Fast Casual: Chipotle’s Stocks Drop After Ells Admits ‘Nervous’ 2017 Outlook
Fast Casual: Chipotle’s Stocks Drop After Ells Admits ‘Nervous’ 2017 Outlook

Chipotle founder and co-CEO unhappy with half the burrito chain’s restaurants.

At a Barclays conference on Tuesday, Steve Ells, founder and co-CEO of Chipotle announced that he’s not happy with the performance of at least half of the burrito chain’s restaurants, going so far as to score 50 percent of the company’s 2,000 restaurants at a “C, D or F” level.

“We took our eye off the ball on customer service,” said Ells.

Due to some major food safety issues the company has experienced over the past couple years, the burrito chain has tried to implement around 80 new procedures in one year to improve the quality and safety of the food. In typical years past, the chain had only tried to implement around eight new procedures annually.

Ells says all the new procedures decreased the satisfaction of employees, making their day to day more challenging. The result? Dirty soda filling stations, slow lines and untidy dining rooms.

Since Ells comments, Chipotle stock dropped seven percent.

Read the full article here.

 

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