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.
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
- Closed-loop — Points only work at McDonald's; zero acquisition power from program
- App-only — No card, no web redemption; limits accessibility
- 6-month activity — Must transact to keep points alive (soft expiration)
- 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.
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
- Evolving Starbucks Rewards — Similar QSR-style evolution
- Evolving MyPanera — Fast-casual loyalty
Ready to evolve your loyalty program?
See how Loyalteez adds network reach to your existing program, making rewards portable across the ecosystem.