Chipotle Mexican Grill Incident

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

Two more people have filed federal lawsuits against Chipotle after they said they were infected with E. coli in an outbreak linked to the popular Mexican chain in the Pacific Northwest. The Seattle attorney representing Jessica Ellis of Mount Vernon, Washington, and Chris Collins of Lake Oswego, Oregon, is asking the federal court in Portland to hold Chipotle liable for their illness. There are at least 41 people on the list of cases spanning two states 28 in western Washington and 13 in Oregon’s Portland area. The latest case was confirmed in Oregon.

If you are not aware of the recent food poisoning incident with Chipotle, then clearly you have been taking some time off from the internet. An outbreak occurred from Chipotle in which more than 40 people became ill with E. coli. Chipotle has been in hot water since this, and it makes us realize that not all food is safe. With this in mind, the idea of other dangerous foods, outside of Chipotle, should be addressed.

coli in Chipotle restaurants in Washington and Oregon has caused a negative shift in customer demand for the food served at the restaurant. In addition to that, due to the violation of health code regulation, Chipotle had to shut down forty-three food-chains in the infected counties. Because of the loss of forty-three Chipotle restaurants and the decline in consumer demand, the supply services and products also decreases. People who worked at these shut down restaurants loss their jobs and Chipotle loss their profits. The effects of the outbreak of E. coli in Chipotle restaurants caused a negative change the taste and preference on consumers. This will cause a decrease in consumers demand for food served at Chipotle due to their change in taste and preference. When Chipotle decided to shut down some of their doors in Washington and Oregon, this caused the company to lose some of their profits and their ability to produce their food in those counties which caused a negative shift in their market supply. Since there was a negative change in consumers taste and preference for the food served at Chipotle, their satisfaction and enjoyment for consuming that product and service also called utility reduces

This article is about how Chipotle was with a federal grand jury subpoena due to a connection with norovirus in a Simi Valley restaurant. There was outbreak of the norovirus and/or E. coli; thus causing many of the chain restaurants to temporarily shut down. Nearly a month after they reopened those restaurants almost 150 college students had a norovirus after eating Chipotle. Which in result is causing the FDA to use criminal sections on these food safety outbreaks.

Hsu, Tiffany. "Chipotle Earnings Soar 25% as Prices and Customer Traffic Rise." Chipotle Earnings Soar 25% as Prices and Customer Traffic Rise. Web. 20 Oct. 2014. .

In the chipotle article it states that many of their restaurants were being just down by the Food and Drug Administration in almost 9 states. The reason why so many were closing was because of viruses spreading which were E. Coli and the norovirus. The they are still investigating if they would have criminal charges or not.

Chipotle Mexican Grill has been trying to recover from their e Coli outbreak in 2015 and planned on finally escaping the decline in 2017. They planned on doing this by regaining the trust of customers (Lahart, Justin). Things were looking up for the company as sales were up by 17% and their profits increased by more than double. However, things have not gone as the company planned this year, and now the company has begun to once again decline. Although the recent Hurricanes Irma and Harvey have not caused a large impact on the economy as a whole, they have caused a major decline in Chipotle’s earnings in the recent third quarter, as 425 of their locations were in the path of either of the storms (Wiener-Bronner, Danielle). Another negative factor that is affecting the company is skyrocketing prices of avocados. The price of the fruit is up by 125% since January. Two reasons behind this would be an unsatisfactory harvest and an increasingly high demand for avocados. One more factor behind the company’s plummeting stock is a data security hack that allowed credit card information to be pilfered from customers in April 2017 (Gillespie,

Chipotle has been given a subpoena, which is an order to attend court, because they’re under investigation for a norovirus incident at a Simi Valley restaurant. In a filing with Securities and Exchange Commission, Chipotle is required to produce a “broad range of documents” related to the isolated incident in August. The investigation is being conducted by the U.S attorney’s office for the Central District of California in conjunction with the FDA. Chris Arnold, Chipotle spokesman, email that the franchise would cooperate fully in the investigation, but the company does not discuss pending legal actions as matter of policy. First the E.coli outbreak, now the norovirus, Chipotle is under a lot of fire as is loses over 30% of profits.

In conclusion, Chipotle must look and determine the extensive damages of what the sickness case studies are doing to the company while also ensuring the customers are satisfied and the company is in good wraps. Dezenhall and Weber provide a great tool to enabling crisis communication to be effective and collaborative with the general public so that the crisis can pass over and the company along with the public can get past a negative connotation with products that many people love. As PR personnel work towards building good will of the Chipotle franchise, they must remember what their opponent is feeling while also applying the idea that customers are listening to every move Chipotle makes. Comparing Chipotle to the concepts of Damage Control,

Chipotle is in the fast food segment, where setting up a food joint is easy. And acquiring suppliers and buyers is also relatively easy. But industries like these essentially work on customer trust and support. It is a rare case of how one small event can tarnish a company’s reputation overnight. It was probably something out of a nightmare for Chipotle’s employees when E. Coli was discovered in their food ingredients and discouraged customers to visit Chipotle stores. This also hit their stocks, and they never quite recovered from the downfall. Chipotle’s motto of serving food with dignity is something they have always stood by and adhered to. Thus, they wouldn’t have compromised on anything. (1) After initial trouble, which started in the summer of 2015, things have now relatively calmed down and Chipotle is doing marketing at an unprecedented level. Industries which are hit by health problems, rarely recover this fast. Its stocks and market reputation is bound to go down.

My orthodontics say that my top row of teeth are too close together. So I have a palate expander to widen the top row of my teeth so new ones can come in. I think of my palate expander as a bridge to cross from one side to the other. But this bridge is evil and catches food. Food and my expander don’t go well together; and they never will. The food is tricky to free, so I use a stick thing that the orthodontist gave me, and water to swish the food out. There are certain foods that I am not aloud to eat, like sticky things, they could pull out the expander, and hard stuff, they could chip the expander. I am also not allowed to eat popcorn, the kernels could get

Chipotle’s threats arise from fierce competition in their market segment of quick-service and casual dining because competitors offer lower cost and value menu options. Increased labor cost impact their operating costs and increasing food safety measures and regulations might increase related

When a company or person is doing well, there will be people who intend to copycat to get a little piece of the profits. It is very likely that the challenges facing Chipotle would drive consumers away from its menu to copycats offering other food types. According to Nicholas Fernandez, there are 5 fast-casual restaurants that could

Chipotle Mexican Grill was founded by CEO Steve Ells in July 1993 after receiving his degree in culinary. He worked in in a high end restaurant for two years he inspired to create his restaurant from small Mexican restaurants in San Francisco mission district. Steve’s idea is to put his mark on the concept by stuffing tortilla with gourmet ingredients. He used small business loan and financial funds from his father and Steve Ells opened his first restaurant named by Chipotle Mexican Grill in Detroit, Michigan. Steve created an open kitchen to make the customers interact directly with the employees and have control on the food they are ordering. Chipotle Mexican Grill is on of the fast Mexican restaurant chains, with 400 outlets in 20 states.