{"id":36764,"date":"2017-07-26T05:36:55","date_gmt":"2017-07-26T05:36:55","guid":{"rendered":"https:\/\/www.biphoo.com\/bipnews\/?p=36764"},"modified":"2017-07-26T05:36:55","modified_gmt":"2017-07-26T05:36:55","slug":"chipotle-links-sick-worker-latest-norovirus-outbreak","status":"publish","type":"post","link":"https:\/\/www.biphoo.com\/bipnews\/business\/chipotle-links-sick-worker-latest-norovirus-outbreak.html","title":{"rendered":"Chipotle links sick worker to latest Norovirus outbreak"},"content":{"rendered":"

Chipotle links sick worker to latest Norovirus outbreak<\/span><\/strong><\/span><\/h2>\n

Chipotle links sick worker to latest Norovirus outbreak: Chipotle Mexican Grill Inc (CMG.N) is retraining kitchen crews on food safety and enforcing a zero-tolerance policy for employees refusing to abide by new rules, after identifying a sick employee as the cause of a Norovirus outbreak that forced it to briefly close a restaurant in Virginia last week.<\/span><\/p>\n

“We believe someone was working while sick,” Chief Executive Steve Ells said on a conference call with analysts on Tuesday. Chipotle offers employees paid sick leave, but some workers told CNBC that they were forced by bosses to work while they were ill.<\/span><\/p>\n

The latest outbreak, along with a separate viral video showing rodents in a Dallas restaurant, pushed Chipotle shares down 13 percent last week. It was a big setback for the burrito chain, which is fighting to rebuild consumer trust after E. coli, Salmonella and Norovirus outbreaks in 2015 battered its sales and brand.<\/span><\/p>\n

The company’s stock had flirted around $750 two years ago before the sales-crushing food poisoning outbreaks sickened hundreds of customers in the United States.<\/span><\/p>\n

The shares got a slight boost on Tuesday, rising 1.6 percent to $354.25 in extended trade, after the company reported a quarterly profit that more than doubled on stronger sales, fewer giveaways and lower labor costs.<\/span><\/p>\n

Bill Marler, a Seattle attorney who represented nearly 100 people sickened in Chipotle’s 2015 outbreaks, said the company has made the right food safety moves at headquarters, but still has work ahead.<\/span><\/p>\n

“They have more to do to make the individual restaurants responsible,” Marler said. “That is where you have to get the work done.”<\/span><\/p>\n

Rebuilding customer confidence may prove even harder.<\/span><\/p>\n

Chipotle has fallen from No. 1 in Brand Keys’ annual loyalty index of fast-casual restaurants to No. 9 since the 2015 outbreaks, Robert Passikoff, president of the branding consultancy, said.<\/span><\/p>\n

“I always joked that they had a reserve table at No. 1,” said Passikoff, who added that Chipotle’s customers are no longer giving the formerly high-flying chain the benefit of the doubt.<\/span><\/p>\n

“I wouldn’t bet on them moving up the list,” Passikoff said.<\/span><\/p>\n

Boredom and Queso<\/span><\/p>\n

That is not lost on Mark Crumpacker, Chipotle’s marketing chief, who told analysts that clawing back customers will be “an ongoing challenge.”<\/span><\/p>\n

Chipotle is addressing the “boredom” cited by “lapsed defectors” who used to visit the chain frequently by considering their request that it add queso, a cheesy dip, to its small menu. It now plans to test the cheesy dip in 350 restaurants in Colorado and California.<\/span><\/p>\n

The company is also updating its app, adding its first-ever pickup window in Ohio and improving the speed of food-preparation areas for takeout orders.<\/span><\/p>\n

Chipotle’s second-quarter profit rose more than 160 percent to $66.7 million, or $2.32 per diluted share, beating analysts’ average estimate of $2.18, according to Thomson Reuters I\/B\/E\/S.<\/span><\/p>\n

Sales at restaurants open at least 13 months rose 8.1 percent, but less than the 9.5 percent gain expected by analysts polled by Consensus Metrix.<\/span><\/p>\n

Executives said the latest Norovirus outbreak dented sales by about 5.5 percent over the last several days.<\/span><\/p>\n

Source: http:\/\/www.reuters.com\/article\/us-chipotle-results-idUSKBN1AA2MS<\/span><\/p>\n

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