Mcdonald's Plans Delivery From 5,000 Us Restaurants By The End Of 2017

Posted: Oct 26, 2017



Currently, McDonald's delivers out of about 3,700 of its stores nationwide.

On Tuesday, McDonald's said the company remains on track to offer delivery in 10,000 restaurants globally by the end of the year.

In 2016, the burger chain brought in nearly $1 billion in delivery sales globally.

By the end of the year, McDonald's plans to offer delivery from 5,000 of its U.S. locations. Currently, the burger chain delivers out of about 3,700 of its stores nationwide.

"We're learning a lot about delivery and seeing success in dense urban metros with commerce, like New York, Boston, Miami and Los Angeles," Chris Kempczinski, president of McDonald's USA, said Tuesday on a call with analysts and investors. "I truly believe we're just beginning to scratch the surface on this opportunity."

Earlier this summer, Chief Executive Steve Easterbrook offered an update and said delivery was available at more than 2,000 locations, and he expected McDonald's partnership with UberEats to expand to more than 3,500 locations by the end of June.

Previously, the Golden Arches had expanded third-party delivery to more than 1,000 chains nationwide.

In the U.S., 60 percent of McDonald's delivery orders are placed in the evening or late at night, and arrive, on average, within 30 minutes, Easterbrook has said.

It's worth noting that McDonald's already has well-established delivery services in Asia and the Middle East, where for some restaurants delivery represents 40 percent of sales. In 2016, the burger chain brought in nearly $1 billion in delivery sales globally.

On Tuesday, McDonald's said the company remains on track to offer delivery in 10,000 total restaurants by the end of the year.

Looking at the future of the restaurant industry, delivery has become a key priority, and especially for fast food players.

Companies like Uber, Postmates and DoorDash have proven to be important third-party partners, offering up their drivers and services.

Tech giants like Amazon and Facebook are also beginning to break into the delivery business, as they partner with restaurants like Chipotle and Shake Shack and encourage them to sell from third-party platforms.

By Lauren Thomas  
October 24, 2017 
Source: CNBC.com





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