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McDonald's praised for handling of Shrek glasses recall
June 10, 2010
Analysts say McDonald's has done a good job of handling the recall of its Shrek glasses, Time Magazine reports.
From the story:
"The takeaway from all this is that they were very proactive," says Jack Russo, an equity research analyst who covers McDonald's for Edward Jones, an investment banking and advisory firm based in St. Louis, Mo. "You have to be prepared for the worst." Russo was struck by the difference between the competent reaction of one multibillion-dollar corporation, McDonald's, and that of another quite prominent one that's been in the news lately, BP (he noted that the severity of their problems was quite different). "It was pretty brilliant," says Sophie Ann Terrisse, CEO of STC Associates, a brand-management firm, of the McDonald's response. "They came clean right away, and not only did they do what customers expected, they did more."
McDonald's is offering consumers a $3 refund for each Shrek glass returned. The glasses sold for $24.9 individually and $1.99 with a food purchase. Consumers can return the glasses to any of its stores without a receipt. The company has said it sold more than 7 million of the glasses.
Despite the goodwill gesture, some parents may confuse the Shrek glasses recall with Shrek toys in the McDonald's Happy Meal and stop buying the meals, Time reports. But Russo doubts there will be any long-lasting effect on kids' meal sales, since children themselves will continue to demand the toys and their Happy Meals.
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