McDonald’s Hit by Technology Outage, Disrupting Restaurants Across U.S., U.K., and Asia

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McDonald’s Says System Outages Disrupting Global Stores, Including in Japan, Hong Kong © Provided by The Wall Street Journal

On Friday, McDonald’s encountered widespread technology issues that disrupted operations at its restaurants across the globe, leaving customers unable to place orders digitally or pay with credit cards. The company, headquartered in Chicago, acknowledged the problem and stated that it was actively working to resolve what it described as a global technology system outage. As a result of these disruptions, McDonald’s locations in various countries, including the U.S., Australia, the U.K., Japan, and Hong Kong, faced challenges in serving customers, leading to complaints on social media platforms.

Despite the setbacks, McDonald’s reported that nearly all of its U.S. restaurants were operational and serving customers by Friday afternoon. Throughout the day, restaurant operators in the U.S. noted gradual improvements in their technology systems, indicating progress in resolving the issue. Notably, McDonald’s emphasized that the outage was not the result of a cybersecurity incident, alleviating concerns about potential data breaches.

In Japan, Masao Sato, a systems engineer, recounted his experience at a McDonald’s outlet in Tokyo’s Shibuya district, where he encountered the technology malfunction firsthand. He described how the ordering screen suddenly malfunctioned, preventing customers from placing orders digitally. As a result, some customers resorted to paying with cash, but the situation quickly deteriorated as the store became overwhelmed with customers. Eventually, the management was forced to close the store, leaving customers like Sato frustrated and disappointed. Signs posted on the store’s door attributed the closure to a server outage affecting multiple McDonald’s locations.

The widespread technology issues experienced by McDonald’s underscored the significant impact of such disruptions on the fast-food chain’s operations and customer experience. As the company worked diligently to rectify the situation, affected customers awaited updates and hoped for a swift resolution to the technical problems plaguing the iconic burger chain.

In a message to global operators, McDonald’s disclosed that a global technology outage occurred around midnight U.S. Central Time, attributing the issue to a configuration change by a third-party provider. Although quickly identified and rectified, the outage caused disruptions for McDonald’s restaurants worldwide, impacting operations and digital ordering systems.

In the U.S., McDonald’s owners reported difficulties in opening some restaurants on Friday morning, while others were unable to accept digital orders via kiosks or the app, necessitating cash transactions and manual recording of transactions by managers. Employees at locations in New York and New Jersey also encountered problems with the mobile app during their overnight shift, with reassurances from the company that efforts were underway to resolve the issue.

McDonald’s acknowledged that restaurants coming back online might encounter challenges with opening and closing procedures, with ongoing investigations and efforts to fully remediate the issue. Despite the swift response, the outages persisted into Friday afternoon, affecting point-of-sale systems and services in a significant number of U.S. restaurants.

Some McDonald’s operators in the U.S. advocated for the company to waive one month’s worth of technology fees due to lost sales resulting from the outages. McDonald’s typically charges operators approximately $1,000 in technology costs per location monthly.

These disruptions come at a challenging time for McDonald’s, as the company faces sluggish business in 2024, particularly in international markets like China, France, and the Middle East. Chief Financial Officer Ian Borden noted slow same-store sales growth expectations for the current quarter, prompting promotional deals to drive sales.

Overseas, McDonald’s restaurants in Japan and Hong Kong also grappled with system failures, leading to temporary suspensions of operations. Similar reports emerged from Australia and the U.K., indicating widespread system interruptions across multiple regions.

While McDonald’s assured customers that the outage was not related to a cybersecurity incident, it comes in the wake of a data breach in 2021 that affected some markets, including the U.S., South Korea, and Taiwan. Despite the challenges, McDonald’s remains committed to addressing the issues promptly and restoring normal operations for its global network of restaurants.

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