McDonald’s U.S. franchisees have agreed to contribute to a digital marketing fund starting next year, as the company aims to expand its digital business and gain a competitive advantage. This change is part of an effort to modernize their marketing strategy and invest in new technologies that will improve customer experience.
During the first quarter, loyalty program members generated over $6 billion in system-wide sales for McDonald’s globally, with 34 million active digital customers in the U.S., and 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.
In order to fund the digital marketing fund, franchisees will contribute 1.2% of projected identified digital sales, such as transactions through the loyalty program or delivery orders. The new approach is expected to lead to an increase in cash flow for every U.S. restaurant starting in 2025, allowing McDonald’s to prioritize digital investments over traditional marketing tools like TV commercials, in an effort to drive higher sales and improve customer experience.
McDonald’s U.K., Canada, Australia, and Germany franchisees will also contribute to the global digital marketing fund, with other markets following suit later on
