought On Day 2 they continued the observations but followed up these early morning customers with a few interview questions that revealed insights that even McDonald's management didn't know: 🚗 They were commuters with 25-40 minute drives to work 🍳 Breakfast wasn't on their agenda, but a 'tide-over' until their mid-morning break was 🚗 Easy consumption on-the-go was a must ⏳ Slow enjoyment was key; the shake provided companionship and couldn't be consumed quickly McDonald's had been oblivious to this customer persona, but armed with this newfound knowledge, they pivoted their marketing strategy. The result? An incredible 700% surge in thickshake sales. The takeaway? True innovation often begins with truly understanding your customers—their unspoken needs, routines, and desires. Christensen's customer-focused approach is a powerful tool that can fuel innovation for start-ups, established global businesses like Maccas or any businesses in between! What could you do in your business to get a 700% increase in sales? What customer insight could drive that kind for return for you? 🚀💡 #CustomerInsights #InnovationSuccess #KnowYourCustomer See the video link in the comments to hear Christensen talk about this interesting case.

To elevate small businesses or restaurants to the next level, leaders can take several practical steps: Enhance Customer Experience: Focus on excellent customer service. Gather and act on customer feedback. Create a welcoming atmosphere with quality decor and ambiance. Invest in Staff Training: Provide ongoing training to improve service skills and product knowledge. Foster a positive work culture to boost staff morale and retention. Leverage Technology: Implement efficient POS systems. Use social media and online marketing to reach a broader audience. Offer online ordering and delivery services. Optimize Menu and Pricing: Regularly update the menu with seasonal or trendy items. Ensure competitive pricing while maintaining profitability. Address dietary preferences and restrictions (e.g., vegan, gluten-free options). Quality Control: Maintain high standards for food quality and safety. Regularly review and improve recipes and ingredient sourcing. Financial Management: Keep accurate financial records. Manage cash flow effectively. Explore financing options for expansion or improvements. Community Engagement: Participate in local events and support community initiatives. Build strong relationships with local suppliers and partners. Marketing and Branding: Develop a strong brand identity. Use targeted marketing campaigns to attract new customers. Encourage and promote positive reviews online. Innovation and Adaptation: Stay informed about industry trends and adapt accordingly. Innovate with new concepts or themes to stay relevant. Strategic Planning: Set clear, achievable goals. Develop and implement a strategic plan for growth. Regularly review and adjust the plan based on performance and market conditions. Implementing these strategies can help small businesses and restaurants improve their operations, attract more customers, and achieve sustainable growth.

Breakfast still a top-of-mind topic at Wendy’s as it navigates the value climate. The brand boasts perhaps the most stable value platform out there these days, from an everyday standpoint. Will be interesting to see what product innovations launch through there to bring some of those lower-income guests back. Always more likely for brands fo introduce new items at value points it’s testing than discount current products and have to jump them back up later.

How #ITleaders are #driving #new #revenue Given their unique perspective across the company, IT leaders are in prime position to identify and execute revenue-focused initiatives.CIOs and executive advisors share tips on supporting top-line growth. Sandwich-focused restaurant franchise Subway has some 37,000 locations worldwide,each of which faces a unique combination of factors,such as local competition and customer demographics, that impact sales and profitability. But Donagh Herlihy, the company’s chief digital and information officer,has a corporate-level solution to help each individual store determine “the sweet spot of pricing” to optimize profitability for that restaurant. The initiative, heavy on data and analytics,will sift through myriad market factors affecting each store to land on the optimal prices — and,in the process, boost revenue for franchise owners and the company itself. For Herlihy,identifying ways to drive revenue growth is all in a day’s work for modern tech execs. “Growth,profitability, productivity,and engagement are all now part of the CIO role that 20 years ago was all about internal operations,” says Herlihy,who has been an IT executive since landing his first CIO position in 2000. To deliver on that growth objective, Herlihy has been focused on enabling digital sales channels and maximizing the use of the data derived from them. Those are activities where the IT team can really prove their value,because they can only be done with the right technologies in place. For example, Subway IT has helped drive digital sales up 500% from 2019 to 2023, thanks to its work on Subway’s own digital channels as well as with third-party food delivery services,Herlihy says.Much of that work started in response to the pandemic. And Herlihy points to his team’s work on building a data environment that can be used to improve customer experience.For example,Subway gathers and analyzes data from its digital sales channels to identify possible friction in the customer experience—such as where customers abandon their online ordering—as well as opportunities for enhanced customer engagement,all of which helps ensure customers place their orders. Herlihy is now scaling that data work: “We built all of that for North America,which is our biggest region,but now we can take those platforms to Europe,Asia,and Latin America and expand it around the world,” he says. Meanwhile,Herlihy and his team are delivering more data-driven capabilities using machine learning and other data science technologies,collaborating with the business units to,for example,create personalized messaging and targeted marketing campaigns aimed at further boosting sales. Revenue takes center stage Herlihy’s vision for top IT leadership is not an anomaly. A 2022 report from Info-Tech Research Group revealed that supporting revenue growth was No. 4 on the list of priorities cited by CIOs,after business process improvements,digital transformation, and modernization.

