MCDONALD’S sales plummeted following news of E coli infections linked to the chain’s Quarter Pounders.
Transactions fell as much as 6 per cent from the prior year in the days after the outbreak became public on Tuesday (Oct 29), dragging down total sales, according to Bloomberg Second Measure data to Oct 25. The group tracks debit and credit card transactions from US consumers.
The outbreak dealt a blow to McDonald’s, which had been working to reverse slumping traffic with offers such as a US$5 meal deal and a splashy marketing campaign behind the limited-time Chicken Big Mac. McDonald’s transactions had been growing in the weeks before the issue was disclosed, Second Measure data shows.
McDonald’s has tried to reassure customers that it’s safe to eat at its restaurants. In a message on Sunday, Joe Erlinger, the chain’s US president, apologised to customers.
“I know that our relationship is built on trust. You trust us to serve you safe food every time,” he said in a video. “On behalf of the McDonald’s system, I want you to hear from me: we are sorry.”
McDonald’s has said it suspects that raw slivered onions that garnish the Quarter Pounder are the carriers of the pathogen. The chain, which had pulled the burgers from about 20 per cent of its more than 13,000 US locations, said on Sunday it planned to bring them back this week after ruling out beef as the source of the contamination. They will be served without onions at those restaurants.
Traffic fell across the US, but states where the burgers were pulled reported even larger declines, according to an analysis of Placer.ai cellphone mobility data by Gordon Haskett. Colorado, which has recorded the largest number of cases, had a 33 per cent decline on Oct 25 from the prior year.
The outbreak has sickened 75 people across 13 states and caused one death, the Centers for Disease Control and Prevention (CDC) said on Friday. The CDC said it believes the risk to the public is “very low”, citing actions taken by McDonald’s and the onion supplier, Taylor Farms, which recalled several batches of the product. McDonald’s said it would stop buying onions from the facility that’s become the focus of the investigation. BLOOMBERG
