- McDonald’s Quarter Pounders have been linked to an E. coli outbreak in several states, the CDC said.
- McDonald’s said it will temporarily remove the burgers from its menus in the affected areas.
- Other fast food chains have recovered from similar food safety crises before.
A deadly E. Coli outbreak has been linked to McDonald’s Quarter Pounder.
So far, one person has died and 10 others have been hospitalized in connection with the outbreak, with at least 49 people sickened in 10 states, the Centers for Disease Control and Prevention said Tuesday. McDonald’s said the outbreak may be linked to chopped onions used in the Quarter Pounder.
The fast-food chain said it was temporarily removing the burger from the menu in some states.
“Negative food safety news is never welcome by restaurant operators, especially those working to improve brand image after being challenged by consumer affordability in recent years,” said Jon Tower, an analyst at Citigroup, in a note to clients, according to Bloomberg.
Tower said McDonald’s outlook depends on the company’s response, which should include taking responsibility, controlling the outbreak and correcting food safety excesses, the source reported.
Examining how other fast-food giants have recovered from recent health-related crises may also provide insight into how McDonald’s will try to recover from the incident.
How Chipotle and Wendy’s bounced back from health-related woes
Some fast food brands have bounced back from food safety incidents before.
One of them is Chipotle, the Mexican fast food chain in which McDonald’s had a 90% stake until 2006.
In 2015 and 2016, hundreds of customers reported getting sick after eating at Chipotle restaurants. Chipotle’s stock price plummeted, and the company eventually agreed to pay a $25 million fine to settle criminal charges related to the explosions that affected 1,100 people from 2015 to 2018.
But less than five years later, the company and its stock price had recovered. So what did Chipotle do?
In 2016, the company announced a series of new food safety protocols — such as rinsing multiple products and putting stickers on food storage containers to show when they had been sanitized — and hired James Marsden, a professor from Kansas State University, to serve as executive director of food safety.
In 2017, Chipotle announced that its founder, Steve Ells, would step down as CEO in favor of someone with “demonstrated change expertise.” In 2018, Brian Niccol, now CEO of Starbucks, took over as CEO of Chipotle after a successful stint at the helm of Taco Bell.
Niccol told the New York Times in 2019 that Chipotle had become “an industry leader” in food safety, adding, “We’re doing some really progressive things on the food safety front, and we’re going to have to, because we’re going to stay committed to using real ingredients.”
Chipotle’s recovery may also have depended on business expansion into areas unrelated to food safety. “They are extraordinary in how well the brand has capitalized on digital ordering,” Sara Senatore, a Bernstein analyst who followed Chipotle, told the Times in 2019.
Wendy’s faced a similar situation. In July and August 2022, Wendy’s restaurants were linked to an E. coli outbreak in six states, according to the CDC. At least 109 people fell ill, with 52 hospitalized. No deaths were reported.
An investigation into the incident was unable to determine the specific food source responsible for the outbreak, but 46 people reported eating romaine lettuce served on burgers and sandwiches before becoming ill, according to the CDC. As a precaution, the fast food chain removed romaine lettuce from menu items in the affected states.
Despite the E. coli outbreak, the company’s US sales rose 7.7% in the third quarter of 2022, compared to a year ago.
In its latest corporate responsibility report, published in May, Wendy’s said it was committed to continually improving its food safety standards and operational procedures and had conducted more than 12,000 food safety assessments at its restaurants. around the world.
What should McDonald’s do?
The McDonald’s case differs from similar incidents at other fast-food chains, largely because of the Quarter Pounder’s iconic status, Alexandra Leung, founder of Monogic, a food and beverage marketing and PR agency in Singapore, told Business Hong Kong. The insider.
“As a classic menu item, any food safety issue involving the Quarter Pounder could significantly affect consumer trust and brand reputation, making it a more sensitive issue for McDonald’s,” she said.
The Quarter Pounder is important to McDonald’s menu — and to its brand more broadly. “Classic” menus like the Quarter Pounder have made up a large portion of McDonald’s food sales in key markets in recent years. The company’s share price fell nearly 10% in after-hours trading on Tuesday following the news.
But Leung said the company’s well-established food safety management system and history of rigorous supplier audits could allow for a more effective response.
The fast-food chain will also have to conduct full audits of its suppliers’ practices, she said.
In addition to continuing the product recall of the affected items, McDonald’s must also clearly communicate with their customers throughout the process, Leung said.
“Clear messaging about the steps being taken to ensure food safety is vital. This proactive approach will help reassure customers that their health is a top priority,” said Leung. “Transparency is essential in rebuilding trust with customers, as it shows accountability and commitment to their security.”