McDonald's will make menus less like fast food: it's first strategy shift in 6 years

McDonald's, the world's largest fast food chain by sales, announced that it will unveil a new corporate strategy at a worldwide meeting of franchisees and suppliers in Las Vegas, June 1-4. The strategy, titled "McDonald's>NEXT," calls for increased automation, higher service standards, aggressive use of social media in marketing, and improved flavor of burgers and fries. Meanwhile, the company promised to provide investors with more detailed information, including financials and targets, in September.

McDonald's is betting on everything from more gourmet chicken to new play areas as part of a campaign to make fast food less like fast food, Bloomberg writes. New menu items including hand breaded chicken wings and fillets are already being tested, the agency writes.

With the new strategy, McDonald's expects to make its restaurants "easier to manage and more enjoyable to visit," McDonald's director of customer experience for McDonald's restaurants Jill McDonald said, she was quoted as saying in a company statement.

McDonald's will continue to emphasize affordability and speed, but customers are "really demanding more for their money," CEO Chris Kempczynski said in an interview with Bloomberg. He said consumer expectations have risen as competitors revamp menus and offer new options in fast-casual categories such as chicken, beef and beverages. That raises the bar for McDonald's, especially amid accelerating inflation and worsening consumer sentiment. "It's much more important these days to provide an even better experience," Kempczynski said.

McDonald's previous corporate strategy, "Accelerating the Arches," was introduced in 2020 and focused on driving digital sales and strengthening marketing efforts, Reuters recalls.

The company announces the new strategy at a time when it is trying to retain low-income customers who have become less likely to visit restaurants after several years of price increases. To attract customers, the chain relies on lucrative combo sets, offers for loyalty program members and temporary menu items.

According to a UBS Evidence Lab survey Reuters looked at last month, the share of U.S. consumers who think McDonald's is good value for money fell from 55% in 2020 to about 40% in 2024 and has remained around that level ever since.

"While perceptions of our price appeal have rebounded in most markets, this is a reminder that every customer visit must be earned over and over again," CEO Chris Kempczynski said in a memo quoted by Reuters.

McDonald's sales in the U.S. have grown faster than the fast food market as a whole for four consecutive quarters, according to data from research firm Technomic cited by Bloomberg. That's been fueled by flashy campaigns, such as Minecraft-inspired menus, and a lineup of bargain offers that have attracted price-sensitive customers. Now the company wants to keep that momentum going, the agency explains. But there's a downside: McDonald's is so stable and predictable that "very little about an individual visit or order is memorable," said Technomic senior director Robert Byrne. So now the restaurant chain's management will have to answer franchisees' questions about how McDonald's can differentiate itself more strongly from competitors, Bloomberg explains.

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