McDonald’s Replaces Cashiers with Touch-Screens

McDonald’s is trying to make fast food even faster. The Financial Times reports that the worlds’ largest fast food chain plans to replace many of the cashiers at its 7,000 European restaurants with touch screen terminals that allow customers to order and pay electronically.

The move at McDonald’s is similar to what many consumers experience in supermarkets, retailers and gasoline stations that have opted for self-checkout to save on labor costs. McDonald’s says the move is about making its restaurants there more convenient and efficient — it’s also clearly about keeping down costs. If the move proves successful, you can bet competitors like Wendy’s/Arby’s (NYSE:WEN) and Yum! Brands (NYSE:YUM) restaurants KFC and Taco Bell will be taking notice.

The decision is being driven by margin concerns. McDonald’s is still growing sales, reporting a 5.7% increase in FY1Q11 in Europe (where the cashier-free order system is being tested) compared to the year ago period. But margins are being eaten up by higher commodity costs – beef and dairy in particular.

Also, consumers everywhere are struggling to pay bills under the weight of rising gasoline and food prices and a Big Mac or McCafe coffee  is quickly becoming an expense many cannot afford as often as they may once have. That may be even more the case now that McDonald’s has said it will raise menu prices to cover rising food costs.

How it works

McDonald's Easy Order touchscreen