Call Centers May Handle McDonald's Orders

[craigdawg]

This is either the dumbest thing I've ever heard of or the most ingenius. What happens if they put someone on hold and forget to pick back up?
OAK BROOK, Ill. (AP) -- McDonald's Corp., the world's largest restaurant chain, is testing the use of remote call centers to handle drive-thru orders in an effort to improve service. http://www.sfgate.com/cgi-bin/article.cgi?file=/news/archive/2005/03/11/financial/f092951S35.DTL

[buryyourbrideau]

figures it would be in oak brook,IL which is a pretty rich suburb of CHI. the first time i was ever there they asked me if i wanted to pay by check, credit card or cash and i seriously like started laughing and the teenage girl gave me a really confused look, i mean seriously why would you want to buy a 5 dollar meal on a credit card or write a check ? :confused:

[PixelFactory]

figures it would be in oak brook,IL which is a pretty rich suburb of CHI. the first time i was ever there they asked me if i wanted to pay by check, credit card or cash and i seriously like started laughing and the teenage girl gave me a really confused look, i mean seriously why would you want to buy a 5 dollar meal on a credit card or write a check ? :confused:

Oakbrook is where McDonalds is headquartered. Per the aricle, they are testing it in the Pacific Northwest.

[Lord Blackadder]

Good lord, what's next? A fully automated McDonald's? (don't laugh)

[virividox]

people my start complaining they cant understand their order being repeated back to them !!!

[PixelFactory]

Good lord, what's next? A fully automated McDonald's? (don't laugh)

My dad worked at corporate as an electrical engineer during the 70's and early 80's. They were working on touch sensitive displays for the drive thu before he was downsized. It wouldn't suprise me if they implemented in the future.

[Raid]

"If you're in L.A. and you hear a person ... with a North Dakota accent taking your order, you'll know what we're up to," McDonald's Chief Executive Officer Jim Skinner said during a presentation to analysts Thursday in New York. under his breath he was heard to say... were training our call centre staff in India to speak with a Dakota accent. :rolleyes:

people my start complaining they cant understand their order being repeated back to them !!!
.... yeah somehow I'm feeling this is related to my comment above. ;) :D

[rainman::|:|]

McD's has tested several machines over the years that are capable of basically producing any sandwich, it's sort of like the U-scan checkout registers at stores. The long-term goal seems to be totally automated McDonalds, I remember reading articles a few years back that claimed McD wants it's staff cut down to a stocker and a robotic technician... two shifts, each store would employ 4 people total. Guessing that would cut a LOT out of their overhead, enough to more than pay for the machinery...

FWIW, I hope they at least hire someone to randomly spit in the food, otherwise it just won't be mcdonalds.

[Abstract]

Its stupid because its very difficult to get the order wrong, especially in Canada. They list everything you ordered on a screen. Maybe they should think about hiring competent people who can put a Quarter Pounder in a bag when the order screen flashes "Quarter Pounder".

Sounds more like human error than an error in the way their system worked.

[Lacero]

LOL. After watching Super Size Me, I don't think I'll be visiting McDonald's or any fast food joint for a long time. :D

[OldManJimbo]

This has been in practice since at least 2003 - here's a newsletter I wrote my clients on the topic in February of this year:

Market Intelligence - February 2005


"Finally, Fast Food Over the Internet"

In my consulting practice, clients depend on me to help them "find new ways to do things" and I am always on the lookout for examples of companies doing things differently (or doing different things). I find that stories of "other people" coloring outside the lines can spur my clients to think of ways they can take similar steps in their operation. When we see someone else do something out of the ordinary, it gives us permission to break the rules, too.

So - imagine my delight at reading of a new application of technology being employed by fast food restaurants. High tech and fast food - two of my favorite things.

Savvy fast food operators have started using broadband Internet connections to set up remote order-taking centers. At fast food drive-ups all across the country, hungry folk are giving their orders to an order-taker sitting in front of a computer screen on the other side of the country.

