McDonald’s is struggling to recover customer trust. High costs and low-quality food have already driven away diners. Now, a recent E. coli outbreak linked to slivered onions on Quarter Pounders has worsened the crisis, leading to 104 confirmed cases, 34 hospitalizations, and one death in Colorado.
The outbreak impacted 14 states, including Colorado, Kansas, and Utah. In response, McDonald’s has spent $100 million on marketing and franchisee support, with $65 million allocated to the hardest-hit locations. They’ve switched onion suppliers and resumed selling Quarter Pounders, hoping to stabilize sales.
Mass layoffs compound the turmoil. McDonald’s is restructuring to improve efficiency, with layoffs hitting thousands. U.S. offices temporarily closed as the company announced cuts. Amid these dual crises, McDonald’s faces mounting pressure to rebuild trust and reinvent its future.
Sources:
- CDC Investigation Update: https://www.cdc.gov/ecoli/outbreaks/investigation-update-e-coli-o157-2024.html
- MSN News: https://www.msn.com/en-us/money/companies/mcdonalds-pledges-100-million-to-stores-after-ecoli-outbreak/ar-AA1ucY9Q
- Yahoo News: https://news.yahoo.com/news/mcdonalds-pledges-100m-rebuild-trust-202347093.html
- AP News: https://apnews.com/article/mcdonalds-layoffs-job-cuts-741a893d185fb438c9d4ec333e37f74a
- Restaurant Business Online: https://www.restaurantbusinessonline.com/financing/mcdonalds-despite-strong-sales-prepares-layoffs
- Intellizence: https://intellizence.com/insights/layoff-downsizing/leading-companies-announcing-layoffs-and-hiring-freezes/