Golden Opportunity.
McDonald's has launched a promotion that sounds almost too good to be true. It's a simple offer: rewards members can claim free medium fries with a minimum $1 purchase, once per week. Pull your camera back from the close-up of golden fries, and you'll see the strings attached. Customers must place their order through the McDonald's app, and availability varies. Only participating locations are partaking, and there's a deadline looming: October 4. After that, the offer expires. With 88.9% of its restaurants are franchises, McDonald's is largely relying on these owner-operators to make the offer happen. Variable participation is understandable. Still, the timing could hardly be better. Despite economic uncertainty, McDonald's customers rank affordability as their top priority. Or if you believe CNBC's Scott Wagner, it's just sunk costs in trade for customer retention. Either way, it's a win for McDonald's. Inflation is making everything cost more, but food is one of the items most affected. Supermarket prices climbed 13.5% in September 2022.
Digitally enabled.
The world is increasingly digital, and McDonald's is no stranger to leveraging technology. With this promotion, the fast food giant is expressing confidence in its app. To claim the free fries, customers must complete a purchase of at least $1 through the app. This encourages users to become more familiar with the platform, driving engagement and potential future orders. The promotion has additional incentives: it is only valid for rewards members, and users must claim their free fries in-store. This could encourage sign-ups and in-store visits, a key strategy post-COVID. Customers grew wary of delivery and carryout during the pandemic, preferring to avoid contact.
In-store experiences.
Scent is a powerful tool for food retailers, and McDonald's packs a punch. Ambush consumers with its golden fries scented recipe and people are hardwired to salivate. In-store pick-ups come from the drive-thru. Drive-thrus aren't just for cars: two-thirds of customers walk up. Walking in, though, can be an order of magnitude more profitable for McDonald's. Face-to-face interactions can boost upselling. Sales are higher when order takers ask customers if they want to "supersize" their meals. A 2019 study by the National Restaurant Association found that more than three-quarters of consumers expect restaurants to offer mobile applications. If this is the case, it could be a smart play by McDonald's to encourage more in-app purchases. Driving foot traffic in-store. With restricted seating in the pandemic, this could mean more sales for McDonald's. Customers can still enjoy their free fries in the comforts of their own home, or while watching another close-up of golden fries at their favourite local.
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