McDonald’s to tier loyalty program as members drive 30% of sales

  • McDonald’s plans to replace its loyalty program with a tiered system.
  • 30% of McDonald’s sales comes from loyalty members, CEO Chris Kempczinski said.
  • Morgan Flatley described 220 million active and 150 million lapsed members worldwide.

McDonald’s plans to move its loyalty program to a tiered system to distinguish frequent customers from casual and lapsed diners, Chief Marketing Officer Morgan Flatley said at the company’s investor day on Wednesday. The shift is intended to attract new members and increase purchase frequency through personalized offers rather than broad discounting, which can pressure restaurant profit margins. CEO Chris Kempczinski said loyalty members generate about 30% of sales and visit McDonald’s restaurants 2-1/2 times more frequently. The program has 220 million active members worldwide, while another 150 million members have not visited in a few months. McDonald’s has not disclosed the launch date or number of tiers. U.S. members could receive Uber ride credits and Disney+ subscriptions this year. Loyalty consultant Kate Hogenson said the strategy could encourage occasional diners to visit more often, but warned that execution and franchisee cooperation will determine its success.

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