McDonald’s is dedicating $100 million to recover from an E. coli outbreak that sickened over 100 people and negatively impacted sales. According to an internal memo obtained by CNN, the company is allocating $35 million for marketing efforts, including a promotional deal on its chicken nuggets, and $65 million to assist franchisees in states hit hardest by the outbreak.
In October, customer visits and sales took a significant hit after the Centers for Disease Control and Prevention (CDC) and the Food and Drug Administration (FDA) linked fresh slivered onions on Quarter Pounders to the E. coli outbreak.
The outbreak affected more than 100 people across 14 states, and multiple lawsuits have since been filed against McDonald’s. The company’s stock also dropped by roughly 7% over the past month.
“The relevance, trust, and love for the Golden Arches have been earned over nearly 70 years through our commitment to doing the right thing. The past three weeks have only reinforced that,” the memo, signed by Michael Gonda, Chief Impact Officer for North America, and Tariq Hassan, Chief Marketing and Customer Experience Officer, stated.
McDonald’s has confirmed that recent tests found no traces of E. coli in its food, and Quarter Pounders with slivered onions are now available again on menus nationwide.
In an earnings call following the outbreak, CEO Chris Kempczinski assured investors that the company is “ready to do more if needed to ensure we are bringing all the resources of McDonald’s” to win back customers.
As part of its recovery strategy, McDonald’s is launching a new marketing campaign that includes TV ads promoting a 10-piece McNuggets deal for $1, available weekly through the McDonald’s app until early next month. The company is also continuing its popular $5 meal deal.