A McDonald's franchise owner started using the concept in 2003 at his 15 Colorado stores and Hardee's, the St. Louis-based burger chain, began a test in December of 2004. The Dallas Morning News says Pizza Hut and Chuck E. Cheese are migrating local telephone calls to national centers. One firm even provides phone center people with information on landmarks near each store so agents can answer questions from local callers.

So - what can you do with this?

I could suggest that you "look for ways to apply technology in a similar*manner*in your business." But that would be far too easy - and obvious.

Here is what I want you to do - At your next staff meeting, share this story with your managers and ask these questions:

1 - What is motivating restaurant owners to install this new technology? Is it a way to lower labor costs? Improve customer service? Reduce errors? Something else?
2 - What other business models could make use of an idea like this?*
3 - Are you surprised that fast foodies are doing this? Is there someone in your industry who might be the next to try a similar application?

The purpose of the discussion is not to examine the fast food industry or to marvel at a new use of technology. I want your team to "practice the future." I find that organizations who collectively spend time imagining what the future might look like are much more able to contend with change as it develops around them.

Let me know how it goes.

Jim Seybert
http://www.jimseybert.com


---

[KD7IWP]

I've worked there for four years now. People pay us with rolls of coins, travelers checks, regular checks, cash, debit... only thing I haven't gotten yet is a money order or cashier's check :-) I agree that it is weird for a $5 order, but lots of others don't think that. The best is when they open their purse and dump a load of change on the counter and take 5 minutes to count it. Or you get an obese woman that comes in and takes 5 minutes to order, then reaches down her shirt and pulls out a fat wallet. That was one of the most intimidating moments of my life.

[acedickson]

It won't be too long before your order is totally automated, i.e. the automated phone systems with voice recognition. It'll display your order, as it already does, on the displays. That'll cut out the call center use.

[stubeeef]

FWIW, I hope they at least hire someone to randomly spit in the food, otherwise it just won't be mcdonalds.

ROFLOL, Now that was funny, and purely cynical! :p

[stubeeef]

Its stupid because its very difficult to get the order wrong, especially in Canada. They list everything you ordered on a screen. Maybe they should think about hiring competent people who can put a Quarter Pounder in a bag when the order screen flashes "Quarter Pounder".

Sounds more like human error than an error in the way their system worked.

That is the problem at one the kids make me drag them through. They have a 100% health dept score, but can't get the right food in the bag. I am now the jerk holding up the line inventoring the bag while the window person rolls their eyes at me. I catch a mistake on one in three, then I roll my eyes back!

It won't be too long before your order is totally automated, i.e. the automated phone systems with voice recognition. It'll display your order, as it already does, on the displays. That'll cut out the call center use.

yes and if they automate with windows they will get rid of 2 cooks and add 4 IT people.

[wdlove]

I heard about this on a new magazine program. It sounds very efficient. The idea is to allow was McDonald's store to just focus on serving the customer. According to them is allows for faster service to the customer. Most didn't even realize that they were speaking to an order person hundreds of miles away.

[Lacero]

"Would you like curry with your fries?"

In an effort to save on costs, McDonald's is using India's cheap labor force to handle customers' orders. :D

[Apple Hobo]

figures it would be in oak brook,IL which is a pretty rich suburb of CHI. the first time i was ever there they asked me if i wanted to pay by check, credit card or cash and i seriously like started laughing and the teenage girl gave me a really confused look, i mean seriously why would you want to buy a 5 dollar meal on a credit card or write a check ? :confused:

I'd love to pay 20%APR on a Big Mac! :rolleyes:

[stubeeef]

I'd love to pay 20%APR on a Big Mac! :rolleyes:
ya but it only cost about $.06 per month at $3.00/bigmac. One a day for a month = 30x3=$90.00 or a min payment of $1.80! :p

[Xenious]

figures it would be in oak brook,IL which is a pretty rich suburb of CHI. the first time i was ever there they asked me if i wanted to pay by check, credit card or cash and i seriously like started laughing and the teenage girl gave me a really confused look, i mean seriously why would you want to buy a 5 dollar meal on a credit card or write a check ? :confused:

