QSR August 2022

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To start fiscal 2022, in those six markets, digital sales (mobile app, kiosks, delivery) accounted for more than 30 percent of systemwide sales. That equates to nearly 60 percent year-year-over expansion. In the U.S., McDonald’s generated over $2 billion in digital sales in just Q1 2022. Delivery also ballooned to more than 33,000 restau rants in 100 countries. CEO Chris Kempczinski said in April McDelivery is now the largest quick-service deliv ery program in the world. Direct delivery is coming to the brand’s U.S. app later in the year. McDonald’s, which in 2022 held its first worldwide convention in four years, ended 2021 with 13,443 domes tic locations, a net decline of 239 stores. Globally, there were a tick more than 40,000 following net growth of 838 (China expanded by 608 units, the most of any country). To sum up an eventful calendar, Kempczinski noted, “It’s clear there has never been a better time to be a part of brand McDonald’s than right now.”

2 Starbucks

Speaking of jam-packed years, few chains in quick ser vice are undergoing as many changes as the java giant. It’s a conversation that starts at the top. In March 2022, Starbucks announced president and CEO Kevin John son’s plans to retire. Stepping into the interim role was none other than founder Howard Schultz, who previ ously served as CEO from 2008–2017 and 1985–2000 and as president from 2008–2015 and 1985–1994. In that wide stretch, Starbucks scaled from an 11-store brand with 100 employees to more than 28,000 locations in 77 countries. And Schultz had no shortage of tasks ahead. He took a base salary of $1 and began tackling a topic Star bucks hadn’t quite faced before. The brand suddenly had more demand on its hands than it could serve to stan dard, which, from a certain angle, is a decent problem to have. But nonetheless, a rather expensive one to fix. As Schultz put it in May: “Simply said, we do not, today, have the adequate capacity to meet the growing demand for Starbucks coffees.” Schultz credited COVID and the brand’s diverted focus to navigating the crisis. In turn, disruptions inter fered with Starbucks’ ability to anticipate and invest ahead of the market. It didn’t adjust store designs, oper ations, infrastructure, or tech to service that “relentless demand.” Perhaps the most publicized corner of this concerns

higher in Q1 2022 versus the prior year). Traffic remained on pace with 2019, for the most part, with monthly dining visits rising 2.1, 3.8, and 1.1 percent in August, October, and December, respectively, according to mobile loca tion analytics platform Placer.ai. While in-store guest counts continue to adjust, McDonald’s digital sales surpassed $18 billion—also a record—and mixed more than 35 percent of its top six markets. In some, digital accounts for more than 50 per cent of sales, like China and France. The single-biggest driver of digital adoption was MyMcDonald’s Rewards, which launched nationally in July. It lifted to more than 30 million loyalty members by year’s end, including 21 million active users. To date, the program has boosted frequency among members by more than 10 percent.

DINE-IN RETURNED TO McDONALD’S, BUT ITS DIGITAL SALES ARE REWRITING THE RECORD BOOKS, UP TO $18 BILLION IN 2021.

McDONALD’S, STARBUCKS / MATT GLAC

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