McDonald's $MCD unveiled a new global growth strategy Monday called McDonald's > NEXT, built around menu innovation, new restaurant designs, improved efficiency, and a reimagined approach to customer service.
The company announced the plan at its biennial Worldwide Convention for franchisees, suppliers, and employees in Las Vegas, according to CNBC. Additional details, including financial targets, are expected at an investor event in September, the company said.
Replacing Accelerating the Arches — a plan launched at the end of 2020 that prioritized digital channels, delivery, drive-thru expansion, and marketing — McDonald's > NEXT marks a fresh strategic direction for the chain. Four areas anchor the plan: raising the bar on menu offerings, deepening consumer connections, boosting operational efficiency at individual locations, and rethinking what hospitality looks like as automation becomes a bigger part of the restaurant experience.
"Traditional competitors are upgrading their menus, and a new wave of specialists are emerging and redefining taste and quality across chicken, beef, and beverages," CEO Chris Kempczinski said in a memo to the company's global system, according to CNBC. "In a world where every restaurant is a swipe away, there is no such thing as second place," he added.
On the menu front, McDonald's is placing greater emphasis on chicken, beef, and beverages — categories where it sees growth potential beyond its core burger business. Competitors including Chick-fil-A have drawn chicken-focused diners away from McDonald's over the years, a challenge the chain has been working to address. New competitors cited include Raising Cane's and 7 Brew Drive Thru Coffee.
"We're raising the bar for our menu by improving quality and consistency at scale and innovating in spaces where we see growth potential and know matter to our customers, like chicken, beef and beverages," Jill McDonald, the chain's global chief restaurant experience officer, said in a statement.
A pilot program is underway at five U.S. locations using an automated ordering system the company has branded ARCHY, which is designed to free up staff for other tasks, CNBC reported. An updated restaurant design, meanwhile, aims to streamline back-of-house operations and reduce the complexity employees face during a shift.
The strategy arrives as McDonald's tries to hold onto lower-income customers who pulled back on restaurant visits following years of higher menu prices. UBS Evidence Labs surveys shared with Reuters found that the portion of U.S. customers rating McDonald's as a good value dropped from about 55% in 2020 to around 40% by 2024, a level that has largely held since.
"While perceptions of our value have rebounded in most markets, it's a reminder that we need to earn, and re-earn, each and every visit," Kempczinski said in a company-wide memo shared with Reuters.