Preview

Chipotle Supply Chain Case Study

Good Essays
Open Document
Open Document
456 Words
Grammar
Grammar
Plagiarism
Plagiarism
Writing
Writing
Score
Score
Chipotle Supply Chain Case Study
healthy food staffs. Through its supply, it has won many consumers as well as investors. However, the current food supply has resulted in infection of individuals. An infection known as E.coli has cropped. The disease is associated to food staffs of Chipotle. The data given by the Centre for Disease Control indicates that fifty-two individuals in nine states have been infected with E.coli (Sander, 2011).

Conversely, it is not easy to tell the source of the infection. Chipotle deals with a larger chain of supply, therefore, it makes it tougher to detect where the dieses is coming from. Chipotle has about one thousand nine hundred foot outlets. The more stores may result in food shortage and improper food safety.

Chipotle is experiencing a
…show more content…
The company stopped a supplier of pork. Chipotle had to withdraw almost a third of carnitas from all the restaurants. Several months passed while looking for new potential pork suppliers. The sales rates reduce since the supply was stopped and Chipotle could not make profits (Paiz, Anderson, Barone, Bollinger, & Calderon, 2011).

The small scale food suppliers did not take food safety measures into account. These food vendors did not have the infrastructure to maintain the supply of food. The food vendors were not in a position to explain the process they used to secure food. Chipotle had to cut links with food suppliers. Chipotle had run into significant losses; however, chipotle developed plans of opening its supply to recap the loss that it has suffered.

Concisely, supply issues can cause damage to companies. A company running food staff business must be very couscous about the suppliers. Before processing the goods, there should be a proper food test to help in identifying any poison in the food. Additionally, the food company should encourage the government health official to carry out standardization tests for food

You May Also Find These Documents Helpful

  • Powerful Essays

    APPENDIX-A BALANCE SHEET ANALYSIS | | | Chipotle | 2011 | 2010 | Total liabilities | 381,082 | 310,732 | Total Shareholder 's Equity | 1,044,226 | 810,873 | Debt ratio | 27.70% | 26.73% |…

    • 1971 Words
    • 8 Pages
    Powerful Essays
  • Good Essays

    Chipotle’s sales have declined more than 30 percent because of the E. coli outbreaks that were spread throughout nine states. Its stock price had also declined hundreds of dollars in December. As a result of multiple…

    • 390 Words
    • 2 Pages
    Good Essays
  • Good Essays

    2. In the articles “Crisis At Chipotle” and “How To Handle A Crisis” by Kristin Lewis and Adee Braun proves that advertising can hurt the company and help the company. One quote from “Crisis At Chipotle” proves that advertising the crisis that occurs is a bad thing because the customers will become very mad. One quote to prove this is “United concated Carroll and offered to pay for the quitar if he would take the video down. But this time, he said no.…

    • 230 Words
    • 1 Page
    Good Essays
  • Satisfactory Essays

    The history of Chipotle plays a huge part in the fast-casual industry. Its Founder Steve Ells originally worked at the Stars restaurant in San Francisco. He left his job to pursue his dream of opening a fine-dining restaurant but didn’t have the funds to do so. He opened the first Chipotle in 1993 in order to help him fund his dream restaurant. Before he knew it Chipotle took off and became a leader in the fast-casual industry. He started with an $85,000 loan from his father and by 2001 McDonald’s was Chipotle’s largest investor. In 2006 Chipotle went public and McDonalds and Chipotle went their separate ways. Without McDonalds Chipotle might not be where it is today. Its early investment gave Chipotle the capital it needed to grow and with…

    • 195 Words
    • 1 Page
    Satisfactory Essays
  • Satisfactory Essays

    Recently there has been a steep decline in revenue for fast food restaurant, Chipotle Mexican Grill after the announcement of an E. coli outbreak in late October. By the end of November 2015, the company’s customer satisfaction, sales and stock had fell dramatically. This outbreak of illness due to E. coli associated with Chipotle restaurants is an ongoing crisis causing customers to boycott the fast food chain.…

    • 67 Words
    • 1 Page
    Satisfactory Essays
  • Good Essays

    Founded by Steve Ellis in 1993, his main focus was to transform "fast food" to an experience more similar to fine dining. Taking inspiration from features commonly found in fine-dining, he wanted the strategy for Chipotle Mexican Grill to focus on the following five elements:…

    • 706 Words
    • 3 Pages
    Good Essays
  • Good Essays

    The article talks about Chipotle’s recent norovirus and E.Coli outbreak and how the public is responding to it. The tex mex company was served a federal grand subpoena in connection with a criminal investigation tied to the incident in Simi Valley. Chipotle has been subpoenaed, by the Securities and Exchange Commission, to produce legal documents related to the “isolated” outbreak, Although uncommon the FDA and prosecutors are working together to try to bring increased attention and punishment to companies found in outbreak violations.During the investigation E. Coli outbreaks raged through Chipotle stores across America. In total 57 consumers in twelve states were affected were hit with some strains of norovirus. Due to the investigations and outbreaks Chipotle…

