McDonald’s Plans 10,000 New Restaurants by 2027

McDonald’s has revealed a roadmap to open nearly 10,000 new restaurants worldwide by 2027. The fast-food giant aims to have a total of 50,000 restaurants in operation, showcasing a pace of expansion. This announcement follows sales growth, innovative marketing campaigns, and strategic investments in technology, loyalty programs, and a small-format concept called CosMc’s.

McDonald's Plans 10,000 New Restaurants by 2027

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The expansion strategy is the introduction of CosMc’s, a new network of small-format shops focused on cold beverages.

The restaurant is set to open in Bolingbrook, Illinois, later this week, with plans to expand to about 10 locations in Chicago by the end of 2024.

The concept draws inspiration from a McDonaldland mascot, an animated orange figure with six arms, featured in the late 1980s and early 1990s advertisements.

CosMc’s aims to operate in the same market segment as Starbucks, offering a menu designed for those with a sweet tooth.

Items such as Churro Frappe and S’Mores Cold Brew are expected to be popular choices. Additionally, the menu will include a selection of McDonald’s staples, such as Egg McMuffins.

While the initial launch is in the U.S., CEO, Chris Kempczinski, hinted at the possibility of global expansion.

Company’s aggressive expansion plan includes the opening of 900 new restaurants in the U.S., 1,900 in international markets where it operates its own restaurants, and a 7,000 in its international licensed markets.

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China, the chain’s second-largest market, will see over half of these additions. The company envisions China becoming its largest market in the future, supported by a recent deal that grants greater control over its business in the region.

As plans to enhance its core menu items. The Best Burger initiative aims to introduce higher-quality burgers, impacting favorites like the Big Mac, McDouble burger, cheeseburger, double cheeseburger, and hamburger.

The company also plans to elevate its chicken business, making the popular McCrispy sandwich available in all markets by the end of 2025.

Digital transformation remains a focus for McDonald’s, with a commitment to invest in digital, delivery, and drive-through services.

The company reported systemwide digital sales reaching $9 billion in Q3, accounting for 40% of total sales across its six largest markets.

The goal is to grow the active loyalty user base from 150 million to 250 million 90-day active users by 2027, with a target of $45 billion in annual systemwide sales.

The Company has partnered with Google Cloud to enhance operations, customer experience, and crew efficiency.

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This collaboration, set to commence in 2024, will leverage generative AI at restaurants to accelerate innovation, reduce complexity, and ensure accurate orders.

The partnership reflects the commitment to staying at the forefront of technology and leveraging AI tools for operational efficiency.

China continues to be a focus for McDonald’s, with plans to expand its footprint from 6,000 to 10,000 restaurants by 2028.

CEO Chris Kempczinski expressed a very optimistic outlook on China, citing three factors: To add new restaurants, growing same-store sales, and improving margins.

The recent agreement to buy back Carlyle’s minority ownership stake in its China business for $1.8 billion underlines McDonald’s commitment to investments in the region.

McDonald’s is exploring generative AI as a tool to enhance operational efficiency. A partnership with Google Cloud involves testing an AI platform known as RGM Boss in China.

This platform aims to improve restaurant efficiency, with features such as automating staff scheduling, forecasting guest count accuracy, and reducing inventory check times. The move towards AI reflects McDonald’s dedication to leveraging technology for streamlined operations.

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