I use my credit card (actually a check card) everywhere. It annoys me to have to get cash to go to McD's (and pay a nice ATM fee) when almost all other restaurants take visa/MC. The point would be to not have to carry cash, not to defer the $5 meal for 30 days and pay it off. Heck I use my check card at work to buy a soda in the cafeteria. ;)

[Makosuke]

I really don't get this. As screwed-up as I find the whole concept of the drive-thru at McD's, how on earth does paying somebody five states away to speak through an unintelligible microphone work better than just having a freakin' touch screen with the menu on it? It's not like McDonald's has such a large and ever-changing menu that people need an order-taker to explain what's on a Big Mac. Maybe it really is more efficient to have a person on the other end, but I'd much rather just push the "McChiken" button three times than have to explain it.

Of course, what I'd actually rather do is walk into my local burger chain and watch them grill beef from grass-fed cows that live 30 miles south of here after I place my order. I might pay 50 cents more for the burger, but it tastes a whole lot better and the person making it is less likely to have peed on the vaccum packed lettuce.

[OldManJimbo]

I really don't get this. [H]ow on earth does paying somebody five states away to speak through an unintelligible microphone work better than just having a freakin' touch screen with the menu on it?

Quite simple actually - by centralizing their operation, they can spread the expense over a larger base and hire people who are trained to up-sell customers, as in "would you like Fries with your order." The incremental boost in sales will more than pay for the infrastructure enhancements and higher wage paid the order takers.

Case studies have shown that customers at restaurants using this remote system are more satisfied with the experience because the person taking their order had excellent communication skills.

Be careful and try to avoid allowing your personal preference for quality food [with which I agree] to cloud reasonable consideration of a good idea. You may not like McD's food - can't blame you - but this has nothing to do with their food and everything to do with using technology to improve customer service.

[craigdawg]

Case studies have shown that customers at restaurants using this remote system are more satisfied with the experience because the person taking their order had excellent communication skills.
This is still not good enough. I will not be satisfied until they deploy mind-probing robots that can take my order telepathically. :D

McRobot: "You know you want to Super Size it craigdawg. It's only $.40 more. Go for it man."

craigdawg (thinking to himself): "Alright! Get out of my mind. Stupid mind-probing robot."

McRobot: "I heard that."

[mkrishnan]

"Would you like curry with your fries?"

In an effort to save on costs, McDonald's is using India's cheap labor force to handle customers' orders. :D

Hey, if they had curry, I might start eating there again! :eek:

[Inspector Lee]

There was a McDees in Leslie, MI a few years ago that had some kind of device set up at each table where you either spoke your order or touch-screened it. I think they were product-testing. If they can set something up like a u-scan which takes cash, plastic what have you and spits change, it eliminates the counter people which saves $$$.

[yg17]

So, I guess its cheaper to pay any long distance fees and an employee in India to take your order than it is to pay an employee minimum wage to take your order at that location. :rolleyes:

[MongoTheGeek]

My dad worked at corporate as an electrical engineer during the 70's and early 80's. They were working on touch sensitive displays for the drive thu before he was downsized. It wouldn't suprise me if they implemented in the future.

Sheetz, the local Gas Station/Quikie Mart chain has touch screens inside to order the food. You pick exactly what's going to go onto your burger, sub, death dogs. If you have something really bizarre you hit a special request button. They are going to start moving them out to the Gas pumps so when your done pumping gas the food would be ready.

[MongoTheGeek]

So, I guess its cheaper to pay any long distance fees and an employee in India to take your order than it is to pay an employee minimum wage to take your order at that location. :rolleyes:

The only places people make minimum wage is in economically depressed areas. I've seen McDonalds hiring at 7.50 around here. One place I saw them hiring at $10.

When people look to outsourcing they should try outsourcing to Appalachia.

