Chipotle Executive Summary

7 Effective Ways to recover Chipotle’s food safety lapse
Chipotle has indeed paid the ultimate price for its food safety lapses. The management has made necessary steps to ensure they address identified health lapses. The costs that are expected to be associated with this effort will without any doubt pressure the earnings for the next few quarters (Chipotle Mexican Grill, Inc.: 2015). In the long run, the company will have the capability to bounce back. Other companies including McDonald’s and Jack in the Box have had to deal with more food-related severe incidents, and they have successfully bounced back. Likewise, Chipotle also has an opportunity also to amend its systems (Chipotle Mexican Grill, Inc.: 2015). Thus, following is the 7 different

The company needs to concentrate on developing advertising and promotion campaigns for its proposed new restaurants: Chipotle has enjoyed a rapid growth in the recent years since it went public. In 2006 reports indicate the company had approximately 510 restaurants, but has quadrupled now. As a result, the firm has enjoyed measurable annual revenue and growth (Chipotle Mexican Grill, Inc.: 2015). In 2015 the company suffered food safety issues which affected the company revenues but was still able to post 10% revenue and 7% in growth (Chipotle Mexican Grill, Inc.: 2015). Therefore, despite the food issues setback, the company has immense potential to continue expanding into other states (Chipotle Mexican Grill, Inc.: 2015).
2. Buy back and re-advertised stocks in the market. Moreover, the company enjoys an excellent financial strength. Thus the company can continue doing business under the less-than-favourable conditions without having to pay substantial interests to the creditors. To further ensure the company financial stability, it is critical for the management to take advantage of the low price and also give a lit to the current earnings per unit

Empower the small-scale suppliers: Moreover, many local suppliers do not have enough resources to track the latest food safety concerns efficiently. Therefore, the Chipotle management needs to devise ways that it can exploit to ensure the company former glory of its high quality and excellent produce returns. To ensure it empowers its small-scale suppliers, the company can provide it offers classes to all the farmers so that they can deliver the right quality products needed.
5. Re-train the employees: For a company to have a great comeback there is the need for all the employees to be retrained and ensure they have the right skills to provide foods that are appropriately handled. Due to the complexity of the supply chain, it becomes very difficult to monitor the quality standards and also the safety of the produce. Thus, employees will need solid training for all necessary procedure. Most importantly, retail stores need to avoid cross-contamination in the kitchen; it is proposed for all the foods to be prepared in different workstations.
6. Alternative: If the management sorts to continue getting its products from the small-scale farmers, then the company needs to organize a possible DNA testing where it can efficiently identify any harmful bacteria before they enter the supply