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McDonald's announced Monday that it will launch a new business strategy aimed at making its stores easier to franchise.
The announcement, called “McDonald's > NEXT,” focuses on increasing automation, raising hospitality standards, relying on social media for marketing and making your food taste better.
It comes as the fast-food giant tries to hold on to low-income consumers who have cut back on restaurant visits during years of high prices.
McDonald's CEO Chris Kempczinski revealed the new strategy in a message sent to McDonald's System and said it aims to “open our next phase of growth and productivity, by bringing more customers more often and improving unit economics.”
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McDonald's new strategy seeks to simplify the process of operating their stores for franchise owners, while attracting more customers. (Scott Olson/Getty Images)
“NEXT is what it is. Our shared space. You'll write how, in your own way, your market, your customers, and your employees,” Kempczinski wrote.
McDonald's restaurant CEO Jill McDonald said in a statement that the new strategy will make restaurants “easier to operate and more enjoyable to visit.”
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| A ticker | Security | Finally | Change | change % |
|---|---|---|---|---|
| MCD | MCDONALD'S CORP. | 276.11 | -3.27 |
-1.17% |
The restaurant's last business strategy update came in 2020 and was called “Accelerating the Arches,” and focused on digital sales and marketing expansion.
The share of US customers who said the chain offered good value fell from 55% to about 40% between 2020 and 2024, and has remained there ever since, according to research from UBS Evidence Labs shared with Reuters last month.
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McDonald's CEO Chris Kempczinski said the food giant's marketers will play a major role in developing the new strategy. (Photos by Paul Weaver/SOPA/LightRocket)
Kempczinski's message noted that as the customer experience becomes increasingly automated, there are fewer opportunities for interaction between guests and McDonald's franchise employees. He explained that “with few interactions, a hospitality environment that makes people feel seen, welcomed, and only valued.”
“Customers also depend on us for compelling, predictable pricing, and even more so with unprecedented inflation,” the CEO wrote. “While our value proposition has rebounded in many markets, it's a reminder that we need to earn, and re-earn, each visit.”
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McDonald's shares fell more than 1% on Monday and are down more than 9% for the year to date.
Reuters contributed to this report.
