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Cup of McDonald's Cola Drink with Straw

istockphoto / lenscap67

If no one comes in the store, does the store still need to offer in-person benefits, like free refills? At McDonald’s locations, the answer appears to be no. Although this physical redesign, altering the amenities available in the stores, might save franchises some costs, the restaurant chain cites a completely different reason for removing self-serve cola machines, namely, the changing behaviors of fast food consumers.

Spurred on by advanced technology capabilities, lingering social distancing habits, convenience, and McDonald’s own incentives to encourage more mobile ordering, consumers increasingly rely on drive-thru, remote pickup, and delivery options for their Big Macs and fries. An estimated 40 percent of total sales currently come through digital channels. As a result, fewer people get out of their cars to come to a counter to order, which means the storefronts simply don’t host many diners.

Without customers to serve and appeal to with the promise of free refills on their drinks, McDonald’s finds little justification to maintain the machines. In the past, this option functioned as an appeal for consumers, with little costs to the company. Diners might enjoy “sneaking” an extra cola on their way out the door, but each pour cost the company only pennies. Yet even as McDonald’s assigns the rationale for removing the machines to customers and their altered behaviors, eliminating cola machines does have positive cost implications: Franchises no longer need to devote labor and materials to stocking, maintaining, and cleaning the dispensers.

Along with the removal of self-service soda machines, redesigned McDonald’s are likely to feature much smaller, or even no, dining rooms. Predicted developments promise stores with tiny footprints, maintained by few or no staffers, that allow customers to place remove orders and pick up on the fly. Pilot versions of CosMc stores (hosted by a little known McDonald’s character, an alien named CosMc) will appear in select locations soon. The goal is to insert stores in areas that previously have not been served, because they lacked sufficient space to host a full-fledged restaurant.

For adults who grew up with the promise of in-store playgrounds and nearly unlimited sodas, the redesigned McDonald’s and the tiny CosMcs might not seem like much fun. But considering the behavior of most consumers these days, they also seem like the logical choice for the restaurant retailer.

Discussion Questions

  1. Look up the percentage of digital orders received by other fast food chains. Are they similar? Should other companies be pursuing a redesign similar to McDonald’s?
  2. What are some other cost implications of the discussed redesign options?

Sources: Jordan Valinsky, “McDonald’s Is Getting Rid of Self-Serve Soda Machines,” CNN, September 12, 2023; Danielle Weiner-Bronner, “McDonald’s Teases New CosMc Restaurant Concept,” CNN, July 27, 2023