McDonald’s is grappling with a significant challenge as its stock dropped 5% following the Centers for Disease Control and Prevention (CDC) advisory, linking its Quarter Pounder burgers to an E. coli outbreak across 13 US states.
While health officials are still working to trace the exact cause, preliminary investigations suggest that the onions used in the burger could be the source of contamination. McDonald's responded by pulling Quarter Pounders from approximately one-fifth of its US locations to reassure customers of its commitment to food safety.
The ongoing investigation to pinpoint the contamination source may take months, though officials are focusing on slivered onions from Taylor Farms, a California-based producer that has since issued a recall on four onion products due to potential E. coli contamination.
What Has Happened So Far?
On October 24, the US Food and Drug Administration (FDA) confirmed 75 cases of illness have been reported, with 22 hospitalizations and one death being linked to the outbreak so far. Authorities believe the case numbers may increase as the investigation continues.
There is also potential for new cases in regions not yet impacted, as the incubation period for E. coli ranges from eight hours to three days and travelers from affected areas may unknowingly carry the bacteria. Given that McDonald’s onions come from a single supplier, any wide-reaching contamination could quickly spread.
The CDC is investigating both the Quarter Pounder’s beef patty and the slivered onions as possible contamination sources, with a focus on onion safety, as recent outbreaks of other pathogens, like salmonella, have also been linked to onions.
McDonald’s maintains strict cooking protocols for its burgers, which would typically eliminate bacteria like E. coli if adhered to, though some experts still recommend examining food preparation processes to identify any risks of cross-contamination.
“When you prepare the burger at McDonald’s, at which point are the slivered onions added? Do they have a bowl of slivered onions, someone puts their hands in it and then touches the tomatoes? I would look very closely at that point of preparation.” - Dr. Thomas Jaenisch, Epidemiology Professor at the Colorado School of Public Health.
How Will This Impact McDonald’s Reputation?
This situation brings uncertainties about how it may impact McDonald’s reputation among consumers and investors alike, especially if more cases occur. Finance experts believe that McDonald’s response to managing the outbreak and maintaining public confidence will play a critical role in minimizing business impact.
“We don’t know where this is going to land, as far as McDonald’s is concerned, but you have to have a little bit of confidence in their ability to contain the outbreak. It’s a very sophisticated organization with a sophisticated supply chain, and I don’t doubt their capabilities.” - Eric Gonzalez, Senior Research Analyst at KeyBanc Capital Markets.
Widespread foodborne illness outbreaks, like this one, can extend for weeks or even months. It is anticipated that it will take two to three weeks for McDonald’s and federal agencies to trace the outbreak’s source. During this time it is expected that confirmed cases may continue to climb as those affected may not have sought medical care right away.
To address customer concerns, McDonald’s has issued statements about the measures taken, including pulling affected products from the menu and appearing on major media outlets to reassure the public.
“Any kind of product safety recall requires some crisis communication and reassurance on the part of the corporation that it takes safety seriously, that it takes consumer health seriously and that it will react appropriately.” - Jo-Ellen Pozner, Associate Professor at the Santa Clara University Leavey School of Business.
Food safety experts are also suggesting that enhanced food safety procedures, such as increased testing and sanitation measures, even in areas not currently affected, could help preserve the reputation of McDonald’s restaurants.
While this outbreak presents challenges, McDonald’s significant brand strength may mitigate potential long-term damage. However, it comes at a time when McDonald’s, like others in the industry, is working to attract more price-sensitive consumers struggling with the increasing cost of living. In this highly competitive market, any decline in McDonald’s sales could be an opportunity for rivals to capture market share.
Are Other Fast Food Brands Impacted?
Although no other restaurant chain has been directly impacted by the outbreak so far, many are taking preventative action. This includes Yum Brands, the parent company of Taco Bell, Pizza Hut and KFC restaurants in the United States, which has removed fresh onions from selected locations.
“We will continue following supplier and regulatory guidance to ensure the ongoing safety and quality of our food,” said a Yum Brands spokeswoman, declining to specify how many restaurants removed the onions or their locations.
How Do You Deal With Food Recalls?
If you are a Food Protection Manager, this incident serves as a reminder to react quickly and decisively to product recalls in order to maintain food safety and protect your business’s reputation.
Here’s what you can do as a Food Protection Manager to handle recalls efficiently:
- Stay informed and vigilant: Set up alerts to stay up-to-date with recalls from regulatory agencies like the CDC and FDA. Regularly monitoring these sources will help you catch recall notices quickly, even if they don’t initially affect your direct suppliers.
- Communicate with suppliers: When a recall is issued, verify whether your suppliers are affected. Immediate communication with your suppliers will help clarify if the recall impacts any ingredients or products you’re currently using.
- Remove products from sale: Once a recalled product is identified, ensure that all inventory, including ingredients and prepared foods, is removed and quarantined to prevent its use prior to disposal.
- Document recall actions: Detailed documentation of each step taken, including communication with suppliers, inventory removal, and disposal processes is essential for compliance and could be required by health inspectors. Maintain clear records to track recalled items and the measures you implemented to prevent their use.
- Conduct risk assessments and inform staff: Evaluate potential cross-contamination risks in food preparation areas. Inform your team of the recall and emphasize enhanced food safety protocols, including intensified cleaning and sanitizing, especially when handling high-risk ingredients. Remind employees of proper handling and cooking practices to maintain safety across all stations.
- Communicate with customers: If the recall affects any of the items you serve, consider proactive communication. Signage or online notices can reassure customers that you are handling the recall responsibly and prioritizing their safety.
By handling recalls effectively you are not only protecting your customers and reducing liability, you are also demonstrating a proactive commitment to food safety that builds consumer trust. A recall is a moment of vulnerability, but with swift, structured actions, you can maintain business continuity and reinforce your team’s dedication to a safe dining experience.
Learn more about food safety and protect yourself, your customers and your business by taking part in the Userve Food Protection Manager Program.
