Tag: chicago

  • Mars Study Projects AI-Driven Retail to Reach 788 Billion Dollars by 2035

    Mars Study Projects AI-Driven Retail to Reach 788 Billion Dollars by 2035

    Automated AI agents will handle everyday consumer purchases over the next decade. At the same time, global retail will shift toward experiential spaces, according to research from Mars, Kantar and Synthesis.

    Researchers analysed more than 180,000 data signals across four continents. The goal was to evaluate how consumer purchasing habits and retail platforms will operate through 2035.

    The report identifies three primary shifts: algorithmic purchasing automation, granular personal curation, and experiential physical and digital storefronts. Intelligent software assistants will handle recurring household restocking. As a result, physical shops must transform from functional transaction points into entertainment and community destinations.

    Automated repeat purchases and agentic commerce

    Software agents now manage routine consumer replenishment without manual order placement. They process purchase histories, individual preferences and live inventory levels in real time. Artificial intelligence referrals to e-commerce brands jumped 752 per cent year on year during the 2025 holiday shopping season, according to data from BrightEdge. The firm projects that AI-driven commerce transactions will expand to $788 billion globally by 2035.

    This dynamic splits retail into two separate tracks. Basic household necessities and staple groceries move into frictionless background fulfilment. Meanwhile, discretionary shopping becomes an intentional activity centred on product discovery.

    Balancing personal curation with data governance

    Consumer expectations for customised digital interactions continue to climb across retail categories. Research from TransUnion shows that 39 per cent of consumers now expect personalised online shopping experiences.

    Tailored product recommendations require retail platforms to process deeper customer data streams. That requirement raises compliance demands around customer consent, data storage and cross-border consumer protection standards across international operating territories.

    Physical stores pivot to entertainment

    Physical stores and digital platforms are responding to automated replenishment by turning shopping trips into sensory destinations. Experiential brand venues recorded 15.3 per cent year on year growth, according to tracking data from Emarketer.

    Online channels follow a similar path toward active engagement. Emarketer figures show that 22 per cent of United States digital buyers already purchase products directly through livestream broadcasts.

    Snacking brands confront disappearing impulse buys

    Background replenishment threatens traditional impulse-driven consumer packaged goods categories. Packaged food manufacturers built their distribution models around checkout aisles, end-cap displays and point-of-sale visibility in convenience stores and supermarkets. When automated algorithms reorder groceries based on historical basket data, unprompted impulse sales drop sharply.

    Brand owners now need direct interactive touchpoints to introduce new items before algorithms lock shoppers into rigid consumption loops. Regional supermarket operators must redesign floor layouts away from dense shelving and toward dedicated sampling zones and interactive kiosks.

    Retail chains started testing automated inventory reordering and cashierless checkout networks in late 2025. Consumer packaged goods manufacturers now face the 2026 holiday retail cycle as the next test of whether interactive digital activations can defend impulse purchase volumes against automated buying agents.

  • McDonald’s Uses AI to Guide Menu Prices Across Global Markets

    McDonald’s Uses AI to Guide Menu Prices Across Global Markets

    McDonald’s is increasingly deploying artificial intelligence to guide menu prices across the US and international markets, according to reports in September 2026.

    The system supercharges pricing models by estimating how much each store’s patrons are willing to pay, a move designed to lift headquarters’ profit.

    How the Pricing Engine Operates

    However, the extensive use of AI risks alienating customers and attracting antitrust scrutiny, while franchisees report mounting corporate pressure over local pricing decisions.

    Price gaps between nearby outlets have widened under the algorithm. In Fresno, California, a company-owned branch listed a Big Mac at $5.69. Another company store two miles away charged $6.89. That is a 21 percent price premium for the same product.

    Franchise Rules and Compliance Tracking

    Corporate executives maintain that operators retain legal discretion over menu pricing. Even so, store owners report institutional pressure to adopt the algorithmic recommendations. Internal documentation from June confirms headquarters logs specific instances where franchisees deviate from recommended figures.

    Under business standards enacted in January, franchise operators must constructively engage with corporate-approved pricing consultants and digital tools. McDonald’s defended the system as an advisory tool rather than a mandate, designed to help operators navigate varying overheads and distinct trade areas.