One of my biggest mistakes as a CEO — not recognizing the power of the ecosystem. Partnerships have been a critical part of restaurant and retail technology success — as evidenced by Klaviyo's recent IPO (S-1) filing and their deep integration with Shopify. Today, we have some incredible partners at Thanx (with Klaviyo being among them)... Big restaurant tech like Olo, Toast, DoorDash, and Revel Systems. Agencies like Dreambox, Vert Digital, and Plein Air Agency. High-growth technology challengers like Deliverect, Adentro, Ovation, and Qu POS. Long-term industry stalwarts like Fishbowl, Red Onion, and Restaurant365. Our friends at the credit card networks who power our superior card-linked approach to loyalty (Visa, MC, Amex). And many, many more that I left off (I'm sorry‚ I cannot list everyone!) Want to help us turn partnerships into a major strength for Thanx? Passionate about restaurant and retail tech? Looking for the most cross-functional role out there. This is the job for you: https://lnkd.in/db-m4xyd (work with Emily Rugaber, Henry Gimelfarb!) CC: Andrea Wan, Edward Mills, Diego Panama, Sean J. Marrero, Kelly Sennatt Esten, Johanna Fiedler, Gregory Jacobs, Gregory Dukat, Michael Manlapas, Dan Bejmuk, Kevin Planovsky, Paul McEnany, Zhong Xu, Noah Hayes, Michael Potter, Nat Brogadir, 🎙️Zack Oates 💭, Niko Papademetriou, Adam Ochstein, etc... (LinkedIn telling me I tagged too many people now) Also props to Mike Head for helping us see the light on partnerships.

Why is feedback important for any restaurant business, and how does it impact their success? ✏️ Feedback is essential for any business for several reasons: 1. Customer Satisfaction: Feedback helps gauge customer satisfaction. Positive feedback lets you know what you're doing right, while negative feedback highlights areas for improvement. Satisfied customers are more likely to become repeat customers and recommend your restaurant to others. 2. Quality Improvement: Feedback provides valuable insights into the quality of your food, service, and overall dining experience. It helps identify areas that need improvement and allows you to make necessary adjustments to enhance customer experience. 3. Identifying Trends: Analyzing feedback can reveal trends or patterns in customer preferences and complaints. This information can guide menu updates, service enhancements, and marketing strategies. 4. Reputation Management: Monitoring and responding to feedback, especially online reviews, helps manage your restaurant's online reputation. Addressing negative reviews professionally shows that you care about your customers' opinions and are willing to address concerns. 5. Staff Performance: Feedback helps assess staff performance and identify training needs. Positive feedback acknowledges employees' efforts, while constructive criticism can help them improve their skills and customer interactions. 6. Innovation and Creativity: Feedback can inspire innovation and creativity. Customer suggestions and requests may lead to new menu items or unique offerings that set your restaurant apart. 7. Loyalty and Retention: Actively seeking and responding to feedback shows that you value your customers' opinions and fosters a sense of loyalty. Customers are more likely to return to a restaurant that listens to their feedback and acts upon it. 8. Competitive Advantage: Understanding what sets your restaurant apart from competitors is crucial. Feedback can reveal your unique selling points and areas where you excel, giving you a competitive advantage. To gather feedback effectively, consider various methods such as comment cards, online surveys, social media interactions, and direct communication with customers. Train your staff to encourage feedback and ensure that you respond promptly and professionally to all comments, whether positive or negative. Utilizing feedback as a tool for continuous improvement can lead to a stronger and more successful restaurant business

Check out this post by The Customer Obsession Advantage founder, Marbue Brown about his latest article in QSR Magazine

🚀 For multi-unit brands to unlock growth potential, a unified approach between corporate strategies and franchisee cooperation is vital. Embracing cutting-edge technology is crucial for success, but it requires overcoming hesitancy and ensuring a seamless implementation process. Get 5 tips from our experts on how brands can better support operators in embracing tech innovations to drive growth and profits: https://lnkd.in/d5iiH9qP #artificialintelligence #machinelearning #restauranttech #tech

The fast food industry is undergoing massive disruption driven by digital technologies. McDonald's is leading the charge on how technology can enhance operations and customer experience. This article in Entrepreneur highlights some of McDonald's key digital initiatives: - Self-order kiosks with digital menu boards are speeding up service and allowing more customization. Kiosks now exist at thousands of locations. - Mobile ordering and pay-ahead options powered by the McDonald's app provides convenience and helps drive higher check averages. -Artificial intelligence is being used for predictive analytics - anticipating customer traffic patterns and food prep needs. This optimizes workflow. - Voice-recognition drive-thrus can understand customized orders more accurately. McDonald's scale and resources allow it to integrate emerging tech in ways that smaller chains cannot. But its digital transformation provides lessons for any restaurant on using technology strategically. The future for fast food will be driven by digital experiences meeting customer needs for speed, value and convenience.