#405 rise and fall of Chipotle: From $50B to disappointment?
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#405 rise and fall of Chipotle: From $50B to disappointment?
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Michael Girdley that chronicles the dramatic rise, fall, and subsequent rebound of the fast-casual restaurant chain, Chipotle. The video first explains how Chipotle was founded in 1993 by Steve Ell, who successfully applied fine-dining preparation techniques to a fast-food setting, eventually securing a major investment from McDonald's that fuelled rapid expansion and created a cult-like following due to its fresh food focus. However, this commitment to freshness led to a disastrous series of foodborne illness outbreaks starting in 2015, causing the brand's reputation and sales to plummet. The narrative then shifts to the 2018 hiring of new CEO Brian Nichols, who implemented a "Taco Bell playbook" of digitisation and systematisation—including online ordering and enhanced safety measures—which inadvertently prepared the chain for the COVID-19 pandemic and led to a temporary financial recovery. The source concludes by noting that Nichols's focus on profitability and efficiency ultimately led to skimpy portions and poor customer service, resulting in terrible customer reviews and a new decline in sales, suggesting that the initial turnaround strategy ultimately