In 2014, Chipotle Mexican Grill became a prominent force in the food industry. They were bolstered by the fact that they were using high quality ingredients and healthy foods in their products. Forbes Magazine even praised Chipotle for their yearly revenue growth comparing their 18% to McDonald’s 2%. So how did they suddenly drop out of the spotlight? For any company, a food safety incident can be catastrophic especially if your company is built around this perception. This is where the ethical issue begins for Chipotle. Beginning on October 25, 2015 a number of people began feeling sick. Within weeks the Centers of Disease & Prevention declared an outbreak of E.coli. Interviews were then conducted for the reported ill patients from the states …show more content…
All of the ill patients had reported eating at the popular fast food chain Chipotle in days prior. The then popular fast food chain was left with an enormous ethical issue on their hands. The outbreak was never attributed to a certain product or ingredient, but Chipotle had an idea of where they went wrong. Possible cross contamination and improper food handling led to the number of reported victims of Chipotle’s nightmare that would bring business down from 475.6 million dollars in 2015 to only 22.94 million dollars in net income in 2016 (Statista, 2016). Customers were shocked after the initial reports of the outbreak had begun. Desperate consumers began asking questions such as, how did this happen to such a popular food chain that prides itself in fresh and real ingredients? Where did Chipotle go wrong for this outbreak to happen? Why did this happen? These are all questions our group answered with dedicated research and …show more content…
They went from one of the most promising fast food companies in the country to a company that turned on its own values. Chipotle closed forty-three stores even though the CDC was only concerned about eight. This was part of Chipotle's effort to show they really do care about their food safety and their committed to restoring their reputation as a company that lives by "Food with Integrity”. Chipotle’s co-CEO sent out a statement saying, "The safety of our customers and the integrity of our food supply has always been our highest priority," (Geier, 2015). In the past, on multiple occasions they have backed their beliefs in integrity for their food supply. In an effort to back this statement made by Chipotle’s management they took pork off their menu in 2015, so they could be sure its livestock was being raised by humans and not by machines. They wanted to show that if their ingredients aren’t up to their standards they want no part in serving it. Another ingredient that has recently generated a lot attention is queso. Queso generates massive amounts of money for other companies like Qdoba. However, Chipotle didn’t want to sell queso at first, because it contains artificial stabilizers that counters their food standards. Chipotle’s marketing team released a
The company is driven by a strong set of values, even if some of those decisions increase its costs internally. This is especially the case with the sourcing of its ingredients and meats. In fact, the high-quality ingredients and advanced cooking methods used by Chipotle are second to no other fast-food chain. Among recent developments, the leader in fast-casual dining concepts plans to become absolutely GMO-free by the end of 2014. Although the aim is not new, it shows Chipotle’s commitment to bring fresh ingredients to the table. Besides offering high-quality meals to its customers, the portions are generously sized and the value is unmatched. There are very few places that can fill you up for less that $10 with quality food, and not junk. The triad of fresh, pure ingredients, cutting-edge cooking methods, and tremendous portions gives Chipotle a mouthwatering appeal.
In recent years, it is not even necessary to turn on the news to hear about the bad reputation farming has been getting in recent years. With the media focusing on things like drugs in animals and Pink Slime, or Lean Finely Textured Beef, it is a wonder that people are eating “non-organic” foods. However, many pro-farming organizations have been trying to fight back against these slanders. Still, the battle is not without heavy competition, and a good portion of it comes from Chipotle, a fast food Mexican restaurant that claims to only use completely organic ingredients in their food. Chipotle is constantly introducing advertisements claiming to have the natural ingredients, while slandering the names of farmers everywhere.
Most of them reported eating food from Chipotle within the week before their symptoms began. Twenty of those individuals have been hospitalized.
