McDonald’s Corp along with franchisees are planning to spend as much as $390 million to update 550 of their restaurants in California with the changes being completed by the end of 2019.
McDonald’s will modern dining rooms, install new digital menu boards, as well as provide self-ordering kiosks inside restaurants amongst other aesthetic improvements.
The remodeled counters and kiosks will provide for a bigger table service, in which workers at McDonald’s bring the food to their customers.
The changes, which are scheduled to be announced on Tuesday, are part of the company system wide upgrade of the majority of McDonald’s nationwide that will have a cost of as much as $6 billion to the company and franchisees.
These changes will not result in any job losses, said the Golden Arches and its franchises. Some shifts in the workers’ duties will take place, as employees who have always been behind the counter will now be out front engaging with the customer on a more personal basis.
McDonald’s Southern California operations received a head start on the modernization plan. In California, there are close to 500 restaurants across the state have been upgraded during the past two years.
The 500 locations that will be modernized under the latest announcement by the company are in addition to the other group.
CEO of McDonald’s Steve Easterbrook told analysts last January that the new program, which is called Experience of the Future, was receiving excellent feedback from their customers.
The new upgrades are part of the bid by the chain to maintain growth in sales in a highly competitive fast food industry.
The company earlier in 2018 rolled out its latest version of the Dollar Menu, with items that cost $1, $2 and $3 as a way to stem its decline in customer traffic.
The company said that despite a drop in traffic, same store sales in the U.S., or sales in its locations that have been opened at least 13 months, continued to increase, and have climbed by 2.6% during the second quarter, in comparison with the same period just one year ago.
McDonald’s in all has 37.000 restaurants across 120 countries with 90% run by franchisees. In the U.S. their restaurants serve up to 25 million people daily. In 2017, revenue including that it receives from franchisees reached $22.8 billion.