Big Mac appears on McDonald's app page
Daniel Acker | Bloomberg | Getty Images
mcdonalds U.S. franchisees will begin paying into a digital marketing fund next year as the fast food giant looks to expand its fast-growing digital business, according to a memo seen by CNBC on Thursday.
The changes are aimed at modernizing the company's marketing strategy and expanding its competitive advantage, according to a memo written by Tariq Hassan, head of U.S. customer experience, and Whitney McGinnis, chief information officer. There is. The memo also said McDonald's plans to invest hundreds of millions of dollars in improvements over the next few years. loyalty program It should also strengthen your digital business by adding more ordering channels, such as ordering on the web without downloading an app.
Loyalty program members accounted for more than $6 billion of McDonald's worldwide systemwide sales in the first quarter. The company has 34 million active digital customers in the United States. Chipotle Mexican Grill Starbucks has 40 million loyalty members, while Starbucks has 32.8 million.
In December, McDonald's announced that it would achieve the following goals: 100 million loyalty program Increase the number of members by 2027.
According to the memo, the franchisor is currently encouraging franchisees to use their existing marketing contributions to pay for the new funds by spending at least 4% of their gross sales. It is said that it is necessary. As a result, the new approach may result in McDonald's cutting back on traditional marketing tools such as: TV commercialfocus on areas that will visibly lead to increased sales.
Next year, U.S. carriers will tip 1.2% of the projected value of identified digital sales, such as transactions that occur when a customer logs into a loyalty program or orders a delivery, according to the memo. It is said that it is necessary. This rate changes each year based on forecasts made at the beginning of the year.
As a result of this change, McDonald's will restaurant cash flow is expected to increase by approximately $2,600 starting in 2025. This windfall comes from moving digital investment costs from the franchisee's P&L to marketing contributions.
Franchisees in the UK, Canada, Australia and Germany will also pay into the Global Digital Marketing Fund. The remaining McDonald's markets will later transition to this approach.
Summarize this content to 100 words Big Mac appears on McDonald's app pageDaniel Acker | Bloomberg | Getty Imagesmcdonalds U.S. franchisees will begin paying into a digital marketing fund next year as the fast food giant looks to expand its fast-growing digital business, according to a memo seen by CNBC on Thursday.The changes are aimed at modernizing the company's marketing strategy and expanding its competitive advantage, according to a memo written by Tariq Hassan, head of U.S. customer experience, and Whitney McGinnis, chief information officer. There is. The memo also said McDonald's plans to invest hundreds of millions of dollars in improvements over the next few years. loyalty program It should also strengthen your digital business by adding more ordering channels, such as ordering on the web without downloading an app.Loyalty program members accounted for more than $6 billion of McDonald's worldwide systemwide sales in the first quarter. The company has 34 million active digital customers in the United States. Chipotle Mexican Grill Starbucks has 40 million loyalty members, while Starbucks has 32.8 million.In December, McDonald's announced that it would achieve the following goals: 100 million loyalty program Increase the number of members by 2027.According to the memo, the franchisor is currently encouraging franchisees to use their existing marketing contributions to pay for the new funds by spending at least 4% of their gross sales. It is said that it is necessary. As a result, the new approach may result in McDonald's cutting back on traditional marketing tools such as: TV commercialfocus on areas that will visibly lead to increased sales.Next year, U.S. carriers will tip 1.2% of the projected value of identified digital sales, such as transactions that occur when a customer logs into a loyalty program or orders a delivery, according to the memo. It is said that it is necessary. This rate changes each year based on forecasts made at the beginning of the year.As a result of this change, McDonald's will restaurant cash flow is expected to increase by approximately $2,600 starting in 2025. This windfall comes from moving digital investment costs from the franchisee's P&L to marketing contributions.Franchisees in the UK, Canada, Australia and Germany will also pay into the Global Digital Marketing Fund. The remaining McDonald's markets will later transition to this approach.Don't miss exclusive information on CNBC PRO
https://www.cnbc.com/2024/05/09/mcdonalds-makes-changes-to-increase-mobile-sales.html McDonald's makes changes to increase mobile sales
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