Chipotle temporary shutdown: UNT marketing expert discusses how risky move might help company

Monday, February 1, 2016 - 20:26

On Feb. 8 (Monday), Chipotle restaurant chains will temporarily close the doors of their approximately 1,900 locations nationwide for a food safety meeting. The move, according to media reports, comes after a string of outbreaks of foodborne illnesses that caused customers in several states to become ill, sending sales and stocks plummeting. Stores will reopen 3 p.m. local time.

University of North Texas marketing professor David Strutton can comment on how what he describes as a "risky" move might help Chipotle win back the loyalty of its customers.

Contact Strutton at David.Strutton@unt.edu or 940-368-5696 (cell), or schedule an interview time with Strutton by contacting Monique Bird at Monique.Bird@unt.edu or 940-369-7782.

 

From a marketing viewpoint, how might the temporary shutdown help Chipotle?

"The shutdown is actually risky, but the company's leadership consciously decided they had no choice but to engage in a high risk, but potentially high return public relations move," Strutton said. "For the company, the decision sends a powerful signal to the public marketplace that Chipotle is taking these problems seriously and that these problems will never be repeated."

Could there be negative consequences from such an action?

"The U.S. media is, and will be, picking up and promoting the temporary shutdown," he said. "That renewed buzz will reintroduce the problems to some consumers who had essentially forgotten about or had forgiven the mistake. It may also introduce the problem to people who had never heard about it."

Will these meetings serve as a new beginning for the company?

"These meetings will absolutely serve as a point from which the company can hit the restart button," said Strutton. "It's the beginning of Chipotle's new beginning."

However, he added that Chipotle may struggle to fully reclaim its formerly eminent market position.

"The Chipotle brand differentiation is based on wholeness, healthiness and conscious environmentalism – food that was worth paying more for," he continued. "The competition in this sector is too intense, and the brand has already lost its edge as the new, fresher and healthier kid on the block."

What else marketing-wise might Chipotle do to win back lost patrons?

"Chipotle has done a good job of taking the steps needed to win back customer trust: things like take responsibility, tell the truth, and take remedial action in the supply chain and in-house food preparation," said Strutton. "Importantly, Chipotle has made this part of its ongoing promotional messaging. Mix in the passing of time and "baby come back" incentives, and some customers will surely return."

Can other companies learn from Chipotle's troubles?

"If your firm promises to serve higher quality food than its competitors, then you have to deliver, because everyone – especially the media – is watching to ensure that promise is kept," Strutton said.

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