Brief:

• McDonald's last night celebrated its third annual "McDelivery" promotion by giving away branded loungewear to customers who ordered food from Uber Eats. Unlike past events to promote the chain's mobile ordering and delivery, this year's "McDelivery Night In" kicked off at 5 p.m. at locations across the U.S. to urge people to enjoy a cozy night at home, per an announcement shared with Mobile Marketer.
• The promotion featured a "McDelivery Night In" line of apparel and accessories including slippers, fuzzy socks, hair scrunchies, T-shirts, sweatshirts and fleece shorts. The burger chain offered the limited-time merchandise on McDelivery orders of at least $10.
• More than 1 million people each day order food for delivery from McDonald's worldwide, and the company estimates its McDelivery service will surpass $4 billion in global revenue this year. More than half of the chain's locations, or 21,000 restaurants worldwide, offer food delivery service.

Insight:

The "McDonald's Night In" campaign extends the company's effort to appeal to young consumers who are less likely to dine out at fast food restaurants. McDonald's is on track to see more than $20 billion in revenue this year, suggesting that its delivery business is growing as a key sales driver for its restaurants that offer the service. Mobile ordering and McDelivery are proving to be reliable ways to connect with a new generation of consumers after the burger chain reportedly determined several years ago that only 20% of millennials had ever tried McDonald's flagship menu item, the Big Mac.

Staying in just got sweeter w/ #McDelivery Night In this Thurs, 9/19! ????Order your favs w/ @UberEats to get free swag starting @ 5pm local time, while supplies last with $10 min purchase. pic.twitter.com/Zmq9GzccE3

— McDonald's (@McDonalds) September 16, 2019

McDonald's has made home delivery a key priority in response to changing consumer preferences. More than half (56%) of people ages 21 to 38 placed a delivery or takeout order using a restaurant's mobile app or website in the past year, per a survey by the National Restaurant Association. The industry group found that more than 60% of millennial diners want restaurants to use technology that makes ordering and payment easier, and to make takeout and delivery more convenient for their on-the-go lifestyles. Delivery revenue was forecast to grow more than three times the rate of on-premise sales by 2023, per a March 2018 report by investment bank Cowen.

Branded swag has become a vital part of restaurant chains' promotional activities of late. McDonald's even poked fun at the trend with an August campaign in the U.K. for a parody streetwear line. The company in 2015 created the Big Mac Lifestyle Collection that included a humorous "McWalk" fashion show in Stockholm. Two years ago, the chain promoted its McDelivery service by offering a collection of branded casual clothes including jogging pants and hoodies. Other chains such as KFC and Taco Bell also have created branded clothing lines aimed at appealing to millennials and Gen Z.