E. Coli Outbreak Leads to Increased Costs

All Chipotle lovers can rejoice now that the E. Coli outbreak is nearing zero infected people because of the safety standards being implemented.

On Monday, February 8th, all 1,971 restaurants were closed during lunch time to improve food-safety protocols after an E.coli scare.  The food borne illness outbreaks caused a 30% decline in sales for December and then a 36% decline in sales for January.  According to the article, “$16 million in non-recurring expenses resulted from the cost of throwing out food, impairment charges for kitchen equipment that will no longer be used, insurance claim estimates, increased marketing expenses, lab analysis of food samples and swabs, and the hiring of food-safety advisors.”  

Above is a delicious burrito that Chipotle can make for their customers.

After the outbreak, there was an increase in menu price to recover costs. Although some risks have gone away, there are still public lawsuits being filed. Food handling problems of catered food has become a major problem.  For example, there may be bacterial growth on food that is left out of refrigeration for too long at an catered event.

Freebies and Discounts to Win Back Customers

To combat this issue, Chipotle is giving away freebies and discounts when you text “RAINCHECK” to 888-222 on February 7th! Taste of food and use of quality ingredients are going to be highlighted in their largest marketing campaign now that the Centers for Disease Control and Prevention says that the E. Coli blowup is over. Their social media pages will instill their promise of Food with Integrity. Audits will be held every week and will account for half of the bonuses for managers. Customers are returning now that employees are more food safety conscious.