McDonald’s Launches New Digital Marketing Fund, Boosting Competitive Advantage and Expanding Loyalty Programs

McDonald’s is set to launch a new digital marketing fund in the U.S. next year, with franchisees contributing to it in an effort to expand the company’s digital business and modernize its marketing strategy. The change will also increase its competitive advantage, as outlined in a memo by U.S. Customer Experience Officer Tariq Hassan and Chief Information Officer Whitney McGinnis.

The memo revealed that McDonald’s plans to invest hundreds of millions of dollars to enhance its loyalty program and add new ordering channels. Loyalty program members generated over $6 billion in system-wide sales for McDonald’s globally during the first quarter, 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 the rate adjusted annually based on projections made at the beginning of each year. This change is expected to result in an increase in cash flow for each U.S. restaurant of around $2,600 starting in 2025, as the digital investment costs will shift from a franchisee’s profit and loss statement to the marketing contribution.

In addition to U.S. franchisees, McDonald’s operators in the U.K., Canada, Australia, and Germany will also contribute to the global digital marketing fund, with other markets expected to follow suit later on