Secondary Research Results
Background Mexican Fast Food Category Food with Integrity Target a young audience Disease outbreak crisis started in Oct. 2015 E. coli, Norovirus, Salmonella 11 different states
Chipotle’s Reaction Nationwide employee meeting High resolution DNA-based testing Improved the food preparation process Free burrito promotion $10 Million Local Growers Support Initiative
Core Challenge
Before Facing the E. coli, salmonella, norovirus outbreaks that occurred in Chipotle restaurants during the fourth quarter of 2015.
After Chipotle did not sufficiently communicate to mass audiences the steps they were taking to improve restaurants after the outbreaks.
Primary Research Results 1. People are still going to Chipotle and eating Chipotle food after the outbreaks. 2. People primarily followed the news regarding the outbreaks through social media and word of mouth. 3. People still have a positive perception of Chipotle after the outbreaks. 4. People are most likely to go to Chipotle with their friends. 5. People are not completely aware of the details of the outbreaks.
People are Still Going to Chipotle
Focus Group “I still eat Chipotle, just as much as I did before, it doesn’t really affect me that much.”
Interviews “The outbreak did not affect me that much, because I still go to Chipotle all the time. I feel like if I knew someone that got E. Coli from Chipotle it would have affected me, but since I do not know anyone that got it, it did not hit close enough to home for me to stop eating Chipotle.” “The outbreaks aren’t going to stop me from eating there, I tried to stop and I couldn’t.”
Survey 69.6% of respondents have been to Chipotle after the first outbreak.
People Primarily Followed The News Regarding the Outbreaks Through Social Media and Word of Mouth
Interview “I know when Chipotle shut down the stores for a whole day they had on a lot of social media coverage.�
Survey Through Which Outlets Did You Hear About The Outbreaks? 87% - Social Media 95.7% - Word of Mouth
People Still Have a Positive Perception of Chipotle
Focus Group “From the impressions I’ve gotten from friends or from people I know, it’s almost as though Chipotle can do no wrong. The people I’ve talked to, they care, but not enough to stop eating Chipotle.” “It’s a shame that happened, but it doesn’t detract from the fact that they still are healthier than any other fast food.”
Interviews “They are still the same Chipotle. They just had an outbreak, and now they are trying to recover from it.”
“Their brand image has not changed in a negative way.”
Survey All respondents except one ranked Chipotle’s service as equal or above 4 on a scale of 1 to 7.
People Are Most Likely to Go To Chipotle with Their Friends
Focus Group “My friends and I still go to Chipotle.”
“I would go if people were going.”
Interviews “The more I hung out with people that like Chipotle and started eating it a lot, the more I ate it and the more I liked it...If I go [out to eat] with my friends they prefer Chipotle so that is where we go. So it kind of just depends on who I’m with instead of what I’m hungry for.”
Survey 87% of respondents said they are most likely to go to Chipotle with their friends.
People Are Not Completely Aware of the Details of the Outbreaks
Focus Group “Was it E. coli or was it something else? I don’t really know.”
“I’m not as knowledgeable about it as I should be.”
Interview “I do not know a whole lot, because I have been eating Chipotle non-stop since.” “All I really know is that there was an E. Coli outbreak.”
“What I do know is Chipotle shut down all their stores for a week or two.”
Survey Only 17% of respondents aware of Salmonella outbreak. Only 21.7% of respondents aware of Norovirus outbreak.
Survey Hypotheses
Hypothesis 1 People are more inclined to go to Chipotle after the outbreaks if their friends are going with them. Positive, statistically significant, moderate
Hypothesis 2 The more positive the perception a person has of Chipotle as a brand before the outbreaks, the more likely they are to go back to eat at Chipotle after the outbreaks. Positive, statistically significant, moderate
Hypothesis 3 The less health-conscious a person is, the more likely they are to eat at Chipotle after the outbreaks. Negative, statistically insignificant, and weak
Hypothesis 4 The less a person knows about the outbreaks that happened in Chipotle restaurants, the more likely they are to eat at Chipotle after the outbreaks. Positive, statistically insignificant, and moderate
Recommendations
Customize Your Guac! Chipotle lovers will submit a unique guacamole recipe on the Chipotle website Winner’s recipe sold in the store for a limited amount of time, in addition to Chipotle’s current guacamole recipe
#BurritoBuddy - National Friend’s Day Launch a social media challenge that will start on National Best Friends’ Day June 8th Challenge will be to go to Chipotle with friends and post a picture using the hashtag Those who post will receive promotion
Loyalty Program Chipotle Rewards Located through an app
Social Media Campaign Focus on where the entire food preparation process Farm to table Highlighting the farms and farmers that Chipotle restaurants partner with
Conclusion Improve communication to general public Social media & traditional media
Improve transparency Improve corporate social responsibility Strengthen brand loyalty
Questions?