McDonald’s is preparing for a major overhaul of its restaurants, technology, workforce and menu as the fast-food giant seeks to attract customers more frequently amid intensifying competition and pressure on the broader dining-out industry. The company plans to provide about $8.5 billion in support through 2036 under its new “McDonald’s NEXT” strategy, with around $5 billion expected to be committed by 2030.
The investment will be directed towards restaurant renovations, technology upgrades, franchisee support, employee training and menu innovation. McDonald’s said the strategy is designed to increase customer visits while making restaurants more efficient to operate. The company’s plans come at a time when it has faced slower sales growth, competition from other fast-food brands and changing consumer preferences.
A significant portion of the spending will support franchisees through rent relief and capital assistance. McDonald’s expects the investments to help restaurants modernise their facilities and introduce new technology. The company estimates that its restaurant-level efficiency initiatives could generate roughly $100,000 in additional annual cash flow for an average US restaurant once the changes are implemented.
Restaurants will undergo extensive redesigns as part of the programme. Planned changes include larger dining and play areas, improved lighting, redesigned kitchens and other upgrades intended to improve the experience for customers and employees. McDonald’s is also looking at ways to simplify restaurant operations so that workers can spend more time on food preparation and customer service.
Artificial intelligence will play a major role in the new strategy. McDonald’s plans to expand the deployment of its generative-AI-enabled ArchIQ operating system to help restaurants with operational tasks. The company has also been expanding AI-based technology for drive-thru ordering and other functions. The broader objective is to improve speed, accuracy and efficiency without making the customer experience more impersonal.
The company is also changing its menu in response to evolving eating habits. McDonald’s is testing products aimed at customers seeking higher-protein meals and different portion sizes. Among the items being tested are burger bowls, chicken bowls, egg bites and additional grilled chicken options, including wraps. The company is also looking to expand its chicken offerings as competition from chicken-focused fast-food chains grows.
McDonald’s has identified protein as an important area of opportunity. Its US business estimates that around 60 million Americans are actively looking for more protein in their diets. The company is also monitoring changes in eating patterns linked to the growing use of GLP-1 medications, according to its executives.
Coffee and beverages are another focus of the strategy. McDonald’s intends to upgrade coffee-making equipment and introduce more choices, including alternative milk options. The move comes as beverage-focused restaurant chains have expanded their presence and attracted customers with speciality drinks.
Value will remain another central part of McDonald’s efforts. The company is considering changes to its value-menu strategy after acknowledging that it had too many promotions operating simultaneously. Executives have said the large number of offers created operational difficulties for restaurants and affected service. A revised value menu could replace the recently introduced “$3 and Under” offering, while existing meal deals will continue to form part of the company’s affordability strategy.
Employee training is also being given greater importance. McDonald’s plans to begin a new training programme on October 5 covering its workforce worldwide. The initiative is intended to improve food preparation, hospitality and customer interactions. The company has acknowledged that consistency in restaurant execution has been an area requiring improvement.
The strategy comes as McDonald’s faces a challenging competitive environment. Burger King recently reported an 8.5% increase in US same-store sales for the latest quarter, while McDonald’s has also faced competition from newer beverage chains and chicken-focused restaurants. At the same time, persistent inflation has continued to influence consumer spending on dining out. McDonald’s chief executive Chris Kempczinski has warned that industry traffic could remain flat while inflation remains elevated.
McDonald’s has set additional longer-term targets under the NEXT strategy, including gaining 1.5 percentage points of market share in both the chicken and beverage categories by 2030 while maintaining its position in beef. The company is also targeting operating margins in the low-to-mid 50% range by 2030.
The company’s shares fell sharply after the strategy was unveiled, reflecting investor concerns over the scale of the investment and the time required for the changes to produce results. Media reported that the stock fell as much as 6.5% during trading on September 23.
For customers, the changes are expected to become visible gradually, from redesigned restaurants and expanded play areas to new menu options, improved coffee offerings, greater use of technology and a renewed focus on employee service. McDonald’s has positioned the decade-long investment as an effort to strengthen its existing restaurant network while adapting to changing consumer expectations and a more competitive fast-food market.
