McDonald’s is investing $100 million to win back customers after an E. coli outbreak that sickened over 100 people and impacted sales. According to an internal memo obtained by CNN, the company is allocating $35 million for marketing, including a special offer on its chicken nuggets, and $65 million to support franchisees who were hardest hit by the outbreak in affected states.
In October, McDonald’s saw a significant drop in visits and sales after the Centers for Disease Control and Prevention (CDC) and the Food and Drug Administration (FDA) traced the source of the outbreak to fresh, slivered onions served on its Quarter Pounder burgers.
The outbreak affected over 100 people across 14 states, and multiple lawsuits have been filed against the company. McDonald’s stock has also dropped by about 7% in the past month.
“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,” the memo stated, signed by Michael Gonda, Chief Impact Officer for North America, and Tariq Hassan, Chief Marketing and Customer Experience Officer.
McDonald’s has since announced that recent tests show no traces of E. coli in its food, and Quarter Pounders with slivered onions are now available again nationwide.
In an earnings call after the outbreak, CEO Chris Kempczinski emphasized that the company is “ready to do more if we need to, to ensure we bring all the resources of McDonald’s” to restore customer confidence.
The new marketing campaign includes TV ads promoting a 10-piece McNuggets deal for $1, which can be redeemed weekly through the McDonald’s app until early next month. The company is also continuing its popular $5 meal deal.
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Silke Mayr is a seasoned news reporter at New York Mirror, specializing in general news with a keen focus on international events. Her insightful reporting and commitment to accuracy keep readers informed on global affairs and breaking stories.
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