In a strategic move to bolster its digital footprint, McDonald’s U.S. franchisees are set to contribute to a digital marketing fund starting next year. This initiative aims to revamp the company’s marketing strategy and enhance its competitive edge in the digital arena.
According to a memo authored by U.S. Customer Experience Officer Tariq Hassan and Chief Information Officer Whitney McGinnis, McDonald’s plans to invest significant resources over the coming years to enhance its loyalty program and expand ordering channels. This includes innovations such as web-based ordering without the need for app downloads, expected to further propel the company’s digital growth.
During the first quarter, loyalty program members drove over $6 billion in system-wide sales globally, underscoring the immense potential of McDonald’s digital initiatives. With 34 million active digital customers in the U.S., the company aims to reach 100 million loyalty program members by 2027.
To fund these endeavors, U.S. franchisees will contribute 1.2% of projected identified digital sales, aligning with McDonald’s broader digital marketing strategy. This shift is expected to redirect resources from traditional marketing tools like TV commercials to areas yielding tangible sales growth.
The anticipated outcome includes an estimated $2,600 increase in cash flow for every U.S. restaurant by 2025, as digital investment costs are reallocated from franchisee profit and loss statements to the marketing contribution pool.
This transformation isn’t confined to the U.S., as franchisees in the U.K., Canada, Australia, and Germany will also participate in the global digital marketing fund. McDonald’s continues its digital evolution, anticipating broader market adoption of this forward-looking approach.
