Next Gen QSR Concept Evaluation
McDonald’s developed three prototype test restaurants to address a range of emerging trends. The Halverson Group evaluated a number of areas including new store designs, customer behavior within the new designs, new merchandising elements and operational efficiencies both in the restaurants and the drive though. A mix-method approach was used which included contextual interviews, mobile eye tracking, and video ethnography.Recommendations for improving the many elements of the test restaurants were given. A “customer point-of-view” section was provided that described customer behavior during each stage of their visit and recommendations for improvement. Additionally, a “deep-dive” was performed on key merchandising elements within each stage, such as the kiosk, interrupt panels, side panels, navigation signs and menu boards.
Drive Thru Inaccuracy Deepdive
Weak sales had plunged McDonald's stock price down to a 7-year low. Leadership called for a multi-million dollar investment to reverse the trend and regain industry status. Energy was growing around solving customers’ top complaint- inaccuracy of orders received. Many solutions had been proposed, but none were driving the desired results. Using data analytic expertise, Halverson mined over 5 million customer feedback records to better define the customer’s perspective on inaccurate orders. With strong client partnership, Halverson established buy-in to dig deep into the problem to pinpoint the root causes of inaccuracy. Using cameras and microphones in carefully selected restaurants, thousands of transactions were captured from beginning to end (order to delivery), coded, and analyzed to determine root causes and the context of the inaccuracies (e.g., day part, staffing levels, types of orders, employee training levels). Halverson Group established a true baseline of inaccuracies, which was significantly higher than previously detected through secret shops that served to drive improvement targets. Analytic results indicated that the cause of most inaccuracies occurred not where expected, and not where most solutions had been targeted. Additional analysis provided deeper insight around the very specific conditions under which these inaccuracies were more likely to occur. Three solution criteria were established to guide innovation efforts. Significant investment was made in targeted solutions and today McDonald's stock is performing exceptionally well.
Will McDonald’s drink Starbuck’s latte?
Is it any surprise McDonald’s has brewed itself boldly into the coffee business? The McDonald’s menu has evolved dramatically since itsfounding days in the 1950s, back when it was a simple spot to get a burger, fries and a drink. The company has adapted to shifting consumer tastes, wants, and demands, and has become a major player at breakfast, in chicken, in snacks, salads, and more. There have been a few flops along the way, but in the last six years, McDonald’s menu innovations, better service, and improved atmospherics, have pulled in new customers and boosted profits. Now, thanks largely to Starbucks, Americans now crave fancy coffee drinks, and want them for breakfast, in the afternoon, and even after dinner. It’s no surprise McDonald’s is seeking to capture all these newly evolved coffee cravers. McDonald’s mochas, lattes, and cappuccinos have gotten positive buzz; even people who prefer Starbucks have given the McDonald’s drinkspretty high marks. And coffee drinkers who get their caffeine fix at McD’s can pocket the savings over the same drink at Starbucks. In recessionary times, that’s a powerful advantage. One survey found that 60% of consumers will trade to McDonald’s if the coffee drinks are cheaper and made faster. There’s also the convenience factor – you can grab a latte while picking up a happy meal for your kids, in a part of town Starbucks hasn’t yet hit, or on a road trip. Starbucks is fighting back against the McCafe invasion with an ad campaign focusing on quality adherence; they’re also experimenting with a breakfast value menu and one dollar coffee. However, we’re betting plenty of consumers will choose McDonald’s premium coffee along with its iconic food offerings over coffee at Starbucks accompanied by its made-off-premise bakery items and microwaved sandwiches. On the day ...
