E. Coli Outbreak Costs McDonald’s $100 Million, Company Trying to Win Customers Back
Explanation:
(Reuters) − After being hit with a $100 million bill for its E. coli outbreak, McDonald’s is attempting to win back customers.
With E. coli linked to onions on its popular Quarter Pounder burgers, McDonald’s is risking customer confidence by promising to invest $100 million to help its franchise recover.
As part of the investment, the fast-food giant said it will offer $65 million in direct support to the franchise locations hardest hit by COVID.
What Happened?
According to the U.S. Centers for Disease Control and Prevention (CDC), the likely source of the outbreak included slivered onions on quarter pounders. Onions linked to multiple cases of illness were supplied by California-based supplier Taylor Farms, which has issued a recall of potentially contaminated onions.
Colorado (30), Montana (19), Nebraska (13), and New Mexico (10) were affected. Between Sept. 12 and Oct. 21, at least 104 people got sick, and 34 were hospitalized, said federal health officials.
Safety First: FDA’s Response
The Food and Drug Administration (FDA) said the public no longer needs to worry about the food safety of McDonald’s locations in relation to the outbreak. The incident hugely hurt the company’s sales and damaged customer trust.
McDonald’s Steps Up
In response to the outbreak, the company quickly identified another onion supplier for the 900 affected restaurants and temporarily removed Quarter Pounders from menus in several states. Since then, the company has resumed serving Quarter Pounders with slivered onions across the country with the best possible food safety.
The Road to Recovery
With this $100 million initiative, McDonald’s is making good on its promise to provide its franchisees the support they need and regain customer loyalty. The outbreak may have hurt sales, but the company is looking to reassure diners that safety is the No. 1 priority by being quick to act and committing major investment.
To address the issue head-on and invest in recovery, McDonald’s is turning a challenging moment into an opportunity to reaffirm its commitment to quality and customer satisfaction.
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