People are eating at home: Optimizing delivery service at McDonald‘s

"We are pleased at how successful we are in the restaurants where we offer delivery service,” says Rudi Röder, Director Delivery at McDonald's Deutschland LLC. "And we see enormous growth potential here: Not just due to market growth, but especially nationwide presence. Thanks to the presence of a McDonald’s delivery service. The more guests to whom we can offer delivery service, the more market potential we can exploit.”

McDonald’s, well-known as the world's largest fast-food chain, has a very heterogeneous guest structure. Families, but also teens & tweens and working adults are important target groups. Sociodemographic data are an important tool here to determine influencing factors such as household and age structure, etc.

With regard to location planning for the delivery service, two aspects are important to Röder: "Speed and quality!” To optimize the delivery service appropriately, the company initially calculated polygons per restaurant. These showed the size of the delivery area and the population.

Next came the calculation of drive-time polygons: And from this, the specific potential for delivery areas depending on various vehicle options and within defined service and quality criteria. The capacity planning then provided information about what delivery service capacities, that is, drivers and vehicles, would be needed on-site in order to guarantee these standards all the time. Spatial data paired with a professional geographic information system (GIS) made an important contribution to answering these questions: First as a service, later when McDonald's used GIS software itself, plus specialized advising and training.

Röder sums things up: "Decisions for both the guests and the company must be made on a solid basis. PTV’s solutions and advising give me the opportunity to analyze and use spatial data in goal-oriented fashion. That's why I’m looking forward to further cooperation with PTV.“

Read the whole interview here.

With the concept of our own delivery service, we have created the basis for being able to offer this service to more and more customers. Here, professional spatial data, GIS, and very good advising were extremely important.

Rudi Röder Director Delivery at McDonald's Deutschland LLC

The Results

Spatial data are indispensable when trying to decide where offering delivery service makes sense.

The deployment of a professional geoinformation system (GIS) enabled an analysis using sociodemographic criteria and provided information about anticipated order potential.

An investment in the future with global increasing demand for online food delivery.

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