This rapid casual chain once troubled is now a customer's favorite

The brand has increased ashes of the Big 2015 Fallout.


WhenChipotle Has a series of food poisoning incidents in 2015 and has suffered a loss of sale of $ 600 million the following year investors almost immediately started speculating on "the next Chipotle". They did not need to look away: there was already a potential list of success, well-enjoyed growing catering chains and already on the Wall Street radar. They includedZOE cuisine,Belly,El Pollo LocoAnd, more recently,Noodle company.

Following its food poisoning disorders, however, Chipotle hit and has since retrieved and surpassed its annual sales levels, reachingJust less than $ 6 billion In turnover in 2020. Wall Street, in the meantime, welcomed the brand with open-air weapons, with the stocks of chipotle reaching a height of all time on Thursday after its second quarter report on stock market forecasts, according toCNBC.

How did Chipotle right? Ensret by scandals of public health (which have not finished in 2015, but have crossed in2017 and2018), Restaurant closures and a sudden loss over half a billion dollars of income, the chain would have been able to lose its fast darling and become stuck in a lower level of the industry - the fate of so many restaurants led inbankruptcy by the pandemic. Instead, it strikes now above its weight, not only at the top of its own segment of the restaurant industry, but ranking among theTop ten Large chains at all segments.

Here is a look at what exactly happened in Chipotle in 2015 and how he managed to bounce in the following years. For more, discoverThis chain of chicken restaurants once popular falls out of favor of guests.

1

A chain of food poisoning incidents

chipotle workers
Refuge

Chipotle had experienced public health problems in 2008 when some of his restaurants were related to the epidemics ofhepatitis andnorovirus, California and Ohio, respectively. Nothing could have prepared it for 2015, however, after between the months of July and November, the chain has been involved in no less than six incidents of food poisoning, involving E. coli, Salmonella and Norovirus.

An epidemic of Norovirus in a Simi Valley, Californ. Location that August has led to ajoint investigation by the US Prosecutor's Office of California and CDC, as well asAction class pursuit. The chain madenational titles Still in October, when E. Coli epidemic in Washington and Oregon returned 22 sick people and forced the temporary closure of 40 restaurants. The CDC launched a fourth monthinvestigation In the material, andChipotle action price quickly dive 12% when customers were completely removed.

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2

A corporate model damaged

chipotle
Refuge

AsRestaurant Business Stressed in a recent article on the subject, the actual harm of the food poisoning scandal concerned only the growth in sales of the year of Chipotle, but to its very professional model. Until the end of 2015, the chipotle claim to the reputation of the restaurant industry was the speed with which its new units reached high profitability - about two years, on average, to see margins of 28 %. In the months following the scandals of E. coli and Norovirus, with sales losses that reached $ 600 million, the average profits of Chipotle sank 15% - to be sure, but well below the rate to which he had, until then, supported its growth.

3

Swiveling off-place, in time

chipotlanes
Courtesy of chipotle

Following the epidemics of 2015 and aat the media level stack on targeting Its "food with integrity" slogan, quickly corrected the course, up its American annual sales by theAt the end of 2017 Then the launch in 2018 with a new general manager and a head office of the company.

In a movement that immediatelyincreased their stock price More than 12%, the occasional quick brand broughtBrian NiccolsFormerly the CEO of Taco Bell, to help find their point of view of the industry. Under the leadership of Niccol, the company based in Denverrelocatedin Newport Beach, California and as soon as2019 Started to invest enormously in the expansion of the mobile and off-place control, with nearly 2,000 locations equipped with "Digital Makelines" assisted assembly lines, dedicated to non-local orders.

4

Things are looking, standing

chipotle burrito bowl
Refuge

In other words, Chipotle became out of place of premise before "off-place" was one thing. In the mid-2020, the other major channels spared to adapt to a considerably increased demand for mobile, take-out and delivery services, the chain found well equipped to meet these needs.

The preparation of Chipotle had paid and in July 2020, the prospective brand reported Average annual sales of $ 1 million among its digital lines of numerics. Benefiting from its land " Chipotlanes "(Drive-Thru Lanes dedicated to mobile orders), Chipotle outperformed all its competition during the pandemic and finished 2020 as the Tenth higher winner Restaurant chain at the USS No to mention, society continues to direct the way in problems like durability and Increase in the minimum wage , winning his favors with a new generation of customers.

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