- McDonald’s is investing $100 million into recovering from an E. coli outbreak, CNN reported.
- McDonald’s said the outbreak led to a drop in restaurant visits and sales.
- Marketing and franchise support are key strategies in its efforts to regain customer trust.
McDonald’s is reportedly spending $100 million to lure customers back to stores following an E. coli outbreak linked to slivered onions served on Quarter Pounder hamburgers.
$35 million of the investment is going toward marketing, including a value deal centring on the chain’s chicken nuggets, according to a memo sent to employees seen by CNN.
An additional $65 million will be spent on the franchisees that were worst affected by the outbreak, it said.
McDonald’s did not immediately respond to a request for comment from Business Insider.
More than 100 people across 14 states were infected by the outbreak; 34 were hospitalized and one died, according to the US Centers for Disease Control and Prevention.
“Slivered onions are the likely source of illness in this outbreak,” the CDC said. The supplier of the topping issued a recall.
McDonald’s stock is down just over 7% in the past month.
McDonald’s said in its third-quarter earnings that store visits and daily sales also took a hit as some customers stayed away from its restaurants during the health scare.
Its new marketing campaign will reportedly include TV ads that showcase a 10 McNuggets for $1 deal that can be redeemed through the chain’s app.
“The relevance, trust, and love for the Golden Arches has been hard-earned over nearly 70 years by our unwavering commitment to do the right thing. The past three weeks have only further exemplified that,” read the memo seen by CNN that was signed by Michael Gonda, chief impact officer for North America, and Tariq Hassan, chief marketing and customer experience officer.
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