    Operator Margins and Market Friction

    Centralized algorithmic models shift pricing control away from local store operators. Across developed Asian markets like Japan, Australia and Singapore, automated yield management tests consumer tolerance. Franchise networks in these markets already face elevated labor and supply chain costs.

    Quick-service brands risk swift pushback whenever digital systems create visible price gaps across nearby postal codes. Rival chains Wendy’s and Burger King confirmed they do not use automated artificial intelligence tools to alter menu pricing. Both chains are positioning themselves against algorithmic adjustments.

    The Race Toward Automated Restaurant Tech

    Fast-food conglomerates have accelerated investments in predictive automation over the past two years. The goal is protecting gross margins while testing value propositions for cost-conscious diners. Yum Brands, operator of KFC and Taco Bell, has similarly expanded artificial intelligence deployments across its global store network to streamline operational decisions.

    Presentations from corporate executives show earlier affordability initiatives aimed at retaining traffic among lower-income demographics. Investor filings show headquarters views the technology as essential to defending systemwide volume without sacrificing royalty receipts.

    Regulators and consumer protection bodies continue to review dynamic and algorithmically generated pricing structures across retail sectors. Attention now shifts to fourth-quarter store profitability reports and franchisee compliance metrics as operators evaluate how local foot traffic responds to neighborhood price adjustments.

  • McDonald’s Tests Third-Party Ads on Screens Across 13,700 US Stores

    McDonald’s Tests Third-Party Ads on Screens Across 13,700 US Stores

    McDonald’s is testing third-party ads on digital menu boards and ordering kiosks in select company-owned US restaurants. The trial targets the gap between payment and collection across a domestic footprint of more than 13,700 outlets.

    Drive-thru boards and self-service kiosks display commercial promos once a customer completes an order. Reserving that post-purchase window for outside brands lets the chain build a high-margin ad business without slowing down the ordering queue.

    Sales growth has decelerated sharply. Second-quarter global comparable sales rose 1.3 per cent for the period ended June 30. Domestic comparable sales slowed to 0.8 per cent, down from 3.9 per cent in the first quarter.

    Turning Customer Wait Times into Ad Inventory

    The system relies on idle visual time. After an order is logged and paid for, the display switches from item selection to third-party commercials while the kitchen prepares the meal.

    McDonald’s reaches roughly 26 million daily customers in the US. It interacts with nearly 90 per cent of the country’s population each year. That physical footfall provides an audience density rival digital networks struggle to match at the point of sale.

    A company spokesperson confirmed the test in an email statement:

    “This limited menu board advertising pilot at select company-owned restaurants is exploring ways to share post-purchase content that customers may find helpful, relevant, or interesting, while ensuring the McDonald’s experience remains at the center of every visit.”

    The Push into In-Store Retail Media

    Supermarket operators have spent years converting aisle footfall into retail media revenue. Media margins now generate between 3 per cent and 10 per cent of total operating profit for grocers, according to McKinsey & Co.

    Fast-food chains have lagged behind supermarkets in building dedicated advertising arms. A study by Forrester Consulting found restaurant operators have been slow to commercialise transaction data and screen interactions, leaving physical point-of-sale displays underutilised.

    In-store hardware is already deployed. Digital board rollouts began roughly a decade ago. By 2019, dynamic screens sat in more than 11,000 drive-thru lanes alongside self-ordering kiosks inside dining rooms.

    Implications for Asian Master Franchisees

    Asian master franchisees and licensed operators could use the pilot as a blueprint to extract auxiliary revenue from capital-intensive store refits. High-density markets such as Japan, South Korea, Taiwan and the Philippines already run heavily digitised ordering environments with dense foot traffic.

    Monetising screen real estate introduces friction with store operations. Franchisees run the vast majority of outlets globally. Operators will demand a clear split of ad revenues if corporate headquarters mandates third-party messaging on store hardware.

    Clutter presents another hurdle. Displaying non-food advertisements in dining areas risks degrading store environments. Promoting outside consumer goods at drive-thrus can also distract drivers during meal rushes, forcing operators to balance ad income against speed-of-service metrics.

