The technology can understand multiple languages and accents to help speed and simplify order taking at the drive-thru. Acquisition fast-tracks McDonald's digital transformation . McDonald’s, eager to leverage its size to gain an advantage in the competitive fast-food market, on Monday said it plans to acquire Dynamic Yield, a personalization and decision logic technology firm based in New York and Tel Aviv. The menus will also suggest add-on items to customers. McDonald's New Tech is About to Change the Restaurant Industry There's a good reason the brand spent $300 million on its first major acquisition in 20 years. The company used the acquisition as the foundation for the creation of McD Labs, which it hopes will … According to the The Wall Street Journal, the acquisition was valued at more than $300 million and ranks as the company’s largest acquisition in decades. He was referring to how technology has made its way into all aspects of the physical world. Famed venture capitalist Marc Andreessen commented that "software is eating the world." Returns as of 01/14/2021. These acquisitions will help the company stay competitive in a world where tech-enabled concepts like GrubHub and Uber Eats are making headway in the market for the American consumer. The next quarter will see it growing McDonald’s Tech Labs in order to harness acquisitions and grow R&D. McDonald’s has made its third technology acquisition this year after snapping up a firm whose software will enable greater levels of automation between its drive thrus and kitchens. Dynamic Yield is a "personalization and decision logic technology" company. However, as the company leans more into the usage of big data and predictive analytics, expect it to slowly unify its suite of services so it can more effectively leverage the data it collects at the restaurant level and translate that into a better dining experience. We’re focused on continuous transformation. Crain’s New York Business is the trusted voice of the New York business community—connecting businesses across the five boroughs by providing analysis and opinion on how to navigate New York’s complex business and political landscape. Since McDonald’s seldom carries out acquisitions, the purchase of Dynamic Yield shows the company’s desire to leverage technology to speed growth in the fiercely competitive restaurant industry. A menu that suits changing customer preferences and a focus on technology to improve restaurant efficiency are the two key pillars of McDonald’s … Luis is the Founder and Managing Partner of LVS Advisory LLC, a registered investment advisor based in New York City that manages investment portfolios for clients. With the agreement, McDonald’s becomes the sole owner of Dynamic Yield, which is based in New York and Tel Aviv. His investing interests include tech, consumer, and event-driven situations. Because the company is so massive with nearly 38,000 locations in more than 100 countries, the technologies mostly operate independently of each other. The new agreement gives McDonald's a 9.9% stake in Plexure and the exclusive right to use the technology in the quick-service restaurant setting. To send a letter to the editor, please email a message to [email protected]. McDonald’s reached an agreement to buy artificial intelligence company Apprente, a Silicon Valley start-up specializing in voice-based ordering technology. What are your goals for your team and for McDonald’s? McDonald’s tested this technology in several U.S. restaurants in 2018. It has been testing Dynamic Yield in select stores for the past year. It has since divested its stake in the burrito chain. McDonald's has acquired Dynamic Yield, a company that focuses on personalization and recommendation technology, in a move that the company hopes will accelerate its digital transformation. Image source: McDonald's. McDonald’s acquisition set to change drive-through menus McDonald’s has acquired a large tech start-up that will change the look of its menu and drive-through experience. The software sends promotional offers, facilitates mobile ordering, and manages a customer loyalty program, in addition to serving as the basic technology backbone of the mobile app. In exchange, McDonald's is paying the company approximately $3.7 million and offering Plexure greater access to its technology back-end and customer data. 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