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McDonalds serves up Wi-Fi with fries
US trials show shape of things to come...

By Ina Fried

Published: Wednesday 09 July 2003

McDonalds has this week announced a second trial of Wi-Fi access, announcing it has equipped dozens of restaurants in the San Francisco Bay Area with the gear its customers need in order to surf the web while wolfing down some Chicken McNuggets.

Earlier this year, the company began offering service at 10 restaurants in Manhattan.

However, the fast food firm is still trying to figure out what to charge patrons who want to use the internet and how to share that revenue with those that offer the internet service.

Don Thompson, president of McDonald's West Division, said: "The most important part is, 'Is this relevant to our customers?' If that's the case, then we'll deal with the revenue sharing."

In San Francisco, McDonald's plans to charge $4.95 for two hours - should anybody actually want to spend that long in one of their restaurants - although the company will offer deals that give people some access if they buy certain meals. Also, those who subscribe to the provider, Wayport's network will also be able to surf at McDonald's using their existing service plan. So will those who have roaming rights on Wayport's network, including customers of Verizon Wireless, AT&T Wireless and iPass.

McDonald's plans to have more than 75 Bay Area restaurants ready to serve up the net in short order, with most up and running in the next few days.

Analysts have questioned the business model behind equipping vast numbers of retail spots with wireless internet access.

Ultimately, though, McDonald's sees Wi-Fi as a way to sell more meals, not as a way to get into the internet business.

"What we're banking on is that more customers will visit McDonald's," Thompson said.

However, whether the customers who use McDonalds are likely to prove to be the kind of people who need to get out their laptop and do some work is yet to be seen.

Mark Jamison, senior director of strategy and business development at McDonald's, said: "We're really good at selling hamburgers. We're not good at predicting technology."

Ina Fried writes for News.com