Chipotle faces hard times after food poisoning incident

Recently, Chipotle temporarily shut down 43 restaurants in the Pacific Northwest last month. The reason stated then was a suspected E. coli outbreak. Everybody assumed then that this storm would quickly pass. But the real scenario turned out to be opposite.

In the following weeks, consumers in seven different states contracted foodborne illnesses from eating at Chipotle. Adding to the situation is the latest report of 120 students from Boston College getting sick after eating at Chipotle. The cause of this recent outbreak is not E. coli, though. Rather, it has been reported that the cause this time is norovirus. Whatever the case, the restaurant chain is losing on consumer confidence. Chipotle’s problem is its route to bounce back is same as its route to glory, and that seems a grave problem.

The problems pile up for Chipotle

Chipotle’s reputation was built on its usage of fresh and locally sourced ingredients. This process provided the restaurant with a major branding advantage and made it reliable, too. This decision made it difficult for Chipotle to deal with different local suppliers and ensure food safety. Chipotle’s USP was that it was different from traditional fast-food chains. It prepared meals by hand, right in front of the customer. This makes Chipotle’s slogan, “Food with integrity,” sound painfully ironic in the current scenario.

History has it that every time a restaurant faces such situation, it has lasting effects. In 2006, Taco Bell had an E. coli outbreak in its Northeast restaurants. The company faced some severe crises as it saw same-store sales drop for four quarters in a row. A worse case was witnessed by Jack in the Box restaurants in Washington, which marked the biggest outbreak of foodborne illnesses. The source of illness was E. coli again, caused by tainted beef that had not been cooked at the right temperature. The restaurant adhered to the federal standard that said to cook at 140 degrees but could not meet the state standard that said 155 degrees.

Will Chipotle fight back soon?

The company did not react righteously initially and refused to comment on the entire outbreak. But realizing the need of the hour soon, the company hired high-profile microbiologists that helped in establishing new safety protocols. They reformed their cooking process as well. A random test was conducted every 15 minutes that checked for E. coli. This was not just a reforming step; rather, it was a genuine transformation. But in spite of putting forth all the efforts, it took a long time for Jack in the Box to gain prominence again.

Thus, Chipotle can expect a strong return. It has an advantage of goodwill, too. The company was highly reliable and trusted before the crisis, but Chipotle will have to act fast and take highly stringent actions. The concept of Customer Loyalty has evolved over the years, and consumers are more likely to switch if they are dissatisfied. Chipotle needs to plan for a long-term struggle to build its reputation again. The process will be tough, as it prefers locally sourced ingredients. The fight might endure for only a short while, but it is surely difficult.