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McDonald’s is spending 0 million to lure back customers after E. coli outbreak
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McDonald’s is spending $100 million to lure back customers after E. coli outbreak


New York
CNN

McDonald’s is spending $100 million on marketing and to help franchises hardest hit by a recent E. coli outbreak that has sickened more than 100 people and hurt sales.

In a memo sent to employees and obtained by CNN, McDonald’s is spending $35 million on marketing, including a value deal focused on its chicken nuggets, plus $65 million for franchisees who have lost business in the states where the outbreak occurred.

Visits and sales took a nosedive in October after the Centers for Disease Control and Prevention and the Food and Drug Administration said fresh chopped onions served on Quarter Pounders were the likely source of an E. coli outbreak.

More than 100 people became ill in 14 states and several lawsuits have been filed against the chain. Shares of McDonald’s (MCD) are down about 7% over the past month.

“The relevance, trust and love for the Golden Arches have been hard-earned for nearly 70 years through our unwavering commitment to doing the right thing. The past three weeks have only further illustrated that,” said the memo, which was signed by Michael Gonda, the chain’s chief impact officer for North America, and Tariq Hassan, chief marketing and customer experience officer.

McDonald’s has said that recent testing showed no E. coli in the food, and the memo said its Quarter Pounder burgers topped with sliced ​​onions are now back on menus across the country.

In an earnings call after the outbreak, CEO Chris Kempczinski said the chain is “ready to do more if necessary to ensure we deploy the full resources of McDonald’s” to win back customers.

The new marketing campaign includes television ads touting a 10-piece $1 McNuggets deal, redeemable weekly in the app until early next month. The chain is also continuing its successful $5 meal deal.