Fast-food giant McDonald’s has detailed plans to invest more than $100 million for recovery efforts after last month’s E. coli outbreak was linked to its Quarter Pounder sandwiches. The outbreak, tracked to slivered onions used in the burgers, led to one death and dozens of illnesses across several U.S. states. The fast-food chain’s recovery plan includes financial support for franchisees and specific marketing campaigns that target restoring customer confidence and sales.
Of the $100 million it is investing, $65 million would help franchisee owner-managers in the worst-hit states regain business losses. $35 million would be used to drive traffic into its restaurants through advertising and marketing promotions. McDonald’s also said it will devise localized recovery plans in areas that were worst hit by the spread of the virus. The specifics will emerge over the following weeks.
In a memo to franchisees and employees, the company renewed the commitment to customer safety and brand integrity. “Fast moving, but not running from the crisis. The company emphasizes customer wellness as the company moves into recovery phase,” Chief Impact Officer Michael Gonda of McDonald’s and Chief Marketing Officer Tariq Hassan said.
The outbreak has led to an immediate decline in daily sales and customer traffic; it came at a time when the U.S. Centers for Disease Control and Prevention connected the outbreak of E. coli with the Quarter Pounder sandwiches offered by McDonald’s. Although short-term, this would lead to a declination in financial performance according to CFO Ian Borden and other leadership members.
To aid in the recovery of the chain, McDonald’s put back on menus nationwide the Quarter Pounder with slivered onions. The CDC said that as of Wednesday, there were 104 cases, 37 hospitalizations, and one death across 14 states from the outbreak. However, both the CDC and the US Food and Drug Administration say there is no ongoing food safety concern tied to McDonald’s restaurants.