How does McDonald’s use technology development to lower cost of production?
McDonald’s has teamed up with Echelon corporation in order to improve their kitchen equipment to lower energy consumption and increase efficiency. With Echelon’s i.Lon Internet Server, McDonald’s can receive data on their equipment which lowers labor costs used to gather data. This also allows them to create reports while receiving less data errors. With their “smart kitchen,” McDonald’s equipment can mix with building sub-systems to extend energy management in the entire restaurant.
By lowering the cost of production, McDonald’s is able to lower their prices as well. Though McDonald’s has tested different technologies, Echelon proved to be more reliable and cost-effective. With Echelon’s power line networking technology, McDonald’s can communicate and exchange data through kitchen equipment. This helps manage use of energy, develop improvement applications, and lower maintenance costs McDonald’s smart equipment provides data that meets HACCP requirements of health departments, which save labor costs from reading thermometers and creating reports.
By lowering their own prices thanks to their “smart kitchen,” McDonald’s supply increases as a result. This encourages McDonald’s to open up more restaurants in other places. As a result, more people will be attracted to go to McDonald’s than other fast food restaurant competitors. McDonald’s can be found in 119 different countries worldwide and serve at least 68 million customers per day. McDonald’s currently operates 33,000 restaurants and employing about 1.7 million people.
How has McDonald’s improved their operations for the environment?