Non-GMO, organic, locally sourced . . . these terms are now a common part of our food vocabulary, although not typically associated with the fast-food industry. Chipotle entered the fast-food scene in the early 1990s with a seemingly impossible goal of creating a healthy fast-food alternative.89 Chipotle’s promise of “food with integrity” includes fresh, locally sourced ingredients and naturally raised meats. They effectively met this promise for many years, but as the popular fast-food chain has grown to more than 1,500 locations, the restaurant’s ability to promise such quality while meeting food safety standards has become a challenge. Attempting to deliver on this promise on a national scale has created a complex and risky supply chain challenge for the company. Chipotle’s food contamination problems started with an E. coli outbreak in July of 2015 in Seattle. Next was a norovirus outbreak in California, followed by salmonella in Minnesota. Other foodborne illnesses emerged among Chipotle customers in nine more states. Over the course of a few months, more than 500 customers were sick from contaminated food in Chipotle stores across the country. Sales dropped 30 percent during the outbreak, and several stores closed for an extended period of time. The company’s stock value dropped, and the company faced several lawsuits from customers who were sickened at one of the stores. Most national fast-food restaurant chains control food quality by using a central source for ingredients, exposing the supply chain to fewer outside elements. Simply put, the more basic the food chain, the easier it is to control. To keep their fresh food promise, Chipotle sought to prepare as many foods as possible at the local stores. They also sourced ingredients locally wherever possible, creating relationships with hundreds of vendors. The complexity of their food sourcing, coupled with in-store food preparation, is most likely what caused the food contamination problem. There were no known specific negligent acts on the part of Chipotle; the problems occurred because offering fresh food on such a large scale creates a situation where quality control is difficult. In most cases Chipotle did not know which foods were contaminated, making the fix even more challenging. In response to the crisis, they have implemented new controls to test for meat contamination and also changed some food-handling and preparation procedures. They’ve shifted much of their food preparation to centralized kitchens and started sourcing ingredients from fewer vendors, much like their fast-food competitors have done for years. To kick off their new standards, Chipotle closed all of their stores for an afternoon to train employees consistently on the new food-handling standards. While it seems the company is moving in the right direction, critics suggest that a company that claims to focus so much on food quality should have done a better job focusing on food safety. Why is it important for Chipotle to revise the company’s food-handling standards? Which controls would be more important to Chipotle: feedforward, concurrent, or feedback? Explain. How can Chipotle make sure that employees are following the new food handling standards?
Non-GMO, organic, locally sourced . . . these terms are now a common part of our food vocabulary, although not typically associated with the fast-food industry. Chipotle entered the fast-food scene in the early 1990s with a seemingly impossible goal of creating a healthy fast-food alternative.89 Chipotle’s promise of “food with integrity” includes fresh, locally sourced ingredients and naturally raised meats. They effectively met this promise for many years, but as the popular fast-food chain has grown to more than 1,500 locations, the restaurant’s ability to promise such quality while meeting food safety standards has become a challenge. Attempting to deliver on this promise on a national scale has created a complex and risky supply chain challenge for the company.
Chipotle’s food contamination problems started with an E. coli outbreak in July of 2015 in Seattle. Next was a norovirus outbreak in California, followed by salmonella in Minnesota. Other foodborne illnesses emerged among Chipotle customers in nine more states. Over the course of a few months, more than 500 customers were sick from contaminated food in Chipotle stores across the country. Sales dropped 30 percent during the outbreak, and several stores closed for an extended period of time. The company’s stock value dropped, and the company faced several lawsuits from customers who were sickened at one of the stores.
Most national fast-food restaurant chains control food quality by using a central source for ingredients, exposing the supply chain to fewer outside elements. Simply put, the more basic the food chain, the easier it is to control. To keep their fresh food promise, Chipotle sought to prepare as many foods as possible at the local stores. They also sourced ingredients locally wherever possible, creating relationships with hundreds of vendors. The complexity of their food sourcing, coupled with in-store food preparation, is most likely what caused the food contamination problem. There were no known specific negligent acts on the part of Chipotle; the problems occurred because offering fresh food on such a large scale creates a situation where quality control is difficult.
In most cases Chipotle did not know which foods were contaminated, making the fix even more challenging. In response to the crisis, they have implemented new controls to test for meat contamination and also changed some food-handling and preparation procedures. They’ve shifted much of their food preparation to centralized kitchens and started sourcing ingredients from fewer vendors, much like their fast-food competitors have done for years. To kick off their new standards, Chipotle closed all of their stores for an afternoon to train employees consistently on the new food-handling standards. While it seems the company is moving in the right direction, critics suggest that a company that claims to focus so much on food quality should have done a better job focusing on food safety.
- Why is it important for Chipotle to revise the company’s food-handling standards?
- Which controls would be more important to Chipotle: feedforward, concurrent, or feedback? Explain.
- How can Chipotle make sure that employees are following the new food handling standards?
- What are some measures of organizational performance that Chipotle management should use?
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