McDonald’s Aims for 100 Million Loyalty Members by 2027: Will Franchisees Invest in Digital Marketing?

In the first quarter of this year, McDonald’s loyalty program members contributed over $6 billion in system-wide sales globally. The company has set a goal of reaching 100 million loyalty program members by 2027. While they currently have 34 million active digital customers in the US, they lag slightly behind Chipotle Mexican Grill with 40 million members and Starbucks with 32.8 million members.

To achieve this ambitious plan, McDonald’s is suggesting that franchisees use their existing marketing contribution of at least 4% of gross sales towards funding the global digital marketing fund. 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 return for their investment, 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 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.