    Traffic Squeeze and Hardware Modernisation

    Mounting margin pressure from rising input costs and softening store traffic drove the ad pilot. McDonald’s responded earlier this year by introducing value-oriented meal bundles to counter customer resistance to menu price increases.

    Modernising the digital footprint formed the first phase of this strategy. Over the past decade, capital poured into indoor touchscreens, drive-thru automation and mobile loyalty programmes to lower labour requirements and capture first-party consumer data.

    An investor day, the company’s first in three years, is scheduled for September 23. Management is expected to outline whether third-party screen advertising will expand across franchised locations or remain confined to company-operated pilot stores.

  • NIQ and Similarweb Partner to Launch AI Commerce Measurement in Q4 2026

    NIQ and Similarweb Partner to Launch AI Commerce Measurement in Q4 2026

    NIQ and Similarweb are collaborating on an Agentic Commerce Measurement solution to help brands, retailers and technology platforms track purchases made through artificial intelligence, with an initial version scheduled for Q4 2026.

    The collaboration combines NIQ’s product intelligence, consumer behavior data and retail sales measurement with Similarweb’s digital signals across generative AI platforms. Together, the two New York Stock Exchange-listed companies will connect AI discovery to measured sales outcomes.

    Five tracking pillars

    The planned solution will initially focus on 5 areas across the buying journey: consumer intent, agentic shelf visibility, product content readiness, AI-driven traffic and AI-driven conversion into verified omnichannel purchases.

    Initial monitoring will cover major generative tools including ChatGPT, Gemini, Google AI Mode, Perplexity and Claude. These analytics feed directly into NIQ’s Commerce Intelligence ecosystem, which links brand product catalogs with enterprise retail operations.

    AI is becoming a new commerce channel, and NIQ intends to make it measurable. Our clients want to know where AI is already influencing their business, how quickly that influence is growing and what they should do about it.

    The shift to agentic checkouts

    Protocols such as Google’s Universal Commerce Protocol and OpenAI’s Agentic Commerce Protocol prompted the project. Both frameworks allow autonomous software agents to research, evaluate and purchase merchandise inside a single chat window without redirecting the shopper to a traditional storefront.

    For consumer brands and multi-brand merchants, automated shopping removes the classic digital shelf where banner placements and search bidding drove conversion. Brands drop out of the basket entirely if an AI agent filters options down to two choices based on structured technical metadata they lack.

    Catalog hygiene and algorithmic bias pose immediate hurdles for suppliers. A brand cannot buy sponsored placement inside an autonomous agent if the underlying Large Language Model cannot parse the product description or confirm inventory in real time.

    Platform coverage and next stages

    Integration relies on NIQ’s existing enterprise analytics tools, Optiq and ConnectAI, which feed commercial data directly into corporate workflow software. Similarweb previously built out dedicated digital footprint tools to capture referral traffic from generative artificial intelligence search portals.

    NIQ and Similarweb plan to reveal initial product categories and regional test markets ahead of the fourth-quarter rollout in 2026.

  • Citi Unveils New Chicago Desk to Bolster Support for Korean Corporates in the US Market

    Citi Unveils New Chicago Desk to Bolster Support for Korean Corporates in the US Market

    Citi, the American multinational investment bank, is set to enhance its service to Korean corporate clientele with the inauguration of a new desk in Chicago.

    Expanding Coverage of Korean Corporates

    The newly launched Korea desk in Chicago is part of Citi’s strategic plan to augment its local financial support for Korean corporate clients who are penetrating the North American market. This addition builds upon Citi’s existing US coverage of Korean corporations, which was initiated in New York in 1993.

    Currently, Citi operates Korea desks around the world, including in London, Prague, Dubai, Singapore, Warsaw, Chennai, Hong Kong, Atlanta, and Monterrey.

    Growth of Korean Corporates in North America

    Citi reports that Korean corporates are quickly spreading their influence across North America, spanning a broad range of industries such as manufacturing, power, semiconductors, and services. The expansion into the United States extends beyond specific regions as businesses set up production and sales bases throughout the country, making their operations progressively widespread.

    Kyoungho Kim, the head of the corporate banking group at Citi Korea, noted the bank’s history of aiding Korean corporates. He highlighted how Citi Korea has been instrumental in bridging the financial operations of these clients’ headquarters in Korea with their overseas subsidiaries through its Korea Desks in key global markets.

