McDonald's Allocates $100 Million to Restore Customer Visits Following E. coli Incident
In the wake of an E. coli outbreak linked to the slivered onions on their Quarter Pounder burgers, McDonald's is dedicating $100 million to bring back patrons to its outlets.
According to a memo obtained by CNN, $35 million of this budget is allocated for marketing efforts, including special promotions focused on the chain's chicken nuggets.
A further $65 million is earmarked for support to franchise owners who faced the greatest impact due to the outbreak.
When Business Insider requested a comment, McDonald's did not respond immediately.
The U.S. Centers for Disease Control and Prevention reported the outbreak affected more than 100 individuals across 14 states, of which 34 required hospitalization, and there was one fatality.
The CDC identified slivered onions as the probable cause, prompting the supplier to issue a recall.
In the past month, McDonald's shares have dropped by over 7%.
Customer visits and daily sales figures evidently decreased as some patrons shunned restaurants during this health alert.
Initiatives to Rebuild Trust
Their newly launched marketing initiative is set to feature television commercials promoting a deal for 10 McNuggets priced at $1, redeemable via the company's application.
A memo revealed by CNN quoted Michael Gonda, the chief impact officer for North America, and Tariq Hassan, the chief marketing and customer experience officer, stating that the deep-rooted trust, relevance, and affection for the Golden Arches have been earned through nearly seven decades of steadfast commitment to ethical practices. The challenging events of the last three weeks have further underscored these values.




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