McDonald’s to double down digital, delivery and drive-thru strategy by 2027

The chain unveils plans for expansion, loyalty programmes and cloud technology.

McDonald’s Corporation unveiled that it will double down digital, delivery and drive-thru development as part of its new growth targets as part of the advancement of its “Accelerating the Arches” strategy.

The goals include reaching 50,000 restaurants by 2027, expansion of its loyalty programmes to 250 million active users, and deployment of Google Cloud technology in 2024.

From 2019, McDonald’s has achieved a consistent performance with 30% sales growth through the “Accelerating the Arches” strategy. The overall strategy is defined by its “M-C-D” growth pillars: Maximize our Marketing, Commit to the Core, and Double Down on the 3Ds (Delivery, Digital, Drive Thru, and Development).

McDonald’s has also made a significant push for its channels. Through digital platforms, it plans to expand its base from 150 million 90-day active users for US$20b in Systemwide sales to 250 million users for US$45b, as well as initiate the US pilot of its “Ready on Arrival” programme.

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As for its delivery, McDonald’s expects a 30% increase in orders by 2027. For its drive-thru feature, with more than 27,000 locations, the chain has set to enhance the physical layout with additional lanes. And for development, its expansion to 50,000 locations by the end of 2027 is in place.

In utilising tech-driven solutions, McDonald’s has partnered with Alphabet’s Google Cloud for the usage of cloud technology and generative AI for automated operations and quick administration by crew and managers. It will also help speed up functions to deliver quality customer service.

“We have a clear trajectory for future growth as we continue to build on the brand strength, global footprint and digital ecosystem that has resulted in unparalleled competitive advantages and cemented McDonald's as one of the world's leading consumer-facing brands,” Chris Kempczinski, President and CEO of McDonald’s, stated.

For its marketing strategy, the leading chain has emphasised the importance of emotional connections and world-class creativity through its “Feel-Good Marketing” approach. Strategies like the “Raise Your Arches” campaign and personalised features in the McDonald’s app have elevated the brand to become one of the world’s top five most valuable, according to Kantar.

As for its signature menu, McDonald’s has committed to progressing and reinventing its items with plans to execute its Best Burger initiative to nearly all markets by 2026. Within the chicken sector, the chain has experienced its prominence to be on par with beef, thus investing more in its McNuggets, McChicken, McCrispy and McSpicy items. The menu item McCripsy is also set to be featured in all markets, including being featured as wraps and tenders.