TCS signs deal with McDonald's Philippines to digitise ops at 760 outlets

Tata Consultancy Services (TCS), India's largest IT services company, said on Wednesday it has signed a two-year partnership with McDonald Philippines to upgrade technology used by the fast-food chain.

The deal size was not disclosed. TCS signed the agreement with George Yang-led Golden Arches Development Corporation (GADC), the master franchise holder of McDonald's in the Philippines. The partnership, TCS’ first with the fast-food chain in the Asia Pacific, will "standardise" and "digitise" IT operations of more than 760 McDonald's restaurants in the Philippines.

TCS will implement an advanced upgrade of McDonald’s IT systems in the Philippines to the Cloud. It will upgrade GADC's IT infrastructure to enable "better insights, improved decision-making, and optimised operational performance".

“This partnership with TCS is another step in our continuous digital transformation. The implementation of SAP S/4HANA on RISE will provide us greater agility through data-driven insights, enabling us to continuously improve our customer and employee experience,” said Margot Torres, managing director at GADC, referring to a Cloud computing system.

The benefits of the upgrade include increased efficiency and optimised operating costs, digital transformation and innovation, enhanced franchisee experience driving stakeholder loyalty, improved process optimization and workforce productivity. Through the SAP Business Technology Platform, TCS will provide development and integration services for app development, automation, data analytics, and artificial intelligence.

TCS will integrate other SAP capabilities to ensure comprehensive data management and automation solutions tailored to GADC’s needs. That work will improve the fast-food chain’s financial, materials, enterprise asset and project management, sales and distribution, and user interface.

"We are excited to support Golden Arches Development Corporation in their continuous digital transformation journey. Implementing SAP S/4HANA on RISE will empower them with cutting-edge technology, ensuring McDonald’s stays ahead in the fast-evolving food service industry," said Rudy Abrahams, president and managing director, SAP Philippines.

TCS said the partnership marks its growing presence in the Philippines, where it has been since 2008. The company has more than 5,000 employees in the country and supports customers in telecom, banking and finance, real estate, and airlines.

McDonald’s is one of the world’s largest foodservice retailers with more than 42,000 locations in over 100 countries in 2023.