Franchise News

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.

Franchise News

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.
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About the Author
Nick Powills, CFE, founded No Limit Agency in 2008 and serves as Chief Brand Strategist for the Chicago-based firm. No Limit is a full-service communications agency that establishes and elevates brands by bridging Public Relations, Social Media, Marketing, Advertising, Digital, and a lot of creativity, to best strategize well-rounded and successful campaigns for 50+ global franchise brands. By presenting visionary ideas and building real relationships, No Limit is able to create effective media branding strategies to help companies grow. Nick currently leads a staff of writers, media strategists, designers, social media experts and digital producers in an office think-tank where brands are humanized for strong, compelling media stories. Prior to starting No Limit at the age of 27, Nick spent four years working at a franchise PR agency where he mastered the art of building rapport with media outlets and creating newsworthy pitches for earned media placements. He holds a Bachelor of Journalism from Drake University in Iowa.