Chipotle’s Online Orders Surge, But Costs Hit Profit

As the coronavirus spread throughout the U.S many dine-in restaurants were closed and that was no different for Chipotle. Although, Chipotle turned to an alternative which was online orders. They are doing well with online orders but the costs for essential supplies to keep them running during this pandemic weighed in on them. Chipotle was also accused earlier this month with having made over 1,000 people with a foodborne virus. They agreed to pay $25 million and to improve the health system they have going on. Some ways they are improving is by allowing their workers to take paid sick days off as well as wellness checks for their workers. Chipotle emphasized they have enough cash to support them for more than a year.

In the marketing world, Chipotle will be affected because of the accusation of the foodborne virus. They have been working really hard to market their online ordering and in the middle of it all, they get accused of making people sick. This will push people away from them especially in a pandemic. At first glance, people will assume that Chipotle is spreading the coronavirus to its customers. Regardless if it is corona or not the people will begin to imply that Chipotle does not run a safe establishment where food is being produced. Things are bad enough with a COVID-19 to be adding another virus on top of it all. Although many people love Chipotle and as long as they are not spreading corona and show signs of improving their establishment environment once stay at home orders are lifted they should slowly rise back to where they were.

SOURCE: https://www.wsj.com/articles/chipotle-to-pay-25-million-to-resolve-foodborne-illness-charges-11587502092?mod=searchresults&page=1&pos=5