On August 8, 2024, McDonald’s China marked seven years since it stepped into the “Golden Arches” era. Just two days earlier, the company unveiled a new technology R&D Center—a state-of-the-art facility that signals McDonald’s deepening commitment to in-house innovation.
This sleek, seven-story building, situated in Nanjing’s Baijiahui Innovation Community, spans more than 6,500 square meters. It’s not just a symbol of McDonald’s digital ambition but also the nerve center for over 450 tech experts driving the company’s next phase of growth.
According to 36Kr, McDonald’s China plans to invest a hefty RMB 4 billion (USD 559 million) over the next five years in digital R&D. This investment is aimed at enhancing services across three key areas: customers, restaurant operations, and the corporate backbone.
The journey into this new era began exactly seven years ago when McDonald’s forged a strategic partnership with CITIC Capital, CITIC Limited, and The Carlyle Group. This move, dubbed the Golden Arches era, marked the start of a digital transformation that has since been pivotal to McDonald’s rapid expansion in China. The opening of McDonald’s first IT R&D center in Nanjing by the end of 2020 further cemented this commitment.
Over the last three years, the Nanjing center has developed and deployed a range of localized integrated information systems, such as the McDonald’s app, RGM Boss, and cutting-edge digital food safety systems. These innovations are now operational in over 6,200 restaurants across China.
Looking ahead, McDonald’s China is setting its sights on an ambitious target: reaching 10,000 restaurants by 2028.
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Take the company’s development team, for instance. Tasked with identifying and converting around 1,000 potential store locations annually, this process once required a mountain of data. Now, it’s streamlined through a project management tool (PMT) that has significantly improved the precision and speed of new store openings.
“With our system, we ensure that no potential location slips through the cracks,” Zhang Jiayin, CEO of McDonald’s China, told 36Kr. “It continuously updates us on the status of each site, from whether it’s time to accelerate development to early preparations for lease renewals. We’ve become more proactive, and our approach is now finely tuned.”
Today, a staggering 90% of the company’s sales are driven by digital platforms. In a competitive market, this digital-first strategy has sharpened the company’s ability to understand and respond to shifting consumer trends.
“Chinese consumers are constantly evolving,” Zhang said. “We’ve noticed a growing trend toward personalized ordering and a desire for more interactive experiences.”
For example, customers can customize their orders with precise specifications—whether it’s ice or no ice, extra or less ice, pickles or no pickles. The kitchen can accommodate these detailed, personalized requests.
Another fascinating trend is emerging on Xiaohongshu, where users leave notes hoping the “McNugget Hero” will sneak an extra nugget into their orders. This highlights a deeper desire for a personal touch amid the uniformity of fast food. According to Zhang, even within a standardized model, adding these layers of personalization can offer consumers those small, unexpected moments of delight they cherish.
KrASIA Connection features translated and adapted content that was originally published by 36Kr. This article was written by Yang Dian for 36Kr.