McDonald's Is Feeling The Heat As Customer Visits Fall Amid E. Coli Scare

A recent E. coli outbreak has seen visitor numbers fall dramatically at McDonald's across the United States. In less than a week since the E. coli outbreak linked to McDonald's Quarter Pounders in 10 states was announced, the number of cases of sickness increased from the previously reported 49 to 75, which includes one fatality. This has affected public perception of McDonald's' food safety and created a sense of distrust among customers, leading to a marked decrease in customer visits to the fast food chain both in the state of Colorado, the location most affected by the outbreak, as well as nationwide. By the end of last week, visits across the US were down by 10% and in Colorado by 33%.

Although, as of yesterday, McDonald's Quarter Pounders returned to menus, albeit without onions, there is a palpable hesitation on the part of customers and the numbers don't lie. With McDonald's sales for the previous quarter –- which ended September 30 –- decreasing by 1.5% globally, it's worth wondering how the impact of this recent E. coli outbreak will be reflected by the end of next quarter.

While it's likely that the fast food giant will regain traction after this food safety incident, overall business for McDonald's has taken some heat over the past handful of years. With the average price of menu items increasing by 40%, it's no wonder that customers are reconsidering their options when it comes to eating out on a budget. McDonald's is clearly working to pivot in the direction of reestablishing trust among its customer base by promoting the $5 value meal and looking at increasing advertising efforts to focus on food safety. 

It can be said that McDonald's did take a proactive approach by working to identify the source of the E. coli outbreak, which included potentially contaminated beef patties and onions, both of which were pulled from its supply chain. Further, McDonald's was prudent in informing health officials and the general public about this food safety issue, which demonstrates the brand's willingness to keep its customers in the know and as safe as possible. With visit numbers still decreasing, though, it's curious to see what will work to effectively gain back the trust of the general public.