Silke Mayr McDonald’s is investing $100 million to recover from an E. coli outbreak that sickened more than 100 people and led to a decline in sales. An internal memo obtained by CNN reveals that $35 million will go toward marketing efforts, including a chicken nugget promotion, while $65 million will be used to support franchisees in states most affected by the outbreak.
In October, McDonald’s saw a sharp drop in customer visits and sales after the Centers for Disease Control and Prevention (CDC) and the Food and Drug Administration (FDA) identified slivered onions on Quarter Pounders as the likely source of the contamination.
The outbreak impacted over 100 people across 14 states, and several lawsuits have been filed against McDonald’s. The company’s stock also dropped by approximately 7% in the last month.
“The trust and loyalty we’ve built over nearly 70 years have been tested in recent weeks, and we remain committed to doing the right thing,” 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 since confirmed that recent tests show no traces of E. coli in its food, and Quarter Pounders with slivered onions are now back on the menu nationwide.
In a follow-up earnings call, CEO Chris Kempczinski emphasized that the company is “ready to take further steps if necessary to bring the full resources of McDonald’s” to regain customer trust.
As part of its recovery efforts, McDonald’s is rolling out a new marketing campaign featuring TV ads for a 10-piece McNuggets deal at $1, available weekly through the McDonald’s app until early next month. The chain is also continuing its popular $5 meal deal.