McDonald’s Corporation (MCD), Starbucks Corporation (SBUX): How Restaurants Are Using Technology to Drive Business

These moves are paying off. In addition to driving more traffic to Starbucks Corporation (NASDAQ:SBUX) mobile and desktop sites, the Starbucks card app also drives repeat visits  In fact, the mobile version of the Starbucks card now generates more than 3 million transactions per week. Today, the java giant’s success is prompting other restaurant chains to create mobile payment apps.

McDonald’s Corporation (NYSE:MCD) jumped on the technology bandwagon earlier this month when it began testing a mobile payment app in select cities including Salt Lake City and Austin, Texas. The fast-food chain’s new app lets customers place orders and pay on their smartphones for pickup in stores, curbside or at drive-thru windows, according to Bloomberg. Furthermore, similar to Starbucks Corporation (NASDAQ:SBUX), McDonald’s Corporation (NYSE:MCD) new mobile platform also includes a loyalty program to encourage repeat visits.

Meanwhile, in Asia, the world’s largest burger joint is serving up tableside technology with its Happy Table. Using near field communication, tables inside a McDonald’s Corporation (NYSE:MCD) restaurant in Yishun, Singapore, are transformed into “McDonald’s Land” when you hold an NFC-enabled smartphone over them. This is a big draw for families with young kids. And since the technology is pretty simple to install, we could see McDonald’s Corporation (NYSE:MCD) roll out this technology in more locations around the globe.

The reasoning here is simple. For casual-dining restaurants such as Chili’s and Applebee’s, offering tableside tablets puts them in control of the customer experience. It also gives them a platform to upsell guests on desserts or cocktails that they might otherwise forgo. Mobile offerings, on the other hand, provide added convenience for the customer, while helping the company grow its loyalty base. Importantly, all of these options enable restaurants to collect data and information about their customers. Technology moves the businesses forward.

The article How Restaurants Are Using Technology to Drive Business originally appeared on Fool.com and is written by Tamara Rutter.

Fool contributor Tamara Rutter owns shares of Starbucks. The Motley Fool recommends McDonald’s and Starbucks. The Motley Fool owns shares of McDonald’s and Starbucks.

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