Unlocking the Secrets to McDonald’s Ambitious $6 Billion Loyalty Program Push: How Franchisees are Contributing and What They’re Getting in Return

In the first quarter of 2023, McDonald’s loyalty program members contributed over $6 billion in system-wide sales globally. While the company has a significant number of active digital customers in the U.S., with 34 million members, it lags slightly behind Chipotle Mexican Grill and Starbucks, which have 40 million and 32.8 million members respectively. However, McDonald’s is determined to reach its goal of having 100 million loyalty program members by 2027.

To fund this ambitious plan, McDonald’s is suggesting that franchisees contribute at least 4% of their gross sales towards marketing efforts. This may require franchisees to cut back on traditional marketing strategies like TV commercials in favor of tactics that have a more direct impact on sales. In the U.S., franchisees will be required to contribute 1.2% of their projected identified digital sales towards the fund starting in 2025, with the rate changing annually based on yearly projections.

In exchange for their investment, U.S. restaurants are forecasted to see an increase in cash flow of approximately $2,600 per year starting in 2025. This boost is due to digital investment costs being shifted from a franchisee’s profit and loss statement to the marketing contribution. Franchisees in other countries such as the UK, Canada, Australia and Germany will also participate in funding the global digital marketing fund, with other markets expected to follow suit in the future.