While Chipotle is trying to manage the E.Coli scandal that hit its restaurants in Washington and Oregon they say that though they have closed 43 of their stores in the 2 affected states, they say it's not a big headache for them.
With at least 22 people becoming ill and probable cases coming, why isn't the brand worried?
Dutch Leonard, a professor at the Harvard Business School, specializes in crisis management tells Time that the dip in the stock market right now because of the bacteria scandal would hardly dent the popularity ranking of the brand as long as Chipotle is able to contain it in a small area.
Chipotle does have the upper hand on the matter however, since recent reports have cited the supply chain as the probable sources of the bacteria. What's Chipotle's advantage? They source their food supplies locally. Making it easier for them to trace the root of the problem and help them become transparent to their consumers - explains Andrew Alvarez, research analyst at IBIS World. It has more to do with convincing your customers that your food is safe - he goes on to say.
Chipotle is known to source their vegetables locally and supply their branches with humanely raised animals. Be that as it may, it's already seeing small pain points in the stock market by 2.5% and 2% of it's fast food stores have halted operations to prevent wider spread.
Currently, Chipotle has not communicated anything to the general public, pending investigations. It is still trying to determine the cause of the issue.
Chipotle might have the chill factor right now but if they don't get a handle on this problem, control the outbreak and explain to their customers that their food is still safe then they might be seeing more than a dip in popularity and financial rankings.
