McDonald’s U.S. franchisees will begin contributing to a new digital marketing fund next year in an effort to expand the company’s digital business, as outlined in a memo viewed by CNBC. The change is aimed at modernizing the company’s marketing strategy and increasing its competitive advantage.
The memo, written by U.S. Customer Experience Officer Tariq Hassan and Chief Information Officer Whitney McGinnis, also revealed that McDonald’s plans to invest hundreds of millions of dollars to enhance its loyalty program and add new ordering channels.
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. In comparison, Chipotle Mexican Grill has 40 million loyalty members and Starbucks has 32.8 million.
To fund the new digital marketing fund, U.S. franchisees will be required to contribute 1.2% of projected identified digital sales starting next year, with other markets expected to follow suit later on. This change is expected to result in an increase in cash flow for each U.S