What Can McDonald's CEO Do to Win Back Trust?
McDonaldâs CEO Chris Kempczinski hopes to win back American customers with its $5 meal deal after temporarily stopping sales of Quarter Pounder burgers due to E. coli.
But will Kempczinskiâs message of reassurance be enough to win back American customers?
An average of one million Quarter Pounders are sold every fortnight.
The fast food chainâs global sales fell 1.5% in the three months to the end of September, the biggest decline in four years.
US comparable sales rose 0.3 per cent in the third quarter, helped by promotions. International sales fell 2.1%, driven by weakness in the UK and France.
Spending by consumers has been sluggish or falling across the US, Europe and China in recent months, with people weary from years of inflation looking for cheaper alternatives or just cooking at home.
Weaker consumer spending in China, and the continued impact of the war in the Middle East, led to a 3.5% drop in sales in its licensing business, in which restaurants are run by local partners.
McDonaldâs recently had to take back its Israeli franchise, due to protests, after its owner donated free burgers to Israeli soldiers in the wake of the 3 October Hamas attack.
- McDonald's sells approximately 2.36 billion burgers per year
- The fast-food chain sell approximately 6.48 million burgers per day
- In 2018, McDonald's had approximately 13,900 locations in the US alone
Food poisoning
Adding to the woes of the Golden Arches, an E. coli outbreak linked to its Quarter Pounder burgers has resulted in at least one death in the US and dozens of illnesses.
The McDonald’s outbreak spread across a dozen states, with most reported in Colorado and Nebraska.
The fast-food chain was forced to temporarily suspend sales of its Quarter Pounders, one of McDonald’s most popular menu items.
The E. coli outbreak has been traced to one of its regional suppliers who provided silver-skin onions used in Quarter Pounders. Its onions were then shipped out through three distribution centres.
McDonald’s CEO Chris Kempczinski apologised for the recent E. coli outbreak, saying the situation appeared to be contained and that he was “confident in the safety of eating at McDonald’s”.
He said he was “very sorry” if someone became ill at a McDonald’s restaurant after eating an onion used in its burgers.
“I am relieved that I think we are now past this and on the road to getting back to serving our customers as we are used to doing,” he told analysts on Tuesday.
Laser focus
Kempczinski said the company was “laser-focused” on offering value and affordability as customers “continue to be mindful about their spending”.
It has extended its $5 meal deal in the US, launched in June, until December in most locations.
Kempczinski, 56, said: “I think certainly we’re seeing success with the $5 meal deal. We’re going to have food innovation as well in Q4. We’re going to continue to be driving digital and I think we stand ready to do more if we need to.”
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