McDonald’s U.S. franchisees will begin contributing to a digital marketing fund next year as the company aims to expand its digital business, modernize its marketing strategy and gain a competitive advantage. The memo from U.S. Customer Experience Officer Tariq Hassan and Chief Information Officer Whitney McGinnis announced the change, which is expected to lead to an increase in cash flow for every U.S. restaurant starting in 2025.
During the first quarter, loyalty program members generated over $6 billion in system-wide sales for McDonald’s globally. The company currently has 34 million active digital customers in the U.S., with a goal of reaching 100 million loyalty program members by 2027. By comparison, Chipotle Mexican Grill has 40 million loyalty members and Starbucks has 32.8 million, indicating that McDonald’s is making great strides in building its digital customer base and increasing sales through this channel.
Franchisees will fund the digital marketing fund by contributing 1.2% of projected identified digital sales such as transactions through the loyalty program or delivery orders, indicating their commitment towards growing their digital business and keeping up with changing consumer preferences in the fast-food industry. This new approach will allow McDonald’s to prioritize digital investments over traditional marketing tools like TV commercials, which is an effort to drive higher sales while also increasing profitability for franchisees.
McDonald’s U.K., Canada, Australia, and Germany franchisees will also contribute to the global digital marketing fund, signaling their commitment towards growing their digital business and keeping up with changing consumer preferences in their respective markets
