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World

McDonald’s to spend $8.5 billion: What customers can expect from the new strategy

Hindustan Times - World ·
McDonald’s to spend $8.5 billion: What customers can expect from the new strategy

McDonald’s is planning a major $8.5 billion spending push to improve its restaurants, employees and menu as it tries to bring more customers back. The fast-food giant said it will spend $8.5 billion by 2036 on several changes across its business. The plan includes remodeling restaurants, training employees and adding new food items, especially for customers looking for more protein.

McDonald’s will spend about $5 billion in the next three-and-a-half years alone. That $5 billion will include financial support for franchise owners and rent relief, along with money for restaurant improvements. The spending is part of a new multiyear strategy called “Next.” The company said the goal of “Next” is to make McDonald’s the first choice for more customers and get people to visit more often.

CEO Chris Kempczinski said the strategy is also meant to make McDonald’s restaurants stronger and easier to operate, according to CNN. McDonald’s said this in a press release. The company is making these changes as it faces stronger competition from other fast-food chains. McDonald’s recently reported its slowest quarterly growth since 2025, showing that the company needs to attract more customers.

McDonald’s blamed the recent slowdown partly on too many promotions, weak customer service and a major World Cup promotion that did not bring in as many customers as expected. The wider restaurant industry is also facing pressure because food prices have increased, making some customers less willing to eat out. McDonald’s shares have fallen about 20% this year, according to CNN.

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A large part of the new spending will go toward remodeling McDonald’s restaurants. McDonald’s requires its franchise restaurants to undergo a remodel every 10 years. The new restaurant designs will include larger dining areas, bigger play areas and better lighting.

McDonald’s also plans to redesign its kitchens. The new kitchens will use AI tools to help restaurants work faster and more efficiently. McDonald’s expects the new kitchen technology to help each restaurant generate about $100,000 more in cash flow through savings, according to the company.

McDonald’s is also changing its menu as it tries to respond to changing customer tastes and competition. The company is focusing on customers who want more protein in their meals. McDonald’s estimates that the market includes about 60 million Americans looking for more protein, along with about 30 million GLP-1 users. The company is testing several new food options aimed at these customers. These include burger bowls, chicken bowls and egg bites.

McDonald’s is also testing more grilled chicken options, including grilled chicken in wraps. Skye Anderson, president of McDonald’s USA, said customers want more protein, different portion sizes and food that makes them feel full without feeling like they ate too much, according to CNN.

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