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MCDONALD'S AWARDS $300M CONTRACT TO OLIVETTI

 MCDONALD'S AWARDS $300M CONTRACT TO OLIVETTI
 NEW YORK, May 5 /PRNewswire/ -- The McDonald's Corporation


(NYSE: MCD), the world's largest fast food retail conglomerate, has awarded a contract to Olivetti worth more than $300 million. Over the next 10 years Olivetti will be installing 50,000 work stations in some 8,800 McDonald's outlets in the United States.
 This is the largest order ever signed by Olivetti in the United States and one of the largest in the company's history.
 Carlo De Benedetti, chairman and chief executive officer of Olivetti Group, said, "We are proud that with this contract award, McDonald's -- one of the world's great companies -- will become Olivetti's largest global customer. Olivetti has once again demonstrated its pre-eminent position, competing against the most aggressive Asian and U.S. players."
 Under the terms of the arrangement Olivetti will supply and maintain eight to nine PCs and associated peripherals all connected through a Local Area Network (LAN). The company will also maintain the network and provide training and a 24-hour help desk.
 The installation will begin in August of this year and the potential sales revenue for full implementation is expected to be around $50 million per annum.
 Olivetti was chosen by McDonald's in competition with the world's top 20 IT manufacturers, including IBM and NCR in the United States, and McDonald's former supplier, the Japanese company Panasonic.
 Statement by Carlo De Benedetti, chairman and CEO, Olivetti Group:
 "This agreement with McDonald's has been achieved thanks to our technological superiority. It is a recognition of Olivetti's advanced technology, our international commercial and services organization, and our global management approach.
 "We are proud that with this contract award, McDonald's -- one of the world's great companies -- will become Olivetti's largest global customer. Olivetti has once again demonstrated its pre-eminent position, competing against the most aggressive Asian and U.S. players."
 The Contents of the Agreement
 The global value of the agreement exceeds $300 million. This is the largest order ever signed by Olivetti in the United States and one of the largest in the company's history.
 Olivetti has been chosen by McDonald's among 20 leading world information technology (I.T.) manufacturers; in the final round it has won over IBM, the leading I.T. company in the world and on the U.S. market, Japan's Panasonic, which was McDonald's former supplier, and U.S.-based NCR, one of the largest I.T. suppliers of the U.S. Public Authorities.
 Olivetti will provide for the automation of all of McDonald's restaurants and stores throughout the United States, which today number 8,800 and at the end of the decade will be around 12,000 workstations.
 Under the terms of the agreement, each McDonald's point of sales terminal will be equipped with 10 PC-based EPOS (Electronic Point-Of- Sales) workstations integrated in local area networks, together with a range of peripherals (printers, badge readers, toll, displayers, etc.).
 The systems will provide full operational automation: either at the front-office for customer handling in stores and restaurants, and at the back-office with In Store Processor-based systems for global administration (accounting, document archiving, etc.). The cash point workstations will adopt a new touch-screen technology instead of traditional keyboards.
 Olivetti will also provide specific project and service management as well as maintenance and consultancy services. Installation roll-out will begin in August.
 McDonald's Corp.
 McDonald's Corp., based in Oak Brook, Chicago (Ill.), is the world's largest fast food retail conglomerate, with the largest commercial area. Its organization numbers about 12,000 restaurants, of which 8,800 are in the United States and 3,700 throughout 51 countries. It has recently opened its largest store in Beijing: the facility can seat 700 people.
 1991 systemwide sales reached $20 billion, while operating income was $1.6 billion. In the first quarter of 1992, McDonald's posted an 11 percent increase in earnings.
 In the last quarter, McDonald's added 50 restaurants, most of them outside the United States. Within the end of the decade the total stores are expected to be over 20,000, of which 12,000 are in the United States.
 McDonald's has a franchising network, over 75 percent owned by independent operators. Its marketing is known worldwide for quality, service, cleanliness and value.
 McDonald's POS: System Overview
 McDonald's next generation Point Of Sale system is based on Open Architecture Intel 386 Personal Computers and LAN technology. The planned system will include register PCs running under MS-DOS, and multitasking extensions software combined with back office equipment using the UNIX operating system.
 Each Point Of Sale register will have a dedicated PC running MS-DOS, a touch screen display, and a cash drawer. The planned countertop input terminals will be based on flat panel (LCD) display technology using a touch screen overlay. By using these panel displays, the new terminal can be built using a low profile to keep the size of the unit to a minimum compared with CRT (Cathode Ray Tube) technology.
 In the back office, there is a Communications Control Unit and an In Store Processor. The Communications Control Unit acts as the local file server to hold programs and sales information for all registers in the system. The In Store Processor is an administrative computer running under UNIX that controls the maintenance of the menu items, personnel records, and provides inventory and sales reports. The In Store Processor also acts as a gateway to the outside world by providing communications services in and out of the store. Through this system, the store owner/operator or McDonald's Information Services can access sales and payroll records, download new menu items or prices, and remotely control the entire POS system.
 The system will be connected together using a LAN based on Ethernet topology. This will allow data to flow between registers and the back office equipment. Also, by using standard LAN topologies, the system will be able to communicate with the McDonald's corporate network to allow sharing of data from all stores throughout the McDonald's system.
 The POS software is based on a core system that handles all the background functions of communications, user input/output drivers, file services, system security, and management operations. Each store can then customize the menu screens to fit the needs of their particular business area. This flexibility, not available in the current system, allows the store manager to build a POS system that matches his or her needs. Ancillary equipment, such as receipt printers or magnetic card readers, can be added to the system by plugging them into the PC and activating the device through a touch screen on any register.
 The new POS system promotes ease of use for the store crew. Crew training is simplified because the register can display the menu items based on local requirements, the time of day or the menu item selected. The software leads the crew person through the sales process and even provides reminders on selling additional items such as drinks or desserts.
 The store manager can get up-to-the-minute reports on current sales, employee hours worked, and cash for any register in the system on a storewide basis. The software also tracks all products sold and can provide product mix and transaction level details of all store sales. This information can be used for inventory control, market and sales analysis, and store personnel scheduling.
 Overall, this new POS system provides McDonald's with the foundation of hardware and software to meet their expanding business needs. At the same time, it provides an affordable and flexible solution based on standard open architecture technologies.
 -0- 5/5/92
 /CONTACT: Robert Grieves of Burson-Marsteller, 212-614-4951, for Olivetti Group/
 (MCD) CO: Olivetti Group; McDonald's Corporation ST: Illinois IN: CPR SU: CON


GK-PS -- NY088 -- 6729 05/05/92 16:18 EDT
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