McDonald's is investing $100M in marketing and franchisee financial assistance

McDonald’s is making an investment in marketing and financial help for franchisees. | Photo by Jonathan Maze.

McDonald’s is investing more than $100 million into marketing and targeted financial assistance for franchisees in the wake of an E. coli outbreak in 14 states out west. 

The investment includes $35 million for marketing, according to a system message seen by Restaurant Business. The Chicago-based fast-food giant is launching a national advertising campaign this week, which highlights an offer of a 10-piece Chicken McNuggets for $1 through the McDonald’s mobile app. 

But the company is also working on “local recovery plans for highly impacted markets” that will include targeted “liquidity support” for the most highly affected franchisees. 

Between the marketing investment and the financial support for franchisees, McDonald’s total investment is more than $100 million, according to the company.

“How we show up right now for our customers is everything,” Michael Gonda, McDonald’s chief impact officer for North America, and Tariq Hassan, chief marketing and customer experience officer for McDonald’s USA, said in the system message. “Each of our longstanding standards and protocols—from how hands are washed to how food is cooked to how restaurants are cleaned—matters and plays a role in delivering on our promise to customers.”

The message comes just a couple of days after the U.S. Centers for Disease Control and Prevention said that 104 people in 14 states have been sickened in the outbreak, including one death. The outbreak has been traced to onions from a Taylor Farms facility in Colorado. 

Those onions would be pass their expiration date at this point and are unlikely to be available for sale at this point. The CDC says the risk to the public is low.

The U.S. Food and Drug Administration said that “there does not appear to be a continued food safety concern related to the outbreak at McDonald’s restaurants.”

McDonald’s this week completed the return of Quarter Pounder burgers, with slivered onions, to all restaurants nationwide. While the company acknowledged that more cases could be reported, it also noted that the outbreak has been contained. 

The outbreak came at a tough time for McDonald’s. Sales and traffic to the chain’s restaurants had returned last month, driven by the company’s Chicken Big Mac promotion, after a difficult year marked by consumer frustration over menu prices. 

The company told operators last week that it plans several moves to help speed the system’s recovery.

The national campaign highlights many of the chain’s menu items, featuring video of people eating Big Macs or McChickens.  

The message noted that McDonald’s plans additional investment in its national value campaign and its digital media plans. 

The company has also had a history of providing financial assistance to franchisees hit hard by extraordinary issues. McDonald’s took this step during the pandemic. They did so again last year when many franchisees in Europe were hit hard by inflation.  

In addition, McDonald’s said that it has updated its messaging to the public on the outbreak as well its internal resources for the franchisee’s operators. 

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