🍟Program Evolution

Evolving McDonald's Rewards with Loyalteez

McDonald's MyRewards is simple but closed. Here's how network effects can amplify that 5% return across an ecosystem.

February 6, 202610 min readBy Loyalteez Team
program-evolutionmcdonaldsqsrfast-foodrewards
MyMcDonald's Points
Simple But ClosedLow ValueMcDonald's Only
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McDonald's MyRewards gives ~9.6% back. Simple. But that 9.6% only works at McDonald's. What if your Big Mac earned you value everywhere?

McDonald's has loyalty done simply: 100 points per $1, four redemption tiers, no status levels, immediate gratification. 35.7 million members. 40%+ digital sales. It works. But it's a closed loop—points earned at McDonald's can only be spent at McDonald's.


The Old Model: MyMcDonald's Points

Metric Value
Active Members 35.7 million (U.S.)
Earning Rate 100 points per $1
Return Rate ~9.6%
Digital Sales 40%+ of systemwide
Expiration 6 months without activity

Redemption Tiers

Points Reward Value
1,500 McChicken, Cheeseburger ~$2-3
3,000 6pc McNuggets, Medium Fries ~$3-4
6,000 Big Mac, Quarter Pounder ~$5-6

Spend $60 → 6,000 points → Big Mac (~$5.79) = ~9.6% return. Generous for QSR.


Where McDonald's Falls Short

  1. Closed-loop — Points only work at McDonald's; zero acquisition power from program
  2. App-only — No card, no web redemption; limits accessibility
  3. 6-month activity — Must transact to keep points alive (soft expiration)
  4. High redemption cost — 9.6% return is expensive; franchisees bear the cost

The Loyalteez Redesign

McDonald's already invests ~9-10% in rewards. Reallocate:

Category Percentage Purpose
LTZ Token 3% Portable, universal—ecosystem distribution
Perks 4% Exclusive McDonald's experiences and items
Total 7% Lower cost, higher ecosystem value

The Acquisition Flip

McDonald's creates perks redeemable with LTZ: free menu items, secret menu access, early access to new products, exclusive merchandise.

Now flip it: Customers earning LTZ at Starbucks, gas stations, grocery stores—they can all redeem at McDonald's for perks. That's not retention. That's acquisition.

The QSR that opens its ecosystem first wins the network effect. Everyone competes on return rate in closed ecosystems. McDonald's with Loyalteez: 7% portable + acquisition from ecosystem.

How to Implement It

// McDonald's order
await fetch('https://api.loyalteez.app/loyalteez-api/manual-event', {
  method: 'POST',
  headers: { 'Content-Type': 'application/json' },
  body: JSON.stringify({
    brandId: process.env.LOYALTEEZ_BRAND_ID,
    eventType: 'place_order',
    userEmail: customer.email,
    domain: 'mcdonalds.com',
    metadata: {
      order_id: order.id,
      order_value: order.total,
      // Crosswalk: Old model = 100 pts per $1
      legacy_points_equivalent: Math.floor(order.total * 100),
      // Loyalteez: 3% = 30 LTZ per $1
      ltz_earned: Math.floor(order.total * 30),
      drive_thru: order.isDriverThru,
      app_order: true
    }
  })
});

// Perks replace point redemptions
// 150 LTZ = Free McChicken (was 1,500 points)
// 600 LTZ = Free Big Mac (was 6,000 points)

See: Event Handler API


Before/After Summary

For McDonald's

Current Model Loyalteez Model
~9.6% return, zero portability 7% (3% LTZ + 4% perks), ecosystem-wide acquisition
Retention only Acquisition + retention
Franchisees fund discounts for existing customers Perks bring new customers; existing earn portable value

For Customers

Current Model Loyalteez Model
Points belong to McDonald's LTZ belongs to customer
Points only work at McDonald's LTZ works everywhere
6-month activity requirement No expiration. Ever.

The Headline

McDonald's Rewards already works. 35.7 million members. 40%+ digital sales. Simple math.

Now imagine: That value portable. That brand accessible. That investment lower (7% vs. 9.6%). That growth network-driven.

McDonald's doesn't need to reinvent loyalty. McDonald's needs to open it.

The QSR that connects to the ecosystem first creates the moat.

See Also

Ready to evolve your loyalty program?

See how Loyalteez adds network reach to your existing program, making rewards portable across the ecosystem.