Dive Brief:

• McDonald's has created a collection of branded casual clothes that will be part of a giveaway on July 26 for customers ordering McDelivery in select cities, according to a website set up by the company.
• The McDelivery Collection includes jogging pants, hoodies, a burger pillow, flip-flops, a onesie and more, as reported by TechCrunch.
• The fast food giant's McDelivery service is in partnership with UberEATS. The business has grown quickly since launching earlier this year, expanding to well over 1,000 restaurant locations.

Dive Insight:

McDonald’s is just the latest in a growing spate of companies that have turned to hip-looking branded merchandise for marketing purposes. While the McDelivery Collection is currently limited to the one-day giveaway promoting McDonald's partnership with UberEATS, it wouldn't be a surprise if similar efforts aren't far behind.

For McDonald's, McDelivery has proven to be a successful new business avenue and way to connect with young consumers like millennials, who are eating at fast food restaurants less. A company memo reported on last year found only 20% of millennials had ever tried McDonald's flagship menu item, the Big Mac, but the age group has shown favor for services that are convenient and mobile-oriented, making delivery a big win. 

To date, most brands offering branded merchandise have taken the e-commerce route. Just last week, KFC rolled out an online shop featuring a wide range of items from Colonel Sanders t-shirts to a $20,000, 400-year-old meteorite shaped like a chicken sandwich. The priciness of that item matched a piece of jewelry from Cheetos' holiday catalog from last year. 

The common thread is that brands have realized that many of their fans are willing to pay hefty price tags to snag exclusive gear that essentially doubles as free promotions.