    Enhanced Support for Korean Corporates in the Midwest

    The Chicago Korea Desk’s introduction marks a step forward in extending this crucial service in North America. It aims to provide ample support for Korean corporates operating in the US Midwest, guiding them through their funding and financial transactions in alignment with the local financial environment.

    Questions & Answers

    What is the purpose of the new Korea desk in Chicago launched by Citi?

    The Korea desk in Chicago is intended to expand Citi’s local financial support for Korean corporate clients penetrating the North American market.

    What industries are Korean corporate clients involved in?

    Korean corporate clients are involved in a wide range of industries, including manufacturing, power, semiconductors, and services.

    What are Citi Korea’s efforts in supporting Korean corporate clients?

    Citi Korea has been pivotal in connecting the financial operations of Korean corporates’ headquarters with their overseas subsidiaries, providing consistent financial support in key global markets.

  • Indian jeweller makes Chicago debut

    Indian jeweller makes Chicago debut

    Tata Group’s jewellery brand Tanishq has increased its presence in Chicago by opening a store at 4300 East New York Street.

    The Chicago store will feature a specialised and exclusive workwear selection targeting the different demands of women on professional and casual occasions.

    Additionally, collections including Tales of Mystique and Rhythms of Rain feature worldwide and contemporary jewellery influenced by the cultural riches of Jodhpur, Rajasthan, and Kerala.

    “Having already captured the imagination of the discerning consumer in New Jersey and Texas, Tanishq is excited to be entering another iconic American city with a diverse customer base who can now enjoy our unrivaled offering right at their doorstep,” said Kuruvilla Markose, CEO of Titan International Business.

    “Our stunning Chicago store plays a pivotal role in Tanishq’s global expansion, aiming to cater not only to the Indian diaspora but also to the broader American and international communities residing in the city, with an unrivalled offering of more than 2000 unique designs.”

    Tanishq, which had previously established a presence in New Jersey and Texas, now has 420 outlets in India and is expanding internationally into Dubai, the UAE, Qatar, Singapore, and the US.

  • Chicago Approves Traffic Congestion Tax On Ride-Hailing Services

    Chicago Approves Traffic Congestion Tax On Ride-Hailing Services

    A proposal to combat traffic congestion in Chicago by increasing taxes on certain ride-hailing trips won city council approval on Tuesday as the city and ride providers accused each other of penalizing low-income passengers.

    Mayor Lori Lightfoot’s plan increases the city’s tax on single-passenger trips and lowers the tax on shared rides while imposing new surcharges on weekday rides in the downtown area to raise $40 million for the fiscal year that begins Jan. 1.

    Ride-hailing companies Uber Technologies Inc and Lyft Inc claimed the move would largely hurt low-income residents.

    Earlier this month, the city’s first female African-American mayor accused Uber of trying to resist any kind of regulation by stirring up racial tensions.

    Uber rejected her claims and said alternative proposals it offered would spare lower-income communities in Chicago’s South and West sides from higher costs while raising more money for the city’s budget.

    Reuters’ analysis of data that ride-sharing companies are required to disclose to Chicago shows fares for shared rides in the city have risen significantly over the past year, while fares for single riders have remained stable.

    The price increases for shared rides predominantly affect Chicago’s low-income neighborhoods where most of carpool rides are booked, the analysis showed. Over this period of increased fares, carpool ridership fell.

  • Starbucks Chicago opens today

    Starbucks Chicago opens today

    Global coffee chain Starbucks today unveils a giant 35,000sqft Reserve Roastery outlet in Chicago, its largest store in the world to date.

    The five-story Starbucks Chicago store features a unique menu of Starbucks Reserve specialty coffee, boutique Milanese Princi bakery items, and an Arriviamo Bar featuring coffee cocktails Tributes to Chicago abound, including locally inspired craft cocktails, barrel aged coffee and collaborations with local artists and vendors.

    The Starbucks Chicago Reserve Roastery marks the brand’s sixth global Roastery and third in the US. Visitors will be able to see, hear and learn about the journey of coffee through intentional design, while enjoying a menu featuring unique beverages exclusive to this location. The Chicago Roastery joins locations in Seattle, Shanghai, Milan, New York and Tokyo.

