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Chipotle CEO apologizes for E. coli, norovirus outbreak
“I was surprised that there wasn’t a big line – there usually is a big line”.
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Chipotle Mexican Grill’s (CMG – Get Report) reputation has been tainted with reported norovirus illnesses affecting over 120 students along with an E. coli outbreak linked to the company’s restaurants.
Chipotle Mexican Grill in South Lake Union was closed Thursday by public health officials after repeated food safety violations. Otherwise, the company could see irreparable damage to a famously loyal customer base, which has been described as “cult-like” ever since the chain skyrocketed to success around 2012.
The new report added to the numerous others who have turned sick from another outbreak from the company’s chain in North West. However, the study seems independent from a series of E. Coli outbreaks over the past year that have affected around 52 individuals in nine states, impelling Chipotle to even shut down some restaurants momentarily.
But the outbreaks have led to a 10% drop in the company’s stock price.
Experts say Chipotle’s plan to improve food safety will face challenges that reflect deeper problems in the industry.
Jessi Levine, a junior in Questrom, said she didn’t eat at Chipotle much before the crisis occurred, but said she hopes they fix the issue as soon as possible.
The saga of Chipotle’s food safety woes continued today.
Some have used the outbreak to attack Chipotle’s use of fresh foods.
Asked on NBC’s “Today” program whether Chipotle could recover financially, Ells said “certainly”, a sentiment some analysts shared.
Moran also said the company would avoid marketing until the CDC has wrapped up its investigation, then run full-page print ads with letters of apology as well as a public information campaign that’s “perhaps more transparent, than any other company has ever been with regard to what happened and what we did”. It said that no ingredients that are likely to have been linked with the outbreak remain in its restaurants. “The outbreak is also a reminder that we need to ensure that resources are not diverted away from health departments, as they fulfill a critical job in keeping us all safe and healthy”.
“You gotta say that. We are going to make it the safest place.’ You can’t offer any kind of suggestion or sign that maybe you’re not fully on top of this”.
“I can’t believe there are actually people in there eating”, said Chad Molloy, 29, as he walked past an M Street NW location in the District on his way to District Taco.
At a presentation Tuesday for analysts in New York City, Chipotle executives noted the exposure period for the E. coli cases appears to be over.
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In related news, Chipotle’s stock rebounded with a five per cent bump following Ells pledge for better food safety. “I woke up with violent [gastrointestinal] symptoms and was unable to eat or really leave my bed until this morning”.