McDonald's Tries Loyalty Overhaul, $8.5B Franchisee Bet to Revive Customer Visits

McDonald's is revamping its loyalty program to a tiered structure, separating high-frequency regulars from occasional diners in an effort to deepen customer relationships and increase visit frequency. This move comes as restaurant operators increasingly focus on retaining existing customers rather than chasing new ones.

The company is also committing $8.5 billion to support its franchisees over the long haul, with roughly $5 billion of that sum set to flow by 2030. This funding will pair with concrete operational targets through the end of the decade, including a market-share gain of 1.5 percentage points in the chicken and beverage categories.

The chain's use of machine-learning-based pricing tools has raised eyebrows, potentially attracting regulatory attention as it works to shore up customer goodwill through its rewards changes. McDonald's is also launching a system-wide retraining program for restaurant employees to improve service, focusing on three pillars: customer experience, food quality, and hospitality.