McDonald’s U.S. operators will start contributing to a new digital marketing fund in 2025 as the burger giant looks to bolster its e-commerce business, according to CNBC.

CNBC found the information from a memo published by U.S. customer experience officer Tariq Hassan and chief information officer Whitney McGinnis.

The letter said McDonald’s wants to invest hundreds of millions of dollars in the next several years to upgrade MyMcDonald’s Rewards and its digital ordering channels. One example is being able to place orders through the website without having to download the app. Some others are innovation around personalization and next-gen loyalty capabilities.

McDonald’s is recommending operators pay for the fund using their existing marketing contribution.

In 2025, U.S. franchisees must contribute 1.2 percent of expected identified digital sales. McDonald’s said the rate will be updated annually based on projections. The franchisor also said the change should lead to every U.S. store seeing a $2,600 increase in cash flow starting in 2025. This is because of digital investment expenses switching from the P&L to the marketing contribution, according to CNBC.

McDonald’s investment will be focused on innovation and development costs for new products and features whereas franchisees’ investment will fund ongoing operating costs.

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The different approach will move McDonald’s away from legacy marketing with lower returns and push it toward digital-forward strategies. The company will collaborate with franchisees over the next few months to prioritize investments.

“When we shift marketing investment from traditional mass media like television, print and billboard ads, to collective investment in modern and digital capabilities to personalize the experience, we drive profitability,” CEO Chris Kempczinski said during the brand’s Q1 earnings call. “And successfully delivering personalized experiences depends on transforming our restaurants to deliver what customers want, hot fresh orders delivered with convenience and accuracy.”

MyMcDonald’s Rewards members represented more than $6 billion in U.S. sales during the chain’s first quarter. The company has roughly 34 million active users in the U.S.

In December, McDonald’s reported that it had 150 million 90-day active loyalty users globally (70 million just in China), with members leading to more than $20 billion in systemwide sales. The chain set a goal to grow its active base to 250 million by 2027 and reach $45 billion in systemwide sales from loyalty users. At that point, the brand had more than 100 million customer registrations on its mobile app in the past 12 months across its 50 biggest markets.

“Breakthrough campaigns, a great tasting menu, and personalized experiences will drive customers to McDonald’s again and again as they come through the physical doors of our restaurants and the digital door of our mobile app,” Kempczinski told investors at the end of April. “And in this environment, with pressured [quick-service] traffic, we have an opportunity to get the customers who already visit to visit more often. As more customers make purchase decisions based on personalized recommendations on their phones, driving frequency means using our digital capabilities like loyalty to know when to serve our customers better than anyone else. With the insights powered by our loyalty members, we will work to deliver the right message at the right time to the right consumer, encouraging those who already love McDonald’s to visit even more.”

Helping this digital cause will be the expansion of “Ready On Arrival,” an initiative that allows workers to start creating mobile orders prior to their arrival.

In terms of delivery, McDonald’s said it prepares 55,000 orders globally at any given time. Customers can order delivery via the mobile app in five of the chain’s top markets. The plan is to have 30 percent of delivery orders originate from the mobile app by 2027.

Global same-store sales lifted 2 percent in Q1 year-over-year, marking the brand’s 13th straight quarter of positive comps. That includes 30 percent growth over the past four years. In the U.S. specifically, same-store sales rose 2.5 percent thanks to average check growth, menu price increases, effective marketing campaigns featuring core menu items, and continued expansion of digital and delivery.

McDonald’s finished Q1 with 13,469 stores nationwide, comprising 12,783 franchised units and 686 company-owned locations.

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