McDonald's is shelling out $100 million to restore customer trust after the unpleasant incident with E. coli. Of this, $35 million will go to increased marketing and advertising to restore the brand's image, and $65 million will go to supporting franchisees by deferring rent payments.
In my opinion, this is a smart move. Restoring a reputation is a long process, but McDonald's clearly understands that it needs to act quickly and comprehensively. Investments in marketing will help attract new customers and restore the loyalty of old ones, and financial support for partners will show that the company cares about its community.
But this may not be enough if measures are not taken to prevent similar incidents in the future. Reputation is built over years, and destroyed in minutes - McDonald's will still need to prove that conclusions have been made.
Do you think they will succeed?