Question

In June, 2018, McDonald’s announced that self-service ordering kiosks would be in all 14,000 of its stores by the end of 2020. Please discuss in terms of what it means to the revenue cycle at McDonald’s and 3 impacts of installing this type of technology. Other articles can be used besides this one, if desired.

need to be at least 200 word

Answer 1

During oct-nov 2018, It was reported that McDonald's beats revenue estimates. So it is pretty clear that revenue was high after installing these kiosks.

Now lets talk about 3 impacts of installing this technology:

Impact 1

Heavy capital expenditure would be required. why? well McDonald's need to buy these kiosks (hardware) and softwares as well. This also means cash outflow for investing activities would be high. For example if MacD has 100 $ and it wants to invest whole amount for expansion, now they need to subtract the amount they would be investing in kiosks systems.

Impact 2

Long term cost saving as a result of lower costs for human resources. In simple language, it means that with time the consumers would be more friendly with kiosks, so over long term time period, they could lower the number of employees.

Impact 3

High associated risk as there are many areas where consumers still do not prefer such kiosks where there could be many reasons. If consumers do not like this, the technological investments would not give cost and time saving results. Success of kiosks should also depend on the type of population and demography. Some markets still does not prefer technology as they believe in the "HUMAN TOUCH" while ordering.