Outbreak CrisisCRISIS COMMUNICATIONS ANALYSIS

Company Overview

Outbreak TimelineOutbreak: E. ColiMonth: July

Location: Seattle

Customers Effected: 5

Reason: Unknown

Outbreak: NorovirusMonth: August

Location: Simi Valley, CA

Customers Effected: >234

Reason: Unknown

Outbreak: SalmonellaMonth: August & September

Location: Minnesota

Customers Effected: 64

Reason: Tomatoes

Outbreak: E. ColiMonth: Started October 19th

Location: CA, IL, MD, MN, NY, OH, OR, PA, WA

Customers Effected: 52

Reason: Unknown

Outbreak: NorovirusMonth: December

Location: Boston

Customers Effected: >136

Reason: Unknown

Source: Food Safety News

Company Website Response

Source: www.chipotle.com

Positive Communication StrategiesSTRENGTHS

•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

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

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