Case Study - Chipotle Mexican Grill

To illustrate the practical application and utility of our food safety benchmark system, we'll examine a real-world scenario involving Chipotle Mexican Grill. This case study demonstrates how our metrics can provide valuable insights into a restaurant chain's food safety performance over time and in comparison to industry standards.

Case Study: Chipotle Mexican Grill (2015-2017)

Background:

Chipotle faced significant food safety challenges between 2015 and 2017, including multiple outbreaks of foodborne illnesses. This case study examines how our benchmarking system reflected these issues and the subsequent efforts to improve food safety.

Application of 'Reports per 100 Stores' Benchmarks:

• Starting as early as 2012, all the way up to the first major outbreak in 2015, Chipotle was consistently averaging 10 to 20x our IWP Benchmark Index. This was a significant red flag and a clear indicator of systemic problems.

• The score had a peak in August of 2015, coinciding with the Simi Valley Outbreak. This outbreak (and most of their subsequent outbreaks) were detected via our crowdsourcing outbreak real time alert Chipotle's score was significantly above the industry index, indicating a higher than average number of food safety incidents.

• By 2017, although improved, the score remained near 10x above the index, suggesting ongoing challenges.

• Another peak in July 2017 coincides with the Sterling, Virginia, Norovirus outbreak.

Insights:

• Our system identified clear warning signs over two years prior to the series of major outbreaks. This early detection provided a critical window for potential intervention, highlighting how data-driven benchmarking can empower companies to address food safety risks before they escalate into crises

• The gradual improvement in scores by 2017 may have reflected some of Chipotle's efforts to enhance food safety practices, while also indicating that challenges persisted.

• The case demonstrates how our system can track a company's food safety performance over time, reflecting both crises and recovery efforts.

As seen in Business Insider: https://www.businessinsider.com/chipotles-food-safety-problems-are-persisting-2017-11

Additional Context:

• The 2015 & subsequent outbreaks, including E. coli and norovirus, led to a significant drop in Chipotle's sales and stock price.

• Chipotle lost over $10 billion dollars in market capitalization from the start of their food safety issues to their low.

• The founder was forced to step down as CEO.

• Chipotle were forced to pay a $25 million criminal fine and institute a comprehensive food safety program to resolve criminal charges that it adulterated food that sickened more than 1,100 people across the United States from 2015 to 2018.

• This case highlights the long-term impact of food safety issues on a brand and the importance of consistent, effective food safety practices.

Implications for the Industry:

• Chipotle's experience emphasizes the critical importance of proactive food safety measures.

• It demonstrates how our benchmark system can be used not only to predict systemic issues & identify current issues, but also to track the effectiveness of remediation efforts over time.

• The case highlights the value of comparing a brand's performance against our benchmark to provide clear indications of food safety performance.

This real-world example illustrates how our food safety benchmark system can provide crucial insights for restaurant chains, investors, and consumers. By offering a standardized way to measure and compare food safety performance, our system helps stakeholders make informed decisions and promotes accountability in the industry.