TODAY’S TALKER

McDonald’s sees hitch in kiosk model: Some people only use cash

McDonald’s Corp. has pitched self-ordering kiosks as a key part of its plans to boost sales by improving technology and renovating restaurants. But it turns out the kiosks aren’t usable by a significant slice of McDonald’s customers: cash payers.

The Big Mac seller is leaning hard into digital ordering and technology improvements to attract on-the-go customers, but a recent test shows the kiosks may need to be replaced or retrofitted to accommodate cash transactions. About 6.5% — or 8.4 million — of U.S. households don’t have a bank account or a debit or credit card, preventing them from using McDonald’s kiosks that are in about 9,000 domestic locations.

The kiosks, which started being used in the U.S. in 2015, quickly became a focus of recently departed Chief Executive Officer Steve Easterbrook, who said last month that touch screen ordering is increasing worldwide. He noted that diners usually spend more when ordering via kiosk, and said in July that 40% of in-store customers used one in Australia and major European markets.

He estimates that 30% of fast-food customers use cash in the U.S. McDonald’s says that worldwide, 40% to 60% of its diners use cash.

“Lower income people just don’t have access to credit cards; they’re paying with a lot of things in cash,” Gordon said. “Why should they not have the same access to personalization, or to get in and out quickly if there’s a line?”

McDonald’s says the kiosks offer a faster ordering experience and that some cash-paying customers have said they want to be able to use them.