McDonald’s charts ‘NEXT’ course as competition sharpens

The new strategy aims to drive growth and productivity by bringing in more customers.

McDonald’s has outlined a new internal direction, “McDonald’s NEXT,” which it frames as the next phase of its business strategy.

The company described “McDonald’s NEXT” as its ambition to be the customer’s first choice every time.

It said the framework is intended to unlock the next phase of growth and productivity by bringing in more customers more often and improving unit economics.

McDonald’s added that “NEXT” defines the overall direction, whilst execution will vary by market depending on local customers and crew conditions.

It said alignment across the system will be key to implementation.

The company revisited its original operating promise, attributed to founder Ray Kroc: great-tasting food, served with a smile, at a good value, with a focus on customer service.

It stated that its system has been strengthened in recent years through the development of its loyalty programmes, deeper connections to culture, and expanded operational capabilities.

Despite these developments, the company said it is now focused on what comes next, describing a shift in the competitive landscape and in customer expectations.

According to the statement, traditional competitors are upgrading menus whilst a new set of specialist players is emerging, reshaping expectations around taste and quality across chicken, beef, and beverages.

It also noted that increased automation in the customer journey is reducing interactions between customers and crew, which it said raises expectations for hospitality when those interactions do occur.

The company also pointed to inflation as a continuing factor shaping customer behaviour, stating that consumers depend on consistent value and that perceptions of value must be continually earned and re-earned.

The company said it will rededicate itself to its original promise, updated to reflect current conditions affecting customers and employees.