Chipotle to Continue Giving Away Free Food Despite Loses

Recovering from last year's E.coli scare, Chipotle promised to continue giving away free food despite great losses.

Late last year, Burrito chain Chipotle faced an e.coli outbreak. CNN Money quoted The Centers for Disease Control and Prevention that it was likely due to "a common meal item or ingredient" served at the popular Mexican food chain. Because of this, Chipotle suffered a downfall in earnings from 2015 up to early 2016. CNN Money said, "Chipotle said in January that it expects to incur between $14 million and $16 million in charges during the fourth quarter due to the outbreak."

Chipotle, however, is unfazed by the outbreak. They reinforced their commitment to continue giving away free food despite the issue faced by the food chain. Last February 8, they closed their doors for a food safety meeting to internally address the e.coli issue. And to make up for the lunch goers ruined plans, they initiated a free burrito giveaway. With their budget of $50 million this year for marketing and promotions, people can expect more free food promotions from the food chain.

According to Eater, Chipotle's recent free burrito giveaway is helping them bring back their customers. Their attempt to make up for closing their doors during a lunch break on February 8 resulted in the launch the free burrito giveaway. Customers only need to send a message, open a link and the free burrito coupon is on their way to the person's email address.

Some might think this isn't much of a good idea since customers are not yet fully confident to patronize Chipotle again, but Chipotle is optimistic that their move is working for their benefit. 

Last year, they have enumerated their 5-point recovery plan which includes new safety protocols and the $50 million marketing and promotional campaign to win back the hearts of burrito lovers.

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