McDonald’s Philippines partners with TCS to upgrade IT infrastructure

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Golden Arches Development Corporation (GADC), the master franchise holder of McDonald's in the Philippines, has partnered with India-based technology giant Tata Consultancy Services (TCS) to modernise the IT landscape for its network of more than 760 restaurants.

The two-year collaboration is TCS’ first alliance with the fast-food chain in the Asia Pacific region, and aims to standardise and digitise operations through a cloud-based system.

TCS will undertake a comprehensive upgrade of McDonald's existing IT systems in the Philippines to SAP [systems, applications and products] S/4HANA on RISE, leveraging its expertise in SAP-led transformations.

The enhancement is expected to yield improved decision-making, enhanced insights and optimised operational performance for GADC, which is led by George Yang.

GADC managing director Margot Torres said: “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.”

McDonald's, a global foodservice giant with more than 42,000 locations, largely operates through independent local franchises, with GADC a growth driver in the Philippines, due to its commitment to digital transformation, such as IT landscape standardisation.

The latest IT upgrade is anticipated to bring benefits including reduced operating costs, increased efficiency and a push towards digital innovation.

It will also enhance the franchisee experience, fostering stakeholder loyalty, and is expected to improve process optimisation and workforce productivity.

TCS’ role extends to future-proofing GADC's processes in support of its expansion plans.

Utilising the SAP Business Technology Platform (BTP), TCS will offer a suite of services including app development, automation, AI and data analytics.

TCS Philippines country head Shiju Varghese said: “By leveraging the advanced capabilities of SAP S/4HANA and the innovative potential of SAP BTP, we aim to enhance McDonald's operational efficiency and customer experience, for business innovation and excellence.”

The integration of additional SAP capabilities will further GADC's proficiency in key operational areas such as financial and materials management, enterprise asset management and sales and distribution.

SAP Philippines president and managing director Rudy Abrahams added: “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. This collaboration represents a significant milestone in driving innovation and operational excellence.”