What Small Businesses Can Learn from McDonald's £1B Loyalty Strategy (For Just £15/Month)

Jul 19, 2025

You can't compete with McDonald's.

They open a new restaurant every 14.5 hours. They feed 69 million people daily—that's 1% of the entire world's population. They sell 75 burgers per second. They spend nearly $1 billion annually on advertising alone.

Your coffee shop serves 150 customers a day. Your barbershop has three chairs. Your salon runs on Instagram posts and word-of-mouth.

So why am I telling you to study McDonald's loyalty strategy?

Because you're misunderstanding what makes it work.

McDonald's success isn't about the billion-dollar ad budget or 38,000 global locations. Strip away the scale, and what remains are two brutally simple principles that have driven their business since the 1950s:

  1. Increase frequency of visit (FOV)

  2. Increase average transaction value (ATV)

That's it. Every decision, every app feature, every promotion, every notification—designed to make customers come back more often and spend more per visit.

And here's what nobody tells you: These principles scale down perfectly.

The tactics McDonald's uses through their mymaccas app—push notifications, behavioral targeting, gamification, mobile ordering, data-driven personalization—aren't exclusive to billion-dollar corporations anymore. The technology that powers their digital engagement is now available to small businesses for less than the cost of a daily coffee.

Let me show you what's actually worth stealing.

The Two Metrics That Matter (For McDonald's and For You)

McDonald's entire digital strategy revolves around FOV and ATV. Let's translate this to your business:

Frequency of Visit = Customer Retention + Visit Acceleration

Your average customer visits every 6 weeks. What if you could make it every 5 weeks?

The math:

  • Current: 8.7 visits per year

  • Accelerated: 10.4 visits per year

  • Difference: +1.7 visits annually

For 200 customers spending £35 average:

  • Additional visits: 340

  • Additional revenue: £11,900/year

McDonald's does this through targeted push notifications sent at strategic times (10:30am for lunch seeding, dinner time for evening meals, walking past a location). You can do the exact same thing.

Average Transaction Value = Upselling + Basket Building

McDonald's invented "Would you like fries with that?" They make upselling effortless through their app with pop-ups suggesting add-ons during digital ordering.

Your barbershop equivalent: "Add a beard trim for £8?" Your café equivalent: "Upgrade to our Morning Set—coffee + pastry for £4.80 instead of £5.50 separately?"

The math: If 25% of customers accept an £8 upsell once every 3 visits:

  • 200 customers × 8 visits/year = 1,600 transactions

  • 400 successful upsells (25% of 1,600)

  • Additional revenue: £3,200/year

  • At 45% margin: £1,440 profit

These aren't complex strategies. They're basic behavioral economics executed systematically.

What McDonald's Does That You Can't (And Shouldn't Try)

Let's be honest about what's NOT replicable:

1. $1 billion annual advertising budget You're not running Super Bowl ads. You're not buying billboard space across London. You're not doing cross-promotions with Disney films.

2. Proprietary app development McDonald's spent millions building custom apps. You're not hiring a development team.

3. Wall-mounted ordering kiosks The hardware infrastructure to replace counter service with tablets costs hundreds of thousands. Not happening.

4. Dedicated data science teams They have analysts optimizing notification timing down to the minute based on weather, location, purchase history. You don't.

Here's what matters: You don't need any of that.

Because the principles behind what makes their digital loyalty work are completely divorced from the scale and budget.

What McDonald's Does That You CAN Replicate (The Scalable Tactics)

Let's break down the mymaccas app's actual functionality and show you the small business equivalent:

1. Push Notifications to Customer Phones

What McDonald's does:

  • Sends notifications at 10:30am to plant lunch seed

  • Sends location-based offers when customer is near restaurant

  • Sends personalized offers based on purchase history ("Your usual Big Mac for £2.99 today only")

  • Sends urgency-driven promotions ("Get in quick or miss out")

  • Sends social offers ("Bring a friend, 2 Big Macs for £6")

What this costs McDonald's: Millions in app development and maintenance

What this costs you with Perkstar: £15/month

Digital loyalty cards in Apple/Google Wallet support push notifications. Your barbershop can send:

  • "It's been 6 weeks since your last cut—book this week for double points"

  • "You're 2 stamps away from a free cut—come in before Friday"

  • "Bring a mate this week—you both get £5 credit"

Open rates:

  • McDonald's push notifications: 50-70%

  • Your email newsletter: 20% (if you're lucky)

  • Your Instagram post: 5-8% of followers

Push notifications are the highest-engagement channel available to you. McDonald's knows this. Now you do too.

2. Data-Driven Personalization

What McDonald's does: Every transaction through the app collects data: what you order, when you order, where you order, how often you order. This builds a profile.

Then they use it:

  • "You tend to buy a lot of McNuggets—want to replace fries with McNuggets for £1 extra?"

  • "Half-price on your favourite burger today only"

  • Notifications timed for your personal lunch schedule

What you can do: Track customer purchase history through digital loyalty. Customer always gets cut + beard trim? Staff can proactively offer: "Your usual cut and beard today?"

