McDonald’s is going to invest $200 million in marketing to accelerate recovery after COVID-19

McDonald's is planning to invest about $200 million in its marketing in the USA and in top international markets to help its franchises recover after pandemic shutdown. This is spoken about in a video of the McDonald’s CEO Chris Kempczinski posted on the company’s website.

As of June 16, there are 95% of opened McDonald’s restaurants around the world, says in the company’s report. Comparable sales of the restaurants are strongly rising vs. late March, when many countries enforced quarantine. «Our strong foundation and unique advantages of the McDonald's system, including a high percentage of restaurants with drive-thru concept and investment in delivery and digital technology, allowed us to adapt to the changed playing conditions caused by the COVID-19 outbreak. I am confident in our ability to cope with the current challenges and get from the pandemic to a platform of competitive strength», – Chris Kempczinski said.

In the USA almost all McDonald's restaurants during quarantine continued to work with a trimmed-down menu through drive-thru, for delivery and/or takeaway. Currently, more than 1,000 restaurants in the country have already opened trading halls with a reduced number of seats. About 100 restaurants remain closed, mainly due to location (for example, in shopping centers).

As follows from the report, sales of comparable McDonald's restaurants in the USA in April 2020 went 19.2% down, in May - 5.1% against last year. The company notes a significant increase in the average check during quarantine, while the number of orders decreased, especially in the morning hours.

McDonald's comparable sales in international operated markets in April of this year decreased by 66.7%, in May - by 40.5%. The results were primarily influenced by the temporary closure of restaurants in the UK, France, Italy and Spain. In these countries, the chain's outlets, like the entire HRI business, were completely closed in April. In May, France, Italy and Spain began to ease restrictions and to open food servicing. Now service in one form or another is available in almost all McDonald's restaurants in these countries.

In the UK, restaurants began to open in June. It is planned that by the end of the month all British outlets of the chain will work for delivery and drive-thru.

In Germany and Austria, almost all McDonald's restaurants opened in May, including trading halls with a limited number of seats.

In Canada and Russia, some of the chain's restaurants are still closed. They are planned to open with limited seats by the end of June and July, respectively.

SOURCE: FoodService