    • 502 Words
    • 3 Pages
    Good Essays
  • Good Essays

    Chipotle Case Study

    • 427 Words
    • 2 Pages

    Chipotle operates under a single business strategy in which it generated at least 95% of revenue from corporate owed restaurant. The advantage of having a single business strategy is that Chipotle focused their operation on one idea to expand their opportunity and growth. They focus their growth on Chipotle Mexican Grill domestically and internationally. Chipotle devoted their effort to one concept allowed them to create a more comprehensive plan. All their departments are working towards the same goals and objectives which can lead to better management.…

    • 427 Words
    • 2 Pages
    Good Essays
  • Satisfactory Essays

    Chipotle Mexican Grill restaurant received a lawsuit against them because the false advertising is violating “Don’t lie” in the KTER. Lying has a negative result on human flourishing. Because it diminishes trust between human beings, may become a habit. Also leads people to make decisions on false information. With this violation many are affected. In chipotle all the diners were affected. The diners flourishing was damaged because they possibly made a decision they would not usually make with the lie told, they doubt their own ability to assess the truth and to make decisions. Impacted their relationships and their choices.…

    • 100 Words
    • 1 Page
    Satisfactory Essays
  • Satisfactory Essays

    Chipotle Swot Analysis

    • 205 Words
    • 1 Page

    Chipotle’s mission is to change the way people look at the fast food. They use fresh and high-quality raw ingredients and classic cooking methods. Chipotle’s restaurants have also friendly environment and the workers who are happy to talk with their customers while serving them. All of this is done very quickly similar to the fast food. However, the experience is completely different compared to “fast-food experience”. They serve high-quality food that is made very carefully but an order is ready in seconds and despite this, they still charge reasonable prices from their customers. In addition, for people who doesn’t want to stand in line, Chipotle accepts online orders through the phone application and they also provide catering, except Chipotle…

    • 205 Words
    • 1 Page
    Satisfactory Essays
  • Good Essays

    In late 2015, two outbreaks appeared in America. In the first, larger outbreak, 55 people infected with Escherichia coli O26 (STEC O26). 55 people are from 11states. 21 ill people were hospitalized. In the second outbreak, 5 people from 2 states infected with STEC O26 and 1 people was hospitalized (CDC, 2016). FDA along with CDC and local public health official investigated two outbreaks and found that most of the victims ate Chipotle Mexican Grill before. They think two outbreaks may relate to Chipotle Mexican Grill. Chipotle Mexican Grill voluntary closed 43 restaurants located in Washington and Oregon in early November (FDA,2016).…

    • 660 Words
    • 3 Pages
    Good Essays
  • Good Essays

    In the 90's it was very hard to find a fast pace food environment that could actually serve quality food, that’s where Chipotle began to stand out. Bringing authentic and fresh Mexican ingredients is one of the many things that makes chipotle stand out to their competition. Chipotle meats are fresh, never frozen, left over night to marinate and grilled fresh every hour .They raise their cattle in humane conditions which help the quality of their meat, from my experience at dinging in this restaurant it always carries a peculiar taste as compared to other restaurants who have added hormones to enhance flavors. You can taste the unadulterated flavors in their vegetables, salsas, and guacamole versus the genetically modified condiments provided at other establishments. Chipotle is one of the few places that thrive on quality and quantity in a fast food environment yet still guarantying fresh flavorful organic ingredients. For those who are now a part of the health conscious wave this is without a doubt the best option for not only them but for…

    • 669 Words
    • 3 Pages
    Good Essays
  • Good Essays

    Chipotle Mexican Grill

    • 509 Words
    • 3 Pages

    Chipotle Mexican Grill is an example of a relatively recent entrant in the national fast-food space that has provided exceptional quality to customers. Chipotle started as a one-shop burrito restaurant in Denver in 1993 that today is a publicly traded company with $1.3 billion in revenues from 1,000 restaurants. The company offers fast-casual, fresh Mexican food restaurants in the United States, UK, and Canada. In 2010 it had revenues of $1.74 billion.…

    • 509 Words
    • 3 Pages
    Good Essays
  • Good Essays

    The Crisis At Chipotle

    • 350 Words
    • 2 Pages

    In big name businesses the fame and cash rolling in non-stop can’t always be good. Everybody makes mistakes just some are broadcasted bigger than others. The way that you take care of your mistakes reflects how you are asa company or person. This shows other people if they can trust you of this ever happens again and hopefully it won't.…

    • 350 Words
    • 2 Pages
    Good Essays
  • Good Essays

    In conclusion, Chipotle should continue on its strategic plan of international growth by entering into China. After having invested in Europe, Chipotle has accumulated experience and gained organizational learning over time, and can now increase its resource commitment to foreign markets. With one of the largest economies in the world, China has only increasing economic growth and purchasing power. Expanding into China would be a worthwhile investment because Chipotle would have the first-mover’s advantage in the Chinese market, and China’s large population and growth potential offers Chipotle room for success in market spaces that are already saturated in the U.S.…

    • 588 Words
    • 3 Pages
    Good Essays