The importance of Big Data Analytics within the fast food industry

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 In this weeks blog we are going to look at Big Data Analytics and how its being used as a key marketing tool within the food industry - focusing on fast food.

So first of all, lets have a look at what's meant by 'Big Data'

Big data is defined by the Oxford English Dictionary as 'Extremely large datasets that may be analysed computationally to reveal patterns, trends and associations, especially relating to human behavior and interactions'. Big data can be human generated (deliberately created by a person) or machine generated.

 Big Data may be available to your organisation in-house, (through, for example, your online channels or the various loyalty cards or scanners you may employ in the course of your business). It can also be purchased through third party vendors. Big Data Analytics are used to glean insights from this data, which you can then use for the benefit of your business.

So how are the fast food chains collecting / accessing this data, and how are they using it?

An excellent article by  futurist Bernard Marr illustrates how pizza giant Dominos are using Big Data Analytics to personalize their customer experience. Food can be ordered across multiple platforms (website, socials, smart watches, Tv's etc.). This results in a large amount of useful data being generated. Additional third party data is added to the mix and this is ultimately used to personalize the customer experience. 

"We have the ability to not only to look at a customer as an individual and assess their buying patterns but also look at the multiple customers residing in a household....This means that individual customers or household can be presented with totally different presentation layers than others - different coupons and product offers - based on statistical modeling of customers fitting their profile"

- Dan Djuric, VP Enterprise Information Services at Dominos. 



 McDonalds also use big data to optimize their customer experience. One focus they have is optimizing their drive through. By using big data analytics, they can predict what times will be busy and allocate more staff to meet this demand. The result is that the customer does not experience frustrating wait times and is more likely to return. Dynamic menu boards are also another application. According to Wired, 2019 menu items displayed can be linked to historical sales data, time of day, events in the area, weather, traffic - again attempting to better anticipate and meet the customers needs.




Clearly the potential for using Big Data Analytics in the fast food industry is immense. Indeed, the examples above are only a drop in the ocean in terms of how the insights gained from the data can be used. Ultimately, companies will need to embrace these new technologies if they want to gain competitive advantage within this market.

I hope you enjoyed this weeks blog, please feel free to comment below!
Suzanne Mc Cabe


Credits: 

Bernard Marr, 2021,  https://bernardmarr.com/dominos-data-driven-decision-making-at-the-worlds-largest-pizza-delivery-chain/

Software Advisory Service, 2019, https://www.softwareadvisoryservice.com/en/blog/how-bi-and-big-data-is-essential-to-mcdonald-s-growth-strategy/

Wired, 2019, https://www.wired.com/story/mcdonalds-big-data-dynamic-yield-acquisition/

Oxford English Dictionary, 2022, https://www.oed.com/



Comments

  1. CBOBJanuary 29, 2022 at 8:48 AM

    Suzanne, I really enjoyed this post. The explanation of Big Data and how it may be used is clear and defined and actually makes really good sense. I like the way you further explained the use of data analytics by McDonalds specifically relating to their drive-thru i.e. staff requirements, etc. It really shows that information collected about us, the customer, is imperative to a more satisfying customer experience - perhaps in this case a smoother and faster drive-thru experience! It's all cyclical, potentially the more they know about us the better the service! It really begs the question about how much information is too much when it comes to us sharing our data with large corporations like McDonald's....food for thought indeed!
    Colette Breen-O'Boyle

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  2. DavidJanuary 30, 2022 at 10:38 AM

    Suzanne what a very interesting read - certainly gave me alot to think about in terms of Big Data. I really like the way how you explained the uses of Big Data in a clear and logical way. It is really interesting to read how chains are collecting analyzing and actually using their data for the benefit of the business. Having seen Dominos advertising this really does make sense and gives them a really strong competitive edge to ensure they get repeat purchases and keep their loyal customers. How Mc Donalds use Big Data is also very interesting and must be so helpful so staff rostering to ensure there are no delays and that they live up to the fast food traditional offering. Overall reading about all of this has made me hungry... I am away to order some fast food.... lucky for them they will collect some big data.

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  3. What Suzi ReadsJanuary 30, 2022 at 11:05 AM

    Thanks for a great post Suzanne, you sum-up and explain what Big Data is in a clear and articulate way that is easy to understand, especially with using your examples of the fast food industry such as Dominos and McDonalds. Everyday delivery services are leading the way with Big Data to make simple concepts like ordering food a personal and easy thing to do. Your quotes used within your blog post are relevant and interesting, and your link to other articles is also very helpful and insightful to find out more information.
    Suzanne Earley

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