July 18, 2016

Will Chipotle Recover?

Will Chipotle Recover? It Could Be Years, Says Morgan Stanley
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2 comments:

Anonymous said...

It took Jack in the Box over three years to recover from e-coli. They handled it right. Chipolte not so well.

Richard Adams said...

There are some big differences, JACK was not a high profile, national brand when they had their problems. And, I don't believe they were a publicly held company. But the bigger difference might be that JACK never had much of a reputation for quality, even among native Southern Californians who grew up with the brand. Prior to that time they never claimed to have "Food With Integrity". In fact, from 1968 to 1985 JACK was owned by Ralston-Purina generating endless jokes about a dog food manufacturer running a restaurant chain.

Twenty years of boasting about the integrity of their food may make may make Chipotle's problems harder to overcome.