McDonald’s Digital Marketing Fund: Enhancing Digital Business and Boosting Revenue wurldtechnews.com/mcdonalds-digital-marketing-fund-enhancing-digital-business-and-boosting-revenue/9198.html

In response to the growing demand for digital services and the need to modernize its marketing strategy, McDonald’s U.S. franchisees will begin contributing to a digital marketing fund starting next year. This move, endorsed by both the Customer Experience Officer and Chief Investment Officer at McDonald’s, is aimed at enhancing the company’s digital business, which has been experiencing significant growth. The funds generated from this initiative are expected to be utilized in improving the loyalty program and expanding digital ordering channels, which will ultimately boost McDonald’s digital revenue. The franchisor is currently advising its franchisees to pay for this new fund using their existing marketing contribution, which requires them to allocate 4% of their gross sales towards marketing expenses. This change is anticipated to prompt McDonald’s to redirect resources from traditional marketing techniques, such as television advertisements, to areas that directly contribute to increased sales. Beginning next year, U.S. restaurants will be required to contribute 1.2% of predicted digital sales to the global digital marketing fund. This charge will alter annually depending on the initial forecast made at the beginning of each year. As a result of these adjustments, McDonald’s predicts that every U.S. outlet will witness a cash flow increase of approximately $2,600 starting in 2025, as a consequence of transferring digital expenditure costs from individual franchisee profit and loss statements to the marketing contribution. Franchisees in the U.K., Canada, Australia, and Germany will also be required to make contributions to this digital marketing fund, while other McDonald’s markets will gradually adopt this methodology.