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Chipotle Outbreak Crisis Analysis & Metrics
- 1. Outbreak Crisis CRISIS COMMUNICATIONS ANALYSIS
- 3. Outbreak Timeline Outbreak: E. Coli Month: July Location: Seattle Customers Effected: 5 Reason: Unknown Outbreak: Norovirus Month: August Location: Simi Valley, CA Customers Effected: >234 Reason: Unknown Outbreak: Salmonella Month: August & September Location: Minnesota Customers Effected: 64 Reason: Tomatoes Outbreak: E. Coli Month: Started October 19th Location: CA, IL, MD, MN, NY, OH, OR, PA, WA Customers Effected: 52 Reason: Unknown Outbreak: Norovirus Month: December Location: Boston Customers Effected: >136 Reason: Unknown Source: Food Safety News
- 4. Company Website Response Source: www.chipotle.com
- 5. Positive Communication Strategies STRENGTHS •2006 opened 510 restaurants with growth of 2,010 to date •Strong balance sheet, no debt, cash flow •Customer Loyalty/ Strong Brand Relationships •Local Grower Support Initiative •Swift response to outbreaks •Some illnesses were revealed by CDC as not related OPPORTUNITIES: METRICS TO ENSURE SUCCESS •Direct & Digital Marketing • Top Sources: Reviews, Survey Feedback • Net Promoter Score • Trending Themes • Top Sources • CTR • Search Engine Ranking • Customer Satisfaction Index • Social Networking Footprint • Online Share of Voice Sources: www.ststista.com •Enhanced Food Safety Measures • Media Exposure • Coverage/Composition • Content Stream: Interaction on Social Media • Ratings/Impressions •Promotional Programs • Top Locations: Visitors, Volume • Top Sources: Complaints, Feedback • Content Stream: CTR, Brand Awareness, Engagement
- 6. Negative Communication Strategies WEAKNESSES •Leader in food safety mass and repeated failure •Stakeholder investment •Consumer retention after outbreak •Consumer trust in quality of ingredients • Dependent on 99% of total restaurants in U.S • Competition of other casual dining chains THREATS: METRICS TO REVEAL FAILURE •Income Statements • Net Profit Margins • Operating Profit Margin • Same-Store Sales Growth Estimates • Analyze: Latest, Outbreak Months, 1 Month Prior, 3 Months Prior •Stock Price & Earnings • Earnings Per Share Estimates • Analyze: Latest, Outbreak Months, 1 Month Prior, 3 Months Prior •Consumer Trust • Sentiment Score • Net Promoter Score • Customer Retention Rate •Valuation Multiples • Market Growth Rate • Market Share • Brand Equity • Search Engine Ranking • Ratings/Impressions Sources: www.research.valueline.com
- 7. Resources A Timeline of Chipotle’s Five Outbreaks | Food Safety News. (2015). Food Safety News. Retrieved 14 April 2016, from http://www.foodsafetynews.com/2015/12/a-timeline-of-chipotles-five-outbreaks/#.VxPQE2OH-Oo Chipotle Mexican Grill 2015 | Statistic. (2016). Statista. Retrieved 15 April 2016, from http://www.statista.com/statistics/221456/number-of-chipotle-restaurants/ Chipotle: Food with Integrity. (2016). Chipotle.com. Retrieved 14 April 2016, from https://www.chipotle.com/food-with-integrity Chipotle: Founder Letter. (2016). Chipotle.com. Retrieved 14 April 2016, from https://www.chipotle.com/founderletter Chipotle: Our Company. (2016). Chipotle.com. Retrieved 14 April 2016, from https://www.chipotle.com/company FDA Investigates Multistate Outbreak of E. coli O26 Infections Linked to Chipotle Mexican Grill Restaurants. (2016). Fda.gov. Retrieved 15 April 2016, from http://www.fda.gov/Food/RecallsOutbreaksEmergencies/Outbreaks/ucm470410.htm - what Value Line - Research. (2016). Research.valueline.com. Retrieved 15 April 2016, from https://research.valueline.com/research?#sec=company&sym=CMG