Customer buys the same coffee every Tuesday and Thursday at 8am? Send notification Tuesday 7:45am: "Your usual flat white waiting—order now for pickup."

This isn't creepy. This is remembering preferences. McDonald's has proven customers love it.

3. Gamification and Surprise-and-Delight

What McDonald's does: McDonald's Monopoly campaign. Scan codes, play mini-games, win instant prizes, track progress on virtual board, compare winnings with nearby players.

First year of the app: 2.5 million downloads in Australia/NZ in weeks. Most downloaded free app during promotion.

Why it works:

  • Registration is easy

  • Gameplay is simple

  • Rewards are instant

  • Odds are good (1 in 5 wins something)

  • Big prizes create aspiration (cars, holidays)

  • Small prizes cost them nothing (free burger = £2 cost, generates £15 transaction)

What you can do: You're not building a Monopoly app. But you CAN implement surprise rewards.

Coffee shop example: Random "lucky customer" notifications—"You're our 50th customer today, this coffee's on us!"

Barbershop example: Monthly random draw from loyalty members for free premium service (cut + hot shave + products = £15 cost, £50 perceived value)

Salon example: "Spin the wheel" at checkout via your tablet—customer wins discount, free product sample, or upgrade to premium service

The economics:

  • Cost: £100-300/month in random rewards

  • Value: Customers talk about it (word of mouth), post about it (social proof), come back more frequently (trying to win again)

  • ROI: One surprised customer tells 8 people on average. That's £12-38 per new customer awareness vs. £60-120 for paid ads.

4. Convenience Through Mobile Ordering

What McDonald's does: Order and pay through app. Food ready when you arrive. Three pickup options: counter, table service, drive-thru.

Removes friction. Removes waiting. Removes wallet.

What you can do with Perkstar: Mobile ordering integrated into digital loyalty cards. Customer taps card in wallet → sees menu → orders → pays → picks up.

Coffee shop: "Order your usual flat white for pickup in 8 minutes" Takeaway restaurant: "Order dinner on your way home from work, ready when you arrive"

Impact: Businesses using mobile ordering see 15-25% increase in weekly order frequency because you've eliminated friction.

5. Staff as App Evangelists

What McDonald's does: Staff are trained to promote the app. Kiosks are positioned prominently. Counter service is deliberately de-emphasized.

Translation for you: Make digital loyalty enrollment part of standard checkout procedure.

Train staff to say: "Let me add you to our loyalty program—takes 5 seconds, you'll have it in your phone wallet."

Not: "Do you want to join our loyalty program?" (50% say no) But: "I'm adding you to our loyalty program—show me your phone." (80% comply)

McDonald's proved that assumption of enrollment beats asking for enrollment.

6. Targeted Offers That Actually Target

What McDonald's does: No generic "10% off" blasts. Every offer is tailored:

  • Lunch buyers get lunch promotions

  • Breakfast buyers get breakfast promotions

  • McNugget fans get McNugget promotions

  • Families get family meal promotions

  • Solo customers get single-item deals

What you can do: Segment your customer base by behavior (data from loyalty program):

  • Weekday lunch regulars: "Your usual lunch spot misses you—20% off Monday-Friday this week"

  • Weekend diners: "Saturday prime time—book now for first access"

  • Product category customers: Color-only clients get treatment promotions, cut-only clients get color promotions (category expansion)

Generic broadcast: 12% redemption rate Targeted segment: 28% redemption rate

The difference: 16 percentage points of effectiveness = 133% improvement in ROI per promotion.

The Economics: McDonald's Scale vs. Your Scale

Let's be brutally honest about the investment comparison:

McDonald's digital loyalty infrastructure:

  • Custom app development: £5-15 million

  • Annual app maintenance: £1-3 million

  • Data analytics team: £500k-1M annually

  • Marketing/promotion budget: Tens of millions

  • Total annual investment: £20-50 million+

Return: Increased FOV and ATV across 69 million daily customers = billions in additional revenue

Your digital loyalty infrastructure (Perkstar):

  • Setup: 2-3 hours or free hands-free setup

  • Annual cost: £180 (£15/month)

  • Staff training: 30 minutes

  • Total annual investment: £180

Return: Increased FOV and ATV across 200-500 customers = £10,000-40,000 additional revenue

McDonald's ROI: ~100-200x Your ROI: ~5,000-20,000x

Your ROI is actually BETTER at small scale because your investment is proportionally tiny.

The Principles That Actually Scale

Here's what you steal from McDonald's:

✓ Frequency thinking: Every tactic asks "will this make them come back sooner?"

✓ Transaction value thinking: Every interaction asks "can they spend £3 more right now?"

