Technology looms large in restaurant industry

  • 📰 BDliveSA
  • ⏱ Reading Time:
  • 53 sec. here
  • 2 min. at publisher
  • 📊 Quality Score:
  • News: 24%
  • Publisher: 63%

South Africa News News

South Africa South Africa Latest News,South Africa South Africa Headlines

The pandemic has served as something of a fast-forward button to the future, as customers steer clear of dining rooms because of safety concerns

The McDonald’s restaurant in Chicago, the US. Picture: REUTERS/JIM YOUNG

In its Tuesday earnings conference call, McDonald’s said that 90% of its US sales in the quarter ended June 30 were drive-through. That format has long been a cornerstone of the business and was able to remain open even when many of its dining rooms were shuttered, so this is not necessarily surprising.

That delivery didn’t soar to a higher proportion of sales even in this unusual environment makes me sceptical it will ever be a significant part of McDonald’s business. The situation in the quarter was much different at Chipotle, where digital pickup and delivery orders accounted for 61% of its sales. At the same time, though, the company’s restaurant-level operating margin sank to 12%, sharply lower than the 21% it recorded in 2019's second quarter.

The company said that compared with pre-pandemic levels, its digital pickup business is up 140%, greater than the 125% increase it has seen in the delivery segment. It is a good sign that it is seeing greater growth in the more profitable type of transaction.

We have summarized this news so that you can read it quickly. If you are interested in the news, you can read the full text here. Read more:

 /  🏆 12. in ZA
 

Thank you for your comment. Your comment will be published after being reviewed.
Please try again later.

South Africa South Africa Latest News, South Africa South Africa Headlines

Similar News:You can also read news stories similar to this one that we have collected from other news sources.

Despite industry downturn, this SA luxury hotel is set to open new restaurant this week
Source: IOL - 🏆 46. / 51 Read more »