Chipotle, The Mexican Grill 's Chain Restaurants Suffered From An E. Coli

920 Words May 4th, 2016 4 Pages
In November of 2015, some of Chipotle Mexican Grill’s chain restaurants suffered from an E. coli outbreak that contaminated their products. About 50+ customers in 11 states have fallen ill because of this issue (Kennedy, 2016). Around 20 of those were even hospitalized due to the seriousness of the outbreak. The Chipotle team decided to endorse a Crisis Management plan in order to clear their name to the public. Chipotle closed 43 of its restaurants that were suspected to be affected so they could be sanitized, and investigate the source of the E. coli. Since the incident, Chipotle now takes serious safety precautions and safety measures to make sure that nothing like this will occur again. The franchise responded to the media immediately after the outbreak, and reassured the public that they were handling the situation at hand, in a fast and efficient way.
Chipotle took thoughtful effort that provided confirmation to the public that they were serious about the health of their customers, and closed their businesses to take proper care of the situation. However, after the sudden outbreak, customers remain hesitant to return back to the company, thus leaving business sales to drop increasingly over the past months. With fearful customers staying away, the company reported that restaurant sales fell nearly 15% in the fourth quarter, which caused a revenue drop of 6.8% for the period. The company was upfront about the cause of its sales woes in its earnings release (Kline,…

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