 How did Travis Scott, a rapper, save McDonald's from going bankrupt? Today's video is about this collaboration between Travis Scott and McDonald's and the three things that you as a restaurant owner can learn from this collaboration so then that way you can stay relevant and get more customers. Hello friends, my name is Wilson, your friend in helping you build a profitable small business and a thriving food business. Now to start off this video, I do wanna give you guys some sort of background information of why McDonald's is facing a big problem. Back in July of 2020, they have recorded the first ever lowest profits in 13 years. The chain's net income fell by more than 68% to $483 million according to Financial Times and they also closed more than 200 US locations for good. Now they're not the only fast food chain that's having problems. One of the largest franchisee of Pizza Hut restaurant in the United States also filed for bankruptcy. Now seeing the fact that McDonald's is becoming more and more irrelevant, they have actually reached out to one of the more popular relevant rapper stars Travis Scott to actually do a collaboration in September of 2020 featuring the rapper's favorite meal, a quarter pounder with bacon, and Sprite for only $6. This campaign is so successful that they went out and created even more merchandise and more items to sell in addition to their meals. We're talking about three foot long chicken wing nuggets themed pillows, a $290 denim shorts and the nugget pillow is now reselling for more than $450. This campaign was so successful that even the Wall Street analysts was actually redoing their sales forecast for McDonald's going from 1.4% for the third quarter to 3%. And a big part of that is because of the Travis Scott meal and collaboration making a lot more people wanting to buy from them, making McDonald's much more relevant. Now this is a very special collaboration as well because in more than 30 years McDonald's haven't done a collaboration with a celebrity before. Last time they did this was with Michael Jordan. Now, what can we learn from this collaboration? There are the three things that we can learn from it and you should apply it to your restaurant. First thing that we can learn from this collaboration is that this brought in new customers and also revived an old customer. Now, what I mean by reviving old customers? For example, myself, I used to always dine at McDonald's when I was younger, when I was in high school because I just didn't have that much money. And ever since then, as I grew up, I kind of had that phased out of my life because it was less relevant and for me, I want to eat more healthier food. So I haven't eaten McDonald's for years now. Now, since seeing this collaboration, I'm like, wow, that is a very interesting collaboration and thus it piqued my interest and I went and bought a quarter pounder. And since then, I've been dining at McDonald's for three or four more times because it just reminded me about my experience with McDonald's, thus reviving an old customer and this is happening across the board. Now, the collaboration also brought in a lot of new customers. Now, what I mean by that? Travis Scott is a cultural icon within the younger demographic and for him, with all his social media platform and his reach, he was able to reach more than three billion streams at one point. That's a lot of audience that we're talking about and that's the reason why a lot of these people seeing their cultural icon is collaborating with McDonald's. These people, now they're giving McDonald's a try. They're trying their food out and in turn, even if they don't like the quarter pounders, they might enjoy the McNuggets, they might enjoy the Big Mac, the Cheeseburger and really introducing all the different goodness that McDonald's is offering to Travis Scott's audience. Now, how can you apply it with your restaurant chain? Well, you can do the same thing. Collaborate with people who has an audience that has the same values as your restaurant chain. That's when you see the effect of cross-pollination and collaboration. Now, when we're talking about values, it is super important for us to build a business, whether it's a small business or a restaurant with the right framework, the ACE formula. Align with your own values, with your brand's values, with your customer's values. That is super important to have that alignment. And then second, you connect with your audience after you find that alignment. That's when you can build a solid, loyal fan base. And then collaborations, marketing, PR, that's when you explode in revenue. A lot of people get this wrong. They get the whole sequence wrong. They run ads wanting to bring in more customers when their business fundamentals is not right. And that's the reason why we created this free training. In the link below, go and check out this one hour long of free training when we talk about how you can build your business using the ACE formula. Definitely go check it out. That's gonna be able to help you build a profitable restaurant and actually utilize campaigns like this one into your own business. The second thing that we can learn from this campaign is that campaigns like this, novel and exciting, would generate a surge of user-generated content. Now what are user-generated content? UGC stands for basically what people do with your brand, how people interact with your brand. Now you might be thinking, why do I wanna create UGC? Why do I wanna have user-generated content? It is because it's the best form of credibility. Once again, I always say this. What you have to say about yourself has really little weight compared to what other people are saying about your brand. As an example in this case, there are people that go through the drive-thru of McDonald's playing Travis Scott's song while they order their favorite meal and they put that on TikTok. Guess what? That video alone has racked up more than 4 million views. What can I get for you? You know what I'm here for, man. Let's keep it short and sweet. I think you know why we're here. Travis Scott Bergen. So just imagine the amount of media, the amount of advertising costs that you're able to save when your fans actually go out and create the content to promote your brand and the brands that you work with. Same thing of how you can apply this to your own restaurant is when you are creating something like this, a campaign with an influencer, a campaign with another brand. Think about what kind of novel experience would incentivize your customer to create content with. Is it gonna be a contest? Is it gonna be something fun? Is it gonna be something novel and creative? Keep your eyes open and make sure you are on the social media platform where your customers are hanging out. Then we would be able to see how they consume it and we can now come up with collaborations, contest details, things that are creative for your customers to create user-generated content for your brand. If you guys enjoyed this video and find value in this video, make sure you guys smash the like button and let me know this is the type of content that you enjoy. Now back to regular programming. Third thing that we can learn from this collaboration is that FOMO is real. What is FOMO? FOMO stands for fear of missing out. This is a very common tactic used by a lot of different people. Now, in this specific instant, Travis Scott and McDonald's collaboration, they have executed it to AT. Starting this campaign in September, ending on October 4th of 2020, allows people to, everyone, a surge of traffic, all immediately going to McDonald's to order that meal, to listen to Travis Scott's music, and that really pushed everyone to go and consume that in a very short period of time. And when that happens, people talk about it. Hey, you know what? Have you tried their meal yet? Oh, you know what? You have to go try it out because it's gonna be gone soon. And that really allows people to talk about it, creates a lot of hype, urgency as well, for people to take action. That's the type of feedback. That's the type of messiness we want to have in the marketplace if you are a brand. Now, a lot of people don't do this well. They have this overextended period of time when they run a campaign, or worse, they don't even have a limited amount of time for their campaign. So if you're a small business, or if you're running a restaurant, definitely for any launches, any campaigns that you do, minimum two weeks, maximum three weeks for your campaigns, that's exactly the rule of thumb we follow when we were running our ice cream shop 720 Suites. Any campaigns that we run, typically speaking, two weeks long, because the first week is about getting the word out there, second week is when the people come through the doors and really pushes them to purchase and pushes them to talk about us. That's the golden timeframe. So there you go, guys. The whole takeaway of this video is that collaborations work. As we can see in the world stage of McDonald's working with Travis Scott, it was so successful that now they're partnering up with a reggaeton artist called J. Belvin to continue on the momentum. Other brands like Dunkin Donuts, they're collaborating with TikTok artists, one of the highest followers on TikTok, Charlie. Now, working with these world-class celebrities is definitely not a possible thing for you and I, small businesses. But the key here is finding restaurants and finding brands that have aligned values as you do that complements to your business. As you can see from here, Mr. with Boku, with other different businesses as well, locally, as long as you're creative, as long as your values align and as long as you're creative, that is gonna be a collaboration that you can do. Now, once again, if you wanna learn more about how to align your values, so then that way you can build a loyal fan base that will always buy from you again and again, then definitely check out our training down below in the link. It is an hour long of free training for you. Definitely check it out. If you guys enjoyed this video, make sure you smash the like button. Otherwise, I'll see you guys in the next video.