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Expansion on the menu at McDonald’s UK and Ireland: the retail technology week in numbers — Retail Technology Innovation Hub

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3…Over the next three years, Ingka Group, the largest Ikea franchisee holding company, will invest ~€300 million into the Korean market. Ikea South Korea has used €11 million to boost the fulfilment of online orders in stores and try out different store formats.

It has implemented automation solutions in its Giheung store.

This involves the use of wireless controlled robots to store products in optimised locations. Upon receiving an order, these robots pick the products and transport them to ports where co-workers are stationed.

This reduces the manual labour of walking and picking for co-workers, allowing them to focus on quality and other related tasks.

The picked products are then moved to the automated packaging system, where a 3D scanner creates boxes that fit the product size, and the system automatically handles cutting, taping, weighing, and attaching invoices.

The new technology can process approximately 2,000 orders per day, and can pack 300 boxes per hour.

It also supports sustainable efforts by optimising energy and using existing stores. Ten robots use the same power as one vacuum cleaner, according to Ikea. The automated packing solution creates custom sized boxes from FSC certified cardboard.

200…McDonald’s is set to open 200 stores in the UK and Ireland. The expansion, over the next four years, will create 24,000 new jobs and comes as the company struggled to drive growth in the first half of the year.

Susannah Streeter, Head of Money and Markets, Hargreaves Lansdown, says: “Expansion is on the menu for McDonald’s, as it eyes fresh opportunities amid squeezed consumer budgets. Opening new restaurants to lure in new customers, rather than relying on people ordering more frequently from existing outlets, appears to be its recipe for success.”

“On a like-for-like basis, sales were down 1% at the half year mark, showing just how tough it is has been to persuade customer to spend more at their local fast-food joints. It’s investing in putting more value offerings in the mix, but despite its huge scale it’s still facing some challenging trading conditions.”

She adds: “The company has already flagged that it expected new openings to make a 2% contribution to restaurant takings by the end of the year and it’s clearly set on accelerating that strategy in the years to come.”

“The bias in openings towards franchised operations should help margins once the stores are opening at full throttle. Expect investment too in online services, deliveries and drive thrus, as consumers are still demanding an even more efficient and convenient operation from this giant in the fast food world.”

$2.5 million…Woolworths Group is working on a deal to acquire Takeoff Technologies’ assets for $2.5 million.

The provider of e-grocery fulfilment solutions filed for Chapter 11 earlier this year with a plan to seek buyers for some or all of its assets.

The Woolworths Group news was broken on LinkedIn by Brittain Ladd, a supply chain consultant and former Amazon executive, who cited unnamed sources.

Ladd commented: “There are still details being worked out. Note: Woolworths DID NOT buy the company Takeoff Technologies – they only acquired its assets. Takeoff Technologies is effectively out of business.”

He added: “I’m not surprised that the Woolworths Group was the winning bidder as they plan on continuing to utilise Takeoff’s micro-fulfilment centres to fulfil online grocery orders.”

100%…Caffè Nero has become Octopus Energy’s biggest business customer, sourcing 100% green electricity to brew coffee.

The retailer is switching more than 630 stores in the UK to Octopus’ Electric Match tariff.

The Caffè Nero Group’s energy will be sourced from three British solar and wind farms in Yorkshire, Wales and Lincolnshire, which are managed by Octopus Energy’s generation arm and enabled by its platform Kraken.

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