McDonald’s Invests $100 Million to Boost Sales and Recovery After E. Coli Outbreak
In the wake of last month’s E. coli outbreak tied to McDonald’s slivered onions, the fast-food giant said it will invest more than $100 million to boost restaurant sales and speed up the recovery at affected franchisees.
Investment Breakdown
- $65 million will be invested into supporting owners who have lost business, targeting those in the hardest-hit states.
- Approximately $35 million will be invested in traffic-driving programs, including marketing efforts.
Support for Franchisees
McDonald’s will drive “local recovery plans for highly impacted markets” with more details to come in the weeks ahead, according to a memo to owners and employees viewed by CNBC.
Return of Quarter Pounder Burgers
This week, the company completed the return of Quarter Pounder burgers, with slivered onions, to all restaurant menus nationwide after temporarily removing the menu item from some locations, according to the memo to franchisees.
Outbreak Update
The Centers for Disease Control and Prevention (CDC) issued its latest update on the outbreak, which now includes a total of 104 cases, 37 hospitalizations, and one death across 14 states.
The Food and Drug Administration (FDA) also issued a statement saying that “there does not appear to be a continued food safety concern related to this outbreak at McDonald’s restaurants.”
Company Response
“We have navigated a complex and fast-changing situation, moved at an unmatched pace, and showed the true character of our brand through unwavering dedication to the safety and well-being of our customers. As we enter the ‘Recovery’ phase, we will continue to uphold our commitment to do the right thing,” said the memo from McDonald’s Chief Impact Officer Michael Gonda and Chief Marketing and Customer Experience Officer Tariq Hassan.
Conclusion
McDonald’s has taken significant steps to address the E. coli outbreak and support its franchisees during this challenging time. The company’s investment of $100 million will help to boost sales and speed up the recovery process, and its commitment to customer safety and well-being is unwavering.
FAQs
Q: How much is McDonald’s investing to boost sales and recovery?
A: McDonald’s is investing more than $100 million to boost sales and recovery.
Q: How much of the investment will go towards supporting franchisees?
A: $65 million will be invested into supporting owners who have lost business, targeting those in the hardest-hit states.
Q: What is the current status of the E. coli outbreak?
A: The CDC has reported 104 cases, 37 hospitalizations, and one death across 14 states, and the FDA has stated that there does not appear to be a continued food safety concern related to this outbreak at McDonald’s restaurants.
Q: What is McDonald’s doing to support its franchisees?
A: McDonald’s will drive “local recovery plans for highly impacted markets” with more details to come in the weeks ahead, and will also invest in traffic-driving programs, including marketing efforts.
