Chipotle took a huge hit from this E. coli that has drastically affected their sales and the value of their stock which dropped 36% in January. The article noted that their new changes will make the restaurant chain an industry leader in food safety.
It is clear that Chipotle is doing everything in its power to overcome this incident, which has defiantly influenced people's opinion on the company's food quality. It has already been reported that the outbreak is over, so there is only an upside for the company here on out. It might not be a bad time to look into investing in Chipotle.
http://www.bloomberg.com/news/articles/2016-02-08/chipotle-starting-program-to-help-farmers-ensure-safety-of-food
Interesting take on the article David. Chipotle also closed all 2,000 of their locations today in order to conduct internal meetings regarding food safety. They also released a promotion to customers in order to win them back, following the 36% decline in stock price. Chipotle offered every customer a free burrito if they simply texted the number 888-222 with the phrase "raincheck". It will be interesting to see how this plays out and if their marketing plan pays off.
ReplyDeleteIt is very nice to see a company own up to a mistake they made in their product and then to do everything they can to fix the problem and their image. I think the fact that Chipotle is taking these extra measures to ensure these types of mistakes do not happen again speaks volumes for the company. In my opinion, I think Chipotle will be able to bounce back from this crisis and will be able to regain their place in the market because of the way they have handled this situation.
ReplyDeleteI want to start off by saying that I think this is a smart move for Chipotle. I think more than anything, the steps that they have already taken has given me confidence in the safety of the product, and that this is really just another public relations move more than them being actually concerned about the safety of their product. Either way, it will be another way to enhance the public's confidence.
ReplyDeleteIn response to a different outbreak, Chipotle had previously commented that in an attempt to be safer they might have to lose smaller suppliers who won't "be able to meet the new safety standards", which could have a huge effect on farmers; Chipotle is choosing this time around, to back small farmers by funding new safety efforts, which is a positive strategic decision. This shows a strong company with a focus on their mission of using small and local farmers. The E.coli outbreak is also the third in disease that have come from Chipotle. They made changes after the last two viruses broke but obviously they still have more improvements to make since the previous changes didn't prevent E.coli. I think that Chipotle needs to focus their marketing campaign on safety so people can trust the food they are receiving.
ReplyDeleteFor Chipotle to release this statement is important to both consumers and investors because the validity of the company was in danger for a while and now the efforts the company is taking to improve the quality of their food is good to see. Helping farmers is great because It shows Chipotle are looking long term to ensure such an issue never comes up again. I agree with Elise their image needs to represent these new policies so that consumers and start trusting the famous restaurant again.
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