✓ Data collection: Every transaction captured, analyzed, used for future targeting

✓ Push notifications: Highest-engagement channel, used strategically not spammily

✓ Behavioral triggers: Automated outreach based on customer patterns, not calendar dates

✓ Convenience worship: Remove every friction point possible from ordering/paying/returning

✓ Surprise and delight: Random rewards that cost little but create disproportionate loyalty

✓ Staff alignment: Everyone trained to promote loyalty enrollment and upsells

✓ Personalization at scale: Treating each customer differently based on their history

What you DON'T steal:

✗ Billion-dollar ad budgets ✗ Custom app development ✗ Physical infrastructure overhaul ✗ Mass market positioning

Implementation: The McDonald's Playbook for Small Businesses

Week 1: Set up digital loyalty infrastructure

  • Choose your loyalty structure (stamps, points, or tiers)

  • Set reward economics (aim for 8-12% of customer spend)

  • Design your loyalty card or use templates

  • Time required: 2 hours or use hands-free setup

Week 2: Train staff on enrollment

  • Practice the 5-second enrollment process

  • Role-play the assumptive enrollment script

  • Align incentives (bonus when shop hits 70% enrollment)

  • Time required: 30 minutes

Week 3-8: Enroll existing customers

  • Make it standard checkout procedure

  • "I'm adding you to our loyalty program—takes 5 seconds"

  • Goal: 60-70% of regulars enrolled in 6 weeks

Month 3: Activate McDonald's tactics

Push notifications:

  • Lapsed customers (haven't visited in X weeks): "We miss you—double points this week"

  • Near-reward customers: "You're 2 visits from reward—come in soon"

  • Birthdays: "Happy birthday! £5 credit waiting for you"

Behavioral targeting:

  • Lunch regulars get lunch promotions

  • Evening customers get evening promotions

  • High-spenders get premium offers

  • Low-frequency customers get frequency incentives

Convenience features:

  • Enable mobile ordering if applicable

  • Streamline checkout process (scan loyalty card = auto-apply rewards)

  • Remove friction (saved payment info, one-click reorder)

Gamification:

  • Monthly random prize drawings

  • "Lucky customer of the day" surprise rewards

  • Milestone celebrations (100th visit, £500 total spent)

Staff upselling:

  • Train on complementary suggestions

  • "Add X for just £Y today"

  • Pop-ups during mobile ordering suggesting add-ons

Review/referral generation:

  • Reward Google reviews (£5 credit)

  • Reward referrals (£15 for you, £10 for friend)

  • Track automatically through unique codes

Month 6: Analyze and optimize

  • Review redemption rates (rewards being used?)

  • Check visit frequency changes (FOV improving?)

  • Measure average spend changes (ATV increasing?)

  • Segment top performers vs. low engagers

  • Adjust structure based on data

The Bottom Line: Principles Over Budget

McDonald's doesn't win because they outspend you. They win because they out-system you.

Their digital loyalty program works because it's built on timeless behavioral economics:

  • Make it easy to return (convenience, reminders, incentives)

  • Make them spend more per visit (upsells, bundles, offers)

  • Use data to personalize (relevant > generic)

  • Remove friction relentlessly (mobile ordering, saved payment, one-tap)

  • Surprise and delight randomly (variable rewards beat predictable rewards)

These principles cost nothing. The infrastructure to execute them costs £15/month.

McDonald's spends a billion on marketing because they're operating at global scale. You're operating at local scale. Your advantage is that at small scale, the relationship combined with the system is unbeatable.

McDonald's can't know your customer's name, remember their usual order, ask about their kids, or customize service to their preferences. You can.

But without the system—without digital loyalty tracking, automated engagement, push notifications, behavioral data—you're running on hope and memory.

McDonald's has system without relationship. You can have system AND relationship. That's a competitive advantage they literally cannot replicate.

The question is: Will you build the system, or keep winging it?

Because your competitor down the street is reading this same case study. And they might get there first.

Perkstar gives you McDonald's digital loyalty infrastructure for £15/month. 14-day free trial, no credit card required. Test the FOV and ATV tactics with your actual customers.

Because McDonald's proved these principles work. Now you just need to execute them at your scale.

Start your free trial →

Want to discuss which McDonald's tactics fit your specific business model? We're here. WhatsApp, phone, email—talk to actual humans who've helped hundreds of small businesses implement enterprise-level loyalty strategies.

About the Author

Michael Francis is the founder of Perkstar, a digital loyalty platform used by salons, barbers, cafés, restaurants, and local businesses across the UK and internationally. Michael works directly with business owners to design high-performing loyalty systems that increase visit frequency, average spend, and customer retention. His writing is based on real-world economics, data, and hands-on experience helping small businesses transition from outdated paper cards to modern digital loyalty programs.

About the Author

Michael Francis is the founder of Perkstar, a digital loyalty platform used by salons, barbers, cafés, restaurants, and local businesses across the UK and internationally. Michael works directly with business owners to design high-performing loyalty systems that increase visit frequency, average spend, and customer retention. His writing is based on real-world economics, data, and hands-on experience helping small businesses transition from outdated paper cards to modern digital loyalty programs.

Turn every client into a regular

Join 2,000+ businesses using Perkstar to build lasting

loyalty and boost repeat sales

Turn every client into a regular

Join 2,000+ businesses using Perkstar to build lasting loyalty and boost repeat sales