McDonald’s is investing $100 million to recover from a recent E. coli outbreak that sickened over 100 individuals and impacted sales. The company is allocating $35 million for marketing, including promotions focused on its popular chicken nuggets, and $65 million to assist franchisees affected by the outbreak.
Following reports from the CDC and FDA linking the outbreak to contaminated onions on the Quarter Pounder, McDonald’s faced a sharp decline in customer visits and sales in October. Multiple lawsuits have been filed, and McDonald’s shares fell by 7% in the past month.
In a memo to employees, Michael Gonda and Tariq Hassan, executives at McDonald’s, reassured staff that the company’s commitment to quality had earned the trust of its customers for nearly 70 years. They also noted that recent tests confirmed no traces of E. coli in McDonald’s food, and Quarter Pounders with onions have returned to menus nationwide.
To win back customers, the company has launched a new marketing campaign, featuring a $1 10-piece McNuggets deal available weekly through the app and continuing the $5 meal deal promotion. CEO Chris Kempczinski emphasized that McDonald’s is ready to take further steps to restore its reputation and regain customer loyalty.
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