[Little Endian]

What Mcdonalds is doing is nothing interesting nor is it a novel idea. Pizza Hut has been using and or experimenting with dedicated Call centers for at least the past 5 years.

All these ideas are just ways for the Fast Food/Quickserve Franchise industry to cut costs to prepare for the inevetible. What is that inevitable? Well at the current rate of the economy most of these Franchised Quickserve Restauraunts will find it very diffucult to survive. Diffucult as in the labor pool of reliable and competent employees that they can pay at minimum wage will shrink and continue shrinking.

The Quickserve Franchise Industry knows very well that they cannot compete in wages and still provide low prices to customers. So they are left with two options raise prices dramatically across the board or cut labor costs. The later is more likely as I doubt Americans are willing to pay $10 for an extra Value meal or have their 99cent menus taken away from them.

For a long time the industry has found and treated it's employees as expendable but it is soon becoming the other way around where Franchises are faced with treating employees better or loosing them in conjunction with an overall diminishing labor pool. The key here is the buying power of minimum wage is diminishing rapidly and the industry is faced with either paying people much more than minimum wage which would mean raise prices dramatically or find ways to eliminate labor.

Too put it simply every year the percentage of College graduates increases and inflation is far out running even the incomes of well educated professionals so imagine what it's like on the minimum wage end of the spectrum? Mcdonalds and the rest of the Franchised restauraunt industry has been paying pretty much the same amount for the past 20 years. Adjusting wages to the CPI is ludicrous when calculating wages at the low end of the spectrum.

[Little Endian]

The only places people make minimum wage is in economically depressed areas. I've seen McDonalds hiring at 7.50 around here. One place I saw them hiring at $10.

When people look to outsourcing they should try outsourcing to Appalachia.

Exactly, that is the trend we are seeing. Mcdonalds and it's likes are being forced into a position to pay people signifigantly higher than minimum wage. The Fast Food industry knows they can't sustain that and still sell their food at prices people expect. Many people don't quite understand how hard it is to find good people to work in places like Fast Food. Heck if you think about it 90% + of the working American Population would still not even consider a job at a place like McDonalds even if the starting pay were well above $10/hour.

[OldManJimbo]

So, I guess its cheaper to pay any long distance fees and an employee in India to take your order than it is to pay an employee minimum wage to take your order at that location. :rolleyes:

From what I've read, the call centers are in metro US locations. One of the primary benefits for using call centers has been the opportunity to hire people with better-than-average language skills.

Too bad some of the high-tech firms don't adopt this principal. One of the [many] reasons I finally decided to switch from PCs to Mac was the horrible quality of DELL's overseas call center.

[pivo6]

This is either the dumbest thing I've ever heard of or the most ingenius. What happens if they put someone on hold and forget to pick back up?
http://www.sfgate.com/cgi-bin/article.cgi?file=/news/archive/2005/03/11/financial/f092951S35.DTL

One of the McDonald's in my town already has been using this for the past year.

You place your order at the drive thru, and someone in Colorado answers and takes your order. You then pay and pick up per usual.

Inside, you sit down and place your order over the telephone to the same call center, and then someone from the "restaurant" brings your order and takes your money.

It's not any better or worse. It's McDonalds, so my expectations are pretty low to begin with.

[Lloyd1994]

Oakbrook is where McDonalds is headquartered. Per the aricle, they are testing it in the Pacific Northwest.

The minimum wage here in oregon is one of the highest in the nation; that is probably the motivation for this program. A friend told me a few weeks ago that he went to a Portland-area Mickey-Ds and the person taking the order had deep southern accent but the cashier didn't. I didn't believe him that companies are outsourcing to this extent, but maybe I should have...

[noel4r]

Less jobs for Americans. This really needs to stop.

[noel4r]

Maybe they should outsource managerial jobs overseas too and see how they like it and while we're at it hire somebody overseas to be the CEO and CFO too.

[MongoTheGeek]

Less jobs for Americans. This really needs to stop.

These jobs are probably going to Americans. Just ones in different places.

Wasn't there a prison that ran a phone bank?