Image Patrol – Subway/McDonald’s: Fast Food Fights End Up in a Public Relations Mess

By Katie Paine

You can barely open a newspaper or magazine these days without reading something tying obesity to fast food. So, never one to miss out on a sizzling topic, we decided to jump
into the fray - examining how Subway handled the PR disaster that unfolded when its German franchises decided it would be a good idea to do a cross promotion with the distributor
of "Super Size Me." (If you've been living under a rock all summer, it's a film about a guy who lives on nothing but McDonald's for a month and, lo and behold, gains a lot of
weight and starts to lose his health.) The problem was that, much to the horror of some of its customers, the promotion used cartoon images depicting hamburgers crashing into New
York's World Trade Center and included a statue of an overweight Lady Liberty.

The images were quickly withdrawn, but by that time the damage had been done and the images continued a life of their own on several Web sites. There was the usual finger
pointing and blame between Subway spokespeople and the film distributors -which was all made worse by the fact that Subway representatives in the U.S. seemed to contradict their
counterparts in Germany. The German firm responsible for the promotion defended the images as, "appropriate."

For its part, McDonald's cooked up a response to the bad press that the film was generating by announcing its "Corporate Responsibility Report," which highlighted the company's
new, healthier menu, "responsible purchasing" initiative and other good deeds. Unfortunately, the media took the moves with a grain of salt and a largely ignored that part of the
story.

Katie Delahaye Paine is CEO of KDPaine & Partners, Durham, NH. She can be reached at 603.868.1550; [email protected].

Subway
Criteria	Grade	Comments	Advice
Extent of coverage	B	Because the incident happened in Germany, there was relatively little coverage of the brouhaha by American media. The fact that the images were on the Web, however, created a secondary wave of publicity.	Just because you've quieted a crisis down in the media doesn't mean it won't have a life of its own on the Web, particularly if there is a visual element to the crisis.
Effectiveness of spokespeople	F	Subway spokespeople contradicted each other and essentially denied everything, which made them look unconvincing and confused.	Always get everyone on the same page, before you start making statements to the media. As we saw in the Coca-Cola crisis a while back, this is particularly important when dealing with foreign media reps who just love it when the locals and the U.S. get into a public battle.
Communication of key messages	F	Ostensibly, the key message was that Subway is healthier for you than McDonald's. But the message that came through was that the Germans were anti- American and insensitive.	It's never easy to get messages out in a crisis, so sometimes the best you can hope for is that you are perceived as concerned and contrite.
Management of negative messages	C	The good news is that the crisis was relatively short lived. The bad news -- as we have learned all too frequently of late is that -- images have a tendency to linger in peoples' minds longer than words, so the anti-American message may stick around for a while.	One necessity in today's environment is to understand if and when negative messages are resonating with customers. Good on-going measurement of community and customer relationships is essential to understanding what messages are in fact being communicated.
Impact on consumers	D	Despite the assurances from Subway's corporate offices that the images were only distributed in a press kit a German customer had one in hand, a fact that no one seemed able to explain. As a result, the incident got even more publicity and more consumers saw the images (and had the potential to be offended).	It's safe to say in these times that whatever is in a press kit is likely to end up in the hands of the general public, so never assume that what you give to the press stays there.
Impact on shareholders	B	Subway's stock didn't suffer much from the incident, no doubt because it was localized and far away.	Shareholders get concerned when a crisis drives customers away. As long as you can show that the customers keep coming back, shareholders will be happy.
Impact on employees	C	The biggest impact will be on the credibility of spokespeople who refused to take ownership for the problem.	Owning the problem and being open and direct are the only ways to build credibility with employees.
Overall score	D	This is a classic case - sure to be chewed on for years by the PR industry and academics alike-- of how not to handle a corporate crisis that happens overseas.	When dealing with foreign operations and foreign media, it is even more important to make sure that your spokespeople are all on the same page, on message and equipped with solid answers.

McDonald's
Criteria	Grade	Comments	Advice
Extent of coverage	D	One might assume that McDonald's has enough publicity as a result of "Super Size Me" -- and the general cultural emphasis on America's eating habits -- to last a long time, but the release of the Corporate Responsibility Report went largely unnoticed by the media.	The media is notoriously skeptical of "good deeds" reports on the part of major corporations, particularly in response to a spate of negative publicity. If possible, schedule the release of such reports during slow news times, long after any crisis has passed.
Effectiveness of spokespeople	D	McDonald's CEO Charlie Bell said all the right things in the press release, but almost none of them were picked up in the media.	If you really want the media to pick up on your CEO's quote, make sure he or she says something colorful. (All CEOs should take a lesson from Southwest's Herb Kelleher.)
Communication of key messages	C	Most reporters saw the release of the report as a promo for McDonald's new menu and a response to the criticism generated by "Super Size Me" rather than what it really was: a progress report on the company's CSR activities from the time that the last such report was released in 2002.	Never underestimate the power of a popular movie to shape people's opinions. Messages generated in a widely distributed film tend to have a more lasting impact than anything you might generate in the media.
Management of negative messages	D	After years of being the poster child for bad eating habits, it will take more than one Corporate Responsibility Report and a change in menu to get the message across that McDonald's cares about healthy eating habits.	No amount of crisis management or good PR can turn around an image overnight.
Impact on consumers	B	Given the media's skepticism, McDonald's needs to do more than just issue a press release if it wants to get the word out about its CSR initiatives.	All the research shows that good corporate responsibly can impact customer behavior as long as the consumers are aware of the activities.
Impact on shareholders	B	No doubt shareholders will be pleased by the effort; since the eating habits of America are changing. The fact that McDonalds' profits have risen for the first time in awhile should also delight the stockholders.	It never hurts to have positive earnings or good financial news while you're announcing a CSR program.
Impact on employees	B	Since part of the Corporate Responsibility Report focused on how McDonald's treats employees, there should be more than a normal amount of employee interest in the report.	Employees have a tendency to pay more attention to news announcements and reports than one might think - certainly more than the average consumer.
Overall score	B	McDonald's gets a B for effort on this one. The company has taken action, is making changes and, most important, letting action speak more than words.	If you have a choice between doing and talking, always go with the former. Actions will do more to change an image than anything else.