Chipotle and E.Coli In late 2015 and early 2016, Chipotle food that was contaminated by two strains of the bacterium Escherichia coli O26 caused approximately 60 people to become ill. Although there w

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Chipotle and E.Coli

In late 2015 and early 2016, Chipotle food that was contaminated by two strains of the bacterium Escherichia coli O26 caused approximately 60 people to become ill. Although there were no deaths, 22 people required hospitalization. Since people have previously died from E. coli-related illnesses, the government treats these outbreaks seriously.

Your group is tasked with analyzing the situation faced by Chipotle and considering ways that the firm could have or should have responded. In Chipotle’s case, this includes their fall from grace that was as spectacular as their rise from obscurity, their separation from McDonald’s (which had owned a 90% share in Chipotle prior to 2006), and their public commitment to the quality of their ingredients.

The Centers for Disease Control and Prevention (CDC) and the U.S. Food & Drug Administration (FDA) became quickly involved in the incident.

Although we know how Chipotle responded to the outbreaks, the purpose of this exercise is to gain some experience putting together a Crisis Communication plan.

I. Background

Provide a brief profile of the company. This includes its history, when/where it was founded, where it trades stock, ts current market capitalization, key products or services, how is it generally perceived by the public, etc. Also, what happened to put the firm in crisis? Give a precise timeline.]

II. Type of Crisis

A crisis is only a crisis if it could cause some sort of loss. In this section, try to decide what sort of crisis the company faces. Sometimes, a crisis will impact all three areas. (e.g., when Union Carbide’s plant in Bhopal, India, released poisonous gas killing thousands, it represented a tremendous crisis in public safety, as well as a massive financial and reputation loss). That said, Union Carbide’ reputation loss amounted to little as the company sold massive quantities of industrial chemicals, and its marketplace seemed not to care about the negative press.]

a. Public Safety

b. Financial Loss

c. Reputation Loss

APA styled, References and In text citation – Ive attached the following articles that can be used

Chipotle and E.Coli In late 2015 and early 2016, Chipotle food that was contaminated by two strains of the bacterium Escherichia coli O26 caused approximately 60 people to become ill. Although there w
Dec. 7, 2015 Long Island Business News BridgeTower Media Holding Company, LLC Brief article 357 words 1360LFull Text: Byline: The Associated PressChipotle shares continued to fall Monday as the chain faces the first decline in a key sales figure after an outbreak of E. coli linked toits restaurants.The chain known for touting its quality ingredients said Friday it expects sales to drop between 8 percent and 11 percent atestablished locations for the fourth quarter if current trends continue. That would mark the first time the figure fell since Chipotle wentpublic in 2006.Chipotle’s stock was down 4.3 percent at $537.17 in midmorning trading Monday.In a filing with the Securities and Exchange Commission, Chipotle said sales have been “extremely volatile” since it closedrestaurants in Oregon and Washington in early November as a result of the outbreak. Sales plummeted by as much as 22 percent asadditional cases were reported, and were down 16 percent for November.The Centers for Disease Control and Prevention had said earlier Friday that the outbreak had widened and sickened 52 people innine states. It has not yet identified the ingredient that made people sick.The first cases were reported at the end of October, and the agency said the most recent illness started on Nov. 13About 48 million people get sick from a foodborne illness each year, according to the CDC.Chipotle, based in Denver, says whatever the likely ingredient was that made people sick is out of its restaurants and that it isadopting stricter food safety standards.The company, which has benefited from marketing its use of local ingredients, said some of its local produce suppliers might not beable to meet the new standards. Locally sourced produce accounts for a “relatively small percentage” of the produce the chain uses,said Chris Arnold, a Chipotle spokesman.Jeffrey Bernstein, a Barclays analyst, noted that fast-food chains have recovered from similar foodborne illnesses in the past. But hesaid Chipotle’s recovery will likely take longer given greater social media awareness.Bernstein also noted that Chipotle is known for its “Food with Integrity” slogan, which makes the E. coli cases “all the moredamaging.” [c] 2015 Dolan Media Newswires. All Rights Reserved.The Associated Press COPYRIGHT 2015 BridgeTower Media Holding Company, LLC (MLA 9th Edition)    “Chipotle shares down after sales warning linked to E. coli.” , 7 Dec. 2015. , . Accessed 24 Oct. 2021. GALE|A437110563

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