At Extreme Investor Network, we are always on the cutting edge of business news and information. Today, we bring you the latest update from McDonald’s, one of the world’s largest fast-food chains.
In an effort to expand its booming digital business, McDonald’s U.S. franchisees will begin contributing to a digital marketing fund next year. This move is part of the company’s plan to modernize its marketing strategy and gain a competitive advantage in the evolving digital landscape.
According to a memo from McDonald’s U.S. Customer Experience Officer Tariq Hassan and Chief Information Officer Whitney McGinnis, the company plans to invest hundreds of millions of dollars in the coming years to enhance its loyalty program and add new ordering channels. This includes the ability to place web orders without downloading an app, making it even easier for customers to engage with the brand digitally.
McDonald’s already has 34 million active digital customers in the U.S., with loyalty program members contributing over $6 billion in system-wide sales globally during the first quarter alone. The company’s goal is to reach 100 million loyalty program members by 2027, putting it in line with other major players in the industry like Chipotle and Starbucks.
To fund this digital marketing push, U.S. franchisees will contribute 1.2% of projected identified digital sales next year, with rates adjusted annually based on projections. This change is expected to increase cash flow for each U.S. restaurant by approximately $2,600 starting in 2025, as the costs of digital investments shift from individual franchisees to the marketing fund.
In addition to U.S. franchisees, McDonald’s markets in the U.K., Canada, Australia, and Germany will also contribute to the global digital marketing fund. This move highlights McDonald’s commitment to staying at the forefront of digital innovation in the fast-food industry.
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