Following a recent E. coli outbreak linked to its Colorado restaurants, McDonald’s has seen a significant decline in customer visits.
National traffic to McDonald’s dropped by 6.4% on the outbreak’s announcement day, reaching a 10% drop by the end of the week. Colorado, the outbreak’s epicenter, saw even steeper declines, with a 33% reduction in foot traffic by Friday, according to data from Placer.ai, according to CNN.
In response, McDonald’s plans to leverage its $5 value meals and introduce new menu items, such as the Chicken Big Mac, to regain customer trust.
CEO Chris Kempczinski also indicated that the company is prepared to enhance advertising around food safety if necessary. The company’s swift response to the outbreak — by isolating the source and working with health officials — has positioned it well for recovery, RJ Hottovy of Placer.ai told CNN.
During an earnings call, McDonald’s finance chief Ian Borden acknowledged the outbreak’s impact on sales, although the company anticipates a gradual return to regular traffic levels.
As part of its mitigation plan, McDonald’s has indefinitely removed onions from the Colorado Springs supplier implicated in the outbreak from its supply chain. The Colorado Department of Agriculture has since cleared McDonald’s Quarter Pounder patties, allowing the item to return to menus nationwide.
Despite the setback, McDonald’s has managed modest sales growth through promotions and nostalgic collaborations, including limited-time collector’s items.
However, Kempczinski admitted that the brand has “fallen short of expectations” this year, with broader industry trends showing consumers opting to eat at home more frequently due to rising fast-food costs.
Written with assistance from artificial intelligence.