CASE study 1 Non-GMO, organic, locally sourced... these terms are now a common part of our food vocabulary, although not typically associated with the fast-food industry. Chipotle entered the fast-food scene in the early 1990s with a seemingly impossible goal of creating a healthy fast-food alternative.88 Chipotle's promise of "food with integrity includes fresh, locally sourced ingredients and naturally raised meats. They effectively met this promise for many years, but as the popular fast-food chain has grown to more than 1,500 locations, the restaurant's ability to promise such quality while meeting food safety standards has become a challenge. Attempting to deliver on this promise on a national scale has created a complex and risky supply chain challenge for the company. Chipotle's food contamination problems started with an E. coli outbreak in July of 2015 in Seattle. Next was a norovirus outbreak in California, followed by salmonella in Minnesota. Other foodborne illnesses emerged among Chipotle customers in nine more states. Over the course of a few months, more than 500 customers were sick from contaminated food in Chipotle stores across the country. Sales dropped 30 percent during the outbreak, and several stores closed for an extended period of time. The company's stock value
CASE study 1 Non-GMO, organic, locally sourced... these terms are now a common part of our food vocabulary, although not typically associated with the fast-food industry. Chipotle entered the fast-food scene in the early 1990s with a seemingly impossible goal of creating a healthy fast-food alternative.88 Chipotle's promise of "food with integrity includes fresh, locally sourced ingredients and naturally raised meats. They effectively met this promise for many years, but as the popular fast-food chain has grown to more than 1,500 locations, the restaurant's ability to promise such quality while meeting food safety standards has become a challenge. Attempting to deliver on this promise on a national scale has created a complex and risky supply chain challenge for the company. Chipotle's food contamination problems started with an E. coli outbreak in July of 2015 in Seattle. Next was a norovirus outbreak in California, followed by salmonella in Minnesota. Other foodborne illnesses emerged among Chipotle customers in nine more states. Over the course of a few months, more than 500 customers were sick from contaminated food in Chipotle stores across the country. Sales dropped 30 percent during the outbreak, and several stores closed for an extended period of time. The company's stock value
Chapter1: Taking Risks And Making Profits Within The Dynamic Business Environment
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