In the wake of last month’s E. coli outbreak tied to McDonald’s slivered onions, the fast-food giant announced plans to invest over $100 million to enhance restaurant sales and aid affected franchisees in their recovery. Of this amount, $65 million will be allocated to support owners who suffered losses, focusing on those in the most severely impacted states. Another $35 million will be dedicated to traffic-driving initiatives, such as marketing campaigns, as outlined in a memo seen by CNBC.
McDonald’s will also be implementing “local recovery plans for highly impacted markets,” with further specifics to be provided in the upcoming weeks, according to the memo. The company emphasized its commitment to customer safety and well-being during the crisis and expressed dedication to doing the right thing as they transition into the recovery phase.
Reports from The Wall Street Journal and Bloomberg had previously highlighted the planned recovery investments. Despite a temporary decline in daily sales and traffic following the CDC’s announcement linking the E. coli outbreak to McDonald’s Quarter Pounders, executives reassured investors during the recent earnings call that the situation is not expected to significantly impact the business.
Following the completion of the return of Quarter Pounder burgers with slivered onions to all restaurant menus nationwide, the CDC updated the outbreak figures to include a total of 104 cases, 37 hospitalizations, and one death across 14 states. Simultaneously, the FDA stated that there is no ongoing food safety concern related to the outbreak at McDonald’s restaurants.
