McDonald’s Loyalty Program Members Contribute $6 Billion in Global Sales: How the Fast-Food Giant Plans to Reach 100 Million Members by 2027

McDonald’s Loyalty Program Members Contribute $6 Billion in Global Sales

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 US, with 34 million members, it still lags slightly behind Chipotle Mexican Grill with 40 million members and Starbucks with 32.8 million members. Despite this, McDonald’s has set a goal of reaching 100 million loyalty program members by 2027.

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

In return for their investment, McDonald’s is forecasting that U.S. restaurants will see an increase in cash flow of approximately $2,600 per year starting in 2025. This boost is a result of digital investment costs being shifted from a franchisee’s profit and loss statement to the marketing contribution. Franchisees in other markets 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.

Overall, McDonald’s loyalty program continues to be a vital part of its growth strategy as it aims to attract new customers and retain current ones through personalized offers and rewards programs.