McDonald’s is investing $100 million in marketing and financial support for franchisees

McDonald’s invests in marketing and financial assistance for franchisees. | Photo by Jonathan Maze.

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

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

But the company is also working on “local recovery plans for highly affected markets,” including targeted “liquidity support” for the hardest-hit franchisees.

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

“How we show up to our customers now 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. “All of our long-standing standards and protocols – from the way hands are washed to the way food is cooked to the way restaurants are cleaned – matter and play a role in delivering on our promise to customers.”

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

These onions would be past their expiration date at this point and will likely no longer be available for purchase at this time. The CDC says the risk to the public is low.

The U.S. Food and Drug Administration said that “there appears to be no ongoing food safety concerns associated with the outbreak at McDonald’s restaurants.”

McDonald’s this week completed the return of Quarter Pounder burgers, with sliced ​​onions, to all restaurants nationwide. While the company acknowledged that more cases could be reported, it also noted that the outbreak is under control.

The outbreak came at a difficult time for McDonald’s. Sales and foot traffic to the chain’s restaurants returned last month, thanks to 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 is planning several steps to speed up the system’s recovery.

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

The release noted that McDonald’s is planning additional investments in its national value campaign and digital media plans.

The company also has a history of providing financial support to franchisees hit hard by extraordinary problems. McDonald’s took this step during the pandemic. They did that again last year Many franchisees in Europe were hit hard by inflation.

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

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Restaurant Business Editor-in-Chief Jonathan Maze is a longtime industry journalist who writes about restaurant financing, mergers and acquisitions and the economy, with a particular focus on quick service restaurants.

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