McDonald’s is making a big push to win back the budget-conscious customers who have been drifting away in recent years.
To that end, the fast food giant rolled out a new strategy this week called ‘McDonald’s > NEXT.’
The point of it is to make the McDonald’s restaurants easier and more profitable to run for franchisees. The plan centers on four areas: increased automation and productivity in stores, elevated hospitality and service standards, heavier investment in social media and fan engagement, and improved food quality and taste.
Sequoia Capital partner Konstantine Buhler, a frequent commentator on business and technology trends, broke down the plan on Fox Business’ The Claman Countdown (2008 – Present), while McDonald’s CEO Chris Kempczinski laid it out for franchisees and staff in a separate internal message.
The strategy comes against the backdrop of a value crisis.
Lower-income customers have been visiting less often, worn down by years of high prices. According to a UBS Evidence Lab survey shared with Reuters last month, the percentage of U.S. customers who viewed McDonald’s as good value fell from 55% in 2020 to roughly 40% in 2024, and that has yet to recover.
The new plan replaces McDonald’s previous major initiative, ‘Accelerating the Arches,’ which was launched in 2020 and focused primarily on digital ordering, delivery, and marketing.
Sources: McDonald’s, Fox Business, Index Box, Reuters