Chipotle Crisis Summary

Chipotle ventured into a new territory when it was created, as it had an innovative vision for fast-casual restaurants. By using fresh and quality ingredients, Chipotle raised the bar in their segment. The service line where customers could see their order being prepared enhanced the experience of Chipotle. Consumers who were used to eating at fast-casual restaurants where the food was frozen and made out of sight were able to savor the uniqueness of Chipotle. These differences helped Chipotle become successful. However, as competitors copy the traits that make Chipotle unique, Chipotle must adapt and overcome in order to remain a profitable company.

In response to backlash from customers and investors, CEO Ells took a step in the right direction. One of Chipotle's first steps in resolving the crisis was parting ways with Co-CEO Monty Moran. The image that Moran portrayed of Chipotle did not reflect successful leadership, nor did it reflect their values. After making the move to part ways from Moran, Chipotle’s stock rose 5% (Carr, 2016). Investors felt that this was the first step in gaining their trust and confidence within the

Additionally, support for local and organic farming has shown a decrease in fast food sales. Recently fast food giant, Mcdonalds, has had to close nearly 700 restaurants due to lack of sales (Wahba). The general public is speaking out more and is stating they want fewer additives and more “real” food to be convenient. According to the WORLD HEALTH ORGANIZATION “GMO’s or “Genetically Modifies Organisms” are organisms in which the genetic material has been altered in a way that does not naturally occur”. The actual effects of GMO’s in food have had extensive research done to confirm suspicions that they are hazardous to the human body and are not suitable for consumption. Chipotle was the first fast food chain to disclose any artificial ingredients

Where and when did you observe the behaviors? Who made the observations? On 1/28/16, En-Lei observed inside of Chipotle. On 1/29/16 and 1/30/16, Matt observed across the street from Chipotle. On 2/1/16, Dana observed from a window across from Chipotle in the lobby of the Huntington Hall. On 2/2/16, John observed across the street from Chipotle. What behavior categories did you observe? How did you define each behavior category? We observed the outwardly happiness or unhappiness of individuals leaving Chipotle during lunch hours. We defined outwardly happiness as the smiling of each individual leaving Chipotle and unhappiness as the lack of a smile. When and how did you make observations? We used the frequency method of observation during lunchtime

Chipotle, ever the noble ambassadors of good burrito will, have been humble and cooperative throughout the investigation. Health officials are giving the company kind words and gold stars (despite, you know, the salmonella). One spokesperson for the department of health said that “Chipotle has been extremely proactive in collaborating with investigators to quickly control the outbreak and identify its source.” Another asserted the Health Department’s confidence that it is now safe to eat at Chipotle, sharing that he had a burrito bowl there last Wednesday.

The following is an analysis on three different behaviors observed 5 different times for ten minutes. The behaviors observed were: frequency of getting a drink, phone usage, and talking. The purpose for choosing frequency of getting a drink was; you hear that Chipotle is always crazy busy, but how many customers actually buy drinks? The purpose for choosing phone usage was; how many opportunities for social interactions are missed due to the fact that everyone is glued to their phones? This sparked the curiosity of how long are people really on their phones during a certain time period. Lastly, is talking. With phone usage being a problem, how long are people actually engaging in social interactions with each other?

Cold steel tiling and off-kilter pop music overwhelmed the scene at which is I was presented with a moral dilemma. A man with a black t-shirt and hat asked the question that, to this day, I can’t find the perfect answer to: White or brown rice? How could I choose? One of my greatest moral dilemmas is deciding between getting rice that tastes better, or the rice that gives me a false sense of being nutritionally responsible. How could anyone be just a brown rice person or just a white rice person? Upon reflection on my experience at Chipotle, as well as many other “this or that” scenarios, I came to a conclusion: There are two types of people in the world: those who believe that a person can usually be categorized into one of two groups, and

Chipotle is facing numerous challenges due to the fact that E. coli outbreak which requires the corporation from the key stakeholders to keep it under control and apply the new food safety protocols which can aid to bring the regular customers back. Although the main cause remains a mystery, Chipotle’s E. coli outbreak has been authoritatively declared officially over by the experts. However, since the poisoning outbreak, the impact of the reduced number of customers affects the profit which the company used to enjoy before such eventuality (Scholes 27).

According to Bloomberg Businessweek’s article “Inside Chipotle’s Contamination Crisis: Smugness and Happy Talk about Sustainability Aren’t Working Anymore,” the owner of the food chain Ellis is very smug towards the crisis. (Berfield, 2015) I do not understand personally how any business owner and sit there and tell the interviewer that the company has difficulty knowing when, where, and which ingredients are being delivered and to what restaurants. How does a business even open their doors morally with this procedure? Also blaming the contamination on forces the company to change their ways, sorry but this is unacceptable, if your ways were safe in the first place you wouldn’t be forced to do anything this would have never happened

Chipotle’s mission is to change the way people think about fast food, and to deliver “Food with integrity”, which has become the company’s moto. In order to support this commitment, in early 2013, Chipotle started implementing a whole chain traceability and transparency program that is unprecedented in depth and breadth. To mount the ambitious project to achieve whole supply chain traceability, Chipotle is partnering with FoodLogiQ, a GS1 US Solution Partner, offering software solutions that enable companies to proactively track and manage data inside and outside their organizations, leveraging the use of GS1 Standards with its cloud-based approach. This program is going to incorporate several activities which to ensure the relationship with suppliers, and the unaffected flow of food, and raw ingredients. The main objectives of the traceability program are:

Changes in customer preferences, general economic conditions, discretionary spending priorities, demographic trends, traffic patterns and the type, number and location of competing restaurants have a moderate effect on the restaurant industry (Chipotle, 2010). One example of customer preferences being a driver in the industry is the “Whole Food-ism Movement” which has put a large focus on organic, antibiotic-free, and non-processed foods (Mansolillo, 2007). Consumers now look for healthier options when eating and an overall healthier lifestyle. Chipotle has been able to benefit from this movement by carrying on their “Food with Integrity” mission (Chipotle, 2010).

Steve Ells is the founder and CEO of Chipotle. Steve is a trained chef and opened his first Chipotle store in 1993 at a former Dolly Madison ice cream store in Denver, Colorado. His goal was to serve high quality, delicious food quickly and in a “fast-casual” setting (Ells).

Chipotle’s “Back to the Start” advertisement captures the sentiments of the audience by depicting Chipotle’s competitors’ practices as unethical. In both “Back to the Start” and the “Scarecrow” advertisements, Chipotle attempts to align itself with society’s growing belief that humane agriculture is better. Chipotle’s advertisements present their practices to be ethical, which sets its products apart from its competition. However, Chipotle’s message employs the same sentimental appeals and logical fallacies that are effective in their competitors’ advertisements.

Fast food company’s pride themselves on making orders and food in a timely fashion as well as providing high quality food and an atmosphere for all, but what happens when a huge crisis happens and it ends in lawsuits. In this article, I will discuss Taco Bell’s 2006 E. coli crisis and how it came to be a crisis for the company. Next I will discuss some of the actions Taco Bell took to manage the crisis once it escalated and how the company approached to handle the crisis. In other words, did they do it great or poorly. Lastly, I will discuss how certain theories relate to this E. coli disaster that affected dozens of people and hurt business.

As of late 2015 and early 2016, Chipotle Mexican Grill faced a serious problem with food safety and received an ethical backlash because of it. According to the Food and Drug Administration (FDA), the Centers for Disease Control (CDC) along with state and local officials investigated two cases of E. coli O26 infection outbreaks from food served by Chipotle restaurants in several states