    “Over the past five years, we have created the ultimate immersive experience around all-things-coffee in spectacular Starbucks Reserve Roasteries in flagship cities around the world,” said Starbucks CEO Kevin Johnson. “This week we are delighted to open our doors on the sixth global Roastery in an iconic building located on Chicago’s renowned Magnificent Mile.

    “These Roasteries amplify the Starbucks brand, serve as innovation hubs, and create experiences for millions of customers around the world.”

    “The design of the Chicago Roastery was inspired by the iconic Chicago landmark, and the city itself,” said Roastery design & concept for Starbucks VP Jill Enomoto. “We embraced the building’s natural light, married it with shades of classic Starbucks greens and intentionally wove in design features to encourage customer exploration and highlight the love and respect we have for coffee.”

    The Starbucks Chicago Reserve Roastery is a working coffee roastery where Starbucks roasters will be small-batch roasting Starbucks’ rarest single-origin coffees and blends called Starbucks Reserve. The coffee roasted in Chicago will be served exclusively to visitors of the location, available in handcrafted beverages as well as freshly scooped whole bean coffee.

    In a nod to the city’s vibrant history, artwork from local Chicago artists that tell stories and encourage customers to explore can be found throughout the building’s five floors. Customers can also purchase limited-edition merchandise from Chicago-based visual artist Mac Blackout to take home with them.

    There are three coffee bars at the Roastery, which in total offer seven brewing methods, including espresso, pour over, coffee press, siphon, Chemex, Clover and cold brewing:

    Starbucks Reserve Coffee Bar: Upon entering the Roastery, visitors can visit the Reserve coffee bar on the main level, where baristas are crafting classic espresso beverages such as cappuccino, latte and cortado.

    Experiential Coffee Bar: The third floor is home to the Experiential coffee bar which provides customers the opportunity to immerse in the art, science, and theatre of coffee.  It features elevated brew methods and pairings, as well as specialty Roastery creations and brew comparison flights.

    Barrel-Aged Coffee Bar: The barrel-aged coffee bar is found on the fourth floor and showcases a variety of spirit-free coffee beverages whose beans aged in barrels. Here, visitors can explore a menu of cocktail-inspired coffee creations exclusive to the Chicago Roastery, including the Smoked Cold Fashioned (a lightly sweetened whiskey barrel-aged cold brew with aromatic bitters, smoked tableside), Minted Cold Brew (whiskey barrel-aged cold brew, shaken with mint syrup and served over pebble ice) and more.

    On-demand nitrogen gelato

    The Starbucks Chicago Reserve Roastery is the only Starbucks location in the US to offer on-demand liquid nitrogen gelato. Designed to pair with Starbucks Reserve coffee, nitrogen gelato is mixed by hand, with every scoop made on the spot. Nitrogen gelato previously debuted at the Milan Roastery when it opened in September last year.

    Arriviamo cocktail bar

    The Chicago Roastery will feature a dedicated Arriviamo Bar, like the Starbucks Reserve Roastery locations in New York and Milan. Located on the fourth floor, the Arriviamo bar features traditional and unique cocktails, all designed by local mixologists Julia Momose, Annie Beebe-Tron and Rachel Miller. Some of the cocktails feature coffee and tea.

  • NTT Com launches lowest latency Tokyo-Chicago link

    NTT Com launches lowest latency Tokyo-Chicago link

    Japan’s NTT Com has launched a new ultra-low latency connectivity service between the financial markets of Tokyo in Japan and Chicago in the United States.

    The operator said the JPX-Chicago Co-Location Direct service offers the industry’s lowest latency for connectivity between Japan Exchange Group’s (JPX) colocation centre and the Cermak data center used by Chicago’s financial market.

    A point of presence in the JPX colocation center links directly to NTT Com’s PC-1 subsea cable to support high frequency trading between the two markets.

    Customers will be able to seamlessly use cross connections in both centres to ensure trades are implemented as quickly as possible.

    NTT Com also delivers connectivity services between JPX and financial markets in Hong Kong and Singapore.