San Antonio, Texas – McDonald’s restaurants experienced a significant “technology outage” on Friday, impacting locations across various global markets, including Japan, Australia, and the United Kingdom. The fast-food giant’s reliance on tech systems in the food service industry was highlighted as stores were forced to accept only cash or close temporarily due to the outage. The extent of the outages was not fully disclosed, with a franchise in San Antonio unable to process orders via app or cash even 12 hours after the issue began.
According to a recent regulatory filing, McDonald’s identified potential challenges to its operations posed by technology outages. The company emphasized its increasing reliance on technology systems such as point-of-sale systems that support business operations, including digital and delivery solutions. This reliance was brought to light as the outage was attributed to an unnamed third-party provider during a “configuration change.”
Moreover, McDonald’s acknowledged the risks associated with artificial intelligence tools deployed in their systems, noting that these tools may not generate intended efficiencies and could impact business results. Despite the outage, the company remains committed to its long-term strategy of deepening reliance on technology to enhance efficiencies and overall performance.
McDonald’s has been actively promoting digital tools like mobile apps and kiosks to encourage customer orders, a strategy that proved successful with one-third of sales in the company’s top markets derived from digital platforms in 2022. In a move to further leverage technology, the company announced plans to partner with Google to transition computer systems to the cloud, enhancing the capabilities of their generative AI system to provide hotter and fresher food.
Generative AI already plays a significant role in McDonald’s operations, powering marketing efforts through personalized pitches based on internal customer profiles. Despite the challenges posed by technology outages, McDonald’s continues to innovate and deepen its reliance on technology to drive operational efficiencies and enhance customer experiences.