Tyson Foods has entered millions of homes in America and is seen as a convenient, healthy form of sustenance. This company portrays itself as a family company, that provides safe food for a growing world population; however, it is in fact contaminated and filled with deceit, deception, and fraudulence. Tyson vocalizes that it has the consumer’s best interest in mind, meanwhile its sole interest is its revenue. It manufactures second-rate chicken byproducts and disguises it as a healthy choice for families. It has been discovered that Tyson distributes contaminated foods, injects its products with antibiotics, and abuses its livestock; thus, society needs to prohibit such rancid foods from entering its homes and being fed to its children, and to put an end to the corrupt company’s empirical power.
Chipotle’s Chief Executive Officer, Steve Ells has been reputed for having started the restaurant chain in a unique way which has contributed to its apparent success over its main competitors. Chipotle business has grown exponentially from when it was first formed with most of this growth attributed to the founder’s control process in the business. When Steve Ells first got into the industry, he acknowledged the need for promoting innovation and
C. Thesis Statement- The purpose of this presentation is to demonstrate why Chipotle is an undisputed leader in the growing fast food casual.
Local products from local farmers are used to produce the highest quality products with the healthiest ingredients for consumers within Chipotle. Not only do they strive for better food but also healthier food for the customer. The inspiration for Chipotle starts with Steve Ells and is reflect into the company. Ells even testified in congress in 2009 in support of eliminating the use of antibiotics and hormones in ranching and farming (Ells, 2010). This is reflects back into the Chipotle company through their products and employees which in turn represents their amazing social responsibilities in the food service industry.
The E Coli outbreak was because of Chipotle’s food chain. Incidentally, when your business model is built upon the idea of serving local fresh food, often with the promise that it’s ethically grown and sourced, your supply chain becomes more complex. Consequently, more complexity means more risk. Chipotle is walking a narrow line between offering “food with integrity” and the risk of introducing foodborne
“Subway says boosting sales at existing restaurants is its biggest priority right now (Peterson, 2015).” From 2012 to 2014 Subway saw a decrease in sales and realized some of their competitors like Chipotle were making more money. How were they making more money? Well Chipotle starting advertising with antibiotic free meat. Just recently Subway decided to follow the trend and do the same, at the beginning of 2015 Subway started advertising antibiotic free meat. The restaurant has already seen a drastic increase in profit. Once Subway and Chipotle put these antibiotic free labels on their food they quickly received more interest in their restaurants. This leads to the fact that the American consumer is not very educated about not only where their food comes from, but also how it is processed. These restaurants should not be getting rewarded with an increase in profit for providing the consumer with false information; in order for this to stop people need to realize they are being taken advantage
Operations: Chipotle has set standards from when the food is bought, to when it's produced and to when it's sold. This quality control is performed by their Quality Assurance group, which foresees all of these positions.
Every day in the United States, 200, 000 people are sickened by a food-borne disease. Schlosser’s urge for the consumer to assume responsibility for the travesties waged against American society by the fast-food industry is not a new idea.
In visiting Chipotle’s website, it is adherently clear that they are trying to do a few things to overcome their recent faux pas from the past. Putting a majority of their site’s focus on their sustainability story, how they are helping the environment,
cleanest meat that has been on the market, because the owners of the chains do not want their loyal customer to become sick, therefore soiling their nice reputation, such as what happened with Chipotle in the past year. The government follows less strict standards than many restaurants as the government stands on the side of the meat-packing industry, which is one of the biggest industries in the world. Their relationship is one of symbiosis: a mutually beneficial relationship between different people or groups.
Chipotle Mexican Grill founder Steve Ells had a vision to “change the way people think about and eat fast food” (Gamble, Peteraf, & Thompson, Jr., 2015). He wanted to create a
When Chipotle first opened in 1993, the goal was to serve quality food fast, but not be considered “fast food.” To avoid falling under the fast food stigma, Chipotle strives to find the best ingredients with respect to animals, farmers, and the environment. In order to achieve these goals, Chipotle has created a matrix organizational structure that is divisional by location and functional by authority. Chipotle recently expanded internationally to the United Kingdom, Germany, and France, each following strict guidelines assigned by corporate employees from their headquarters in Denver, Colorado. Similarly, each location is functionally organized according to authority: regional manager, district manager, store manager, assistant manager, and