In what is becoming a common refrain in the Food Institute offices, it appears Chipotle Mexican Grill just can't catch a break.
As Jennette expertly opined on last week, Chipotle is contending with a new norovirus outbreak that appears to have stemmed from a location in Sterling, VA. The outbreak was reminiscent of the 2015 outbreak at one of the chain's Boston locations, and the news spurred investors to once again take a negative view of the company's future outlook.
Following the blog post from Jennette, the Loudoun County Health Department confirmed that a customer tested positive for norovirus after eating at the Sterling location. The department received reports of 60 illnesses from customers who ate at the location, reported Yakima Herald-Republic (July 20).
Now, the company is facing a class action lawsuit on behalf of shareholders who seek damages for alleged securities violations. The lawsuit, filed by Bronstein, Gewirtz & Grossman LLC , is linked to the company's food safety issues and alleges that Chipotle made false and misleading statements after the food poisoning events in 2015, and made inadequate improvements to protect workers and consumers as well. The suit includes both the Boston and Sterling norovirus outbreaks.
To make matters worse, a class action lawsuit was filed against Chipotle alleging breach of contract, breach of duty and negligence. The plaintiff claims the chain failed to protect customers' personal information after hackers were able to access the restaurant chain's point-of-sale system. The case alleges that credit and debit card information was stolen, reported Legal Newsline (July 19).
It's worth noting that Chipotle has managed to bounce back before. Although nowhere near the glory of their heyday before the 2015 food safety issues, Chipotle was working on a number of initiatives to improve their bottom line, including new menu items, a loyalty program and a number of promotional deals. It remains to be seen what will happen with the new lawsuits, but you can be sure we will keep you up-to-date with the latest developments.
Italy will not ratify the EU's free trade agreement with Canada because it does not ensure sufficient protection for the country's specialty foods, according to the country's agriculture minister. The Comprehensive Economic and Trade Agreement (CETA) will abolish some 98% of customs duties and allow the EU to export more cheese and wine and Canada more pork and beef in quotas that expand over the next six years, reported
Country of Origin Labeling (COOL) will not be reinstated in the U.S., according to a judgment from the U.S. District Court Eastern District of Washington issued June 5, despite the court's acknowledgement that the removal of the labeling law caused red meat producers in the U.S. harm.read more
Chris focuses on fresh, canned and frozen fruit and fresh and dried vegetables for the Food Institute Report. In addition, he assists in compiling data for various Food Institute publications throughout the year. He is a proud Rutgers University alumnus with a degree in English, and has a background in web writing for a variety of industries, including legal, foodservice and small-to-medium sized businesses. In his downtime you can find him watching New York Yankees baseball, hiking, enjoying live music and spending time with his dog Kaiden. He invites you to contact him via email at firstname.lastname@example.org to talk about anything food-related.
There are no comments, yet. Why don't you add one?
10 Mountainview Road
Upper Saddle River, NJ 07458
Food Institute reps are available to answer your questions
BECOME A MEMBER
For close to 90 years, The Food Institute has been the best "single source" for food industry executives, delivering actionable information daily via email updates, weekly through The Food Institute Report and via a comprehensive web research library. Our information gathering method is not just a "keyword search."