In 2015, Chipotle encountered significant foodborne illness outbreaks that affected many guests and prompted the closure of numerous locations. This crisis illustrated serious vulnerabilities in maintaining supply chains at scale while striving for high-integrity sourcing. The fast-casual sector faced a watershed moment as Chipotle's commitment to quality became problematic, leading to a sharp decline in stock prices and substantial losses. The rapid expansion of nearly 200 new locations each year added pressure to their supply chain, revealing the urgent need for improved transparency and safety measures.
Chipotle's food safety crisis in 2015 demonstrated that the commitment to quality can create vulnerabilities in maintaining high-integrity supply chains at scale.
The strain of rapid expansion forced Chipotle to confront the limitations of its local sourcing model, ultimately revealing the critical need for transparency and safety.
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