McDonald’s has unveiled plans to provide approximately $8.5bn in support to franchisees through 2036 to fund restaurant improvements across its global network.
Around $5bn of the total is expected to be allocated by 2030 through rent relief and capital assistance.
The funding will support restaurant refurbishment, technology upgrades, and operational changes. McDonald’s said the measures are intended to improve customer and employee experiences and raise productivity at individual restaurants.
The investment is part of the company’s McDonald’s > NEXT strategy, which follows its Accelerating the Arches plan.
NEXT focuses on menu development, personalised customer engagement, restaurant performance, and employee hospitality.
McDonald’s expects the programme to generate 250 basis points of gross restaurant-level efficiency. It said this would equate to around $100,000 in annual cash flow benefits for the average restaurant in the US.
Most of the gains are expected to reach the bottom line over time. Franchisees are projected to recover their investments in about four years after accounting for McDonald’s support.
Markets will set their own implementation plans based on local needs, franchisee capacity, and McDonald’s global systems.
McDonald’s > NEXT strategy will also be supported by Make It Golden, a systemwide programme launching on October 5 to improve food quality and hospitality.
McDonald's chairman and CEO Chris Kempczinski said: “McDonald's has the unmatched scale, customer insights, brand loyalty, and operational capabilities to not only adapt to the next wave of change in our industry, but to turn it into an advantage.
"That's what McDonald's > NEXT is about: to be the first choice for more customers, more often - while making our restaurants stronger and easier to run.
“We are confident that executing across the key components of NEXT will unlock stronger restaurant economics, generate attractive returns for the company, our franchisees and shareholders, and increase capacity to keep investing in growth."
