This was a huge setback for Chipotle and its loyal customers. Many did not want to purchase its products in fear that they would become infected with the virus. These turn of events caused a 15% decrease in Chipotle’s fourth quarter and the company's stock price was down 42%. Despite these challenges Chipotle had gained so much consumer loyalty that it was able to play catch up in an attempt to save the brands equity. In an interview with Campaign, Darren Tristano, president of Technomic, food industry consultancy, cited that "Our research indicates that in six months, most consumers forget about these food-poisoning issues that come up," he said. This allowed Chipotle to successfully overcome this threat to its brand equity. According to Jonathan Bernstein, a crisis PR expert, says that “Chipotle has built up so much good will with its branding efforts that it can withstand this major PR setback” The reason Chipotle could overcome this obstacle so well was because of the amount of goodwill it had produced before the incident with its customers. Customer loyalty plays a huge role in whether or not the company is able to get past outbreaks of illnesses in its
This was a huge setback for Chipotle and its loyal customers. Many did not want to purchase its products in fear that they would become infected with the virus. These turn of events caused a 15% decrease in Chipotle’s fourth quarter and the company's stock price was down 42%. Despite these challenges Chipotle had gained so much consumer loyalty that it was able to play catch up in an attempt to save the brands equity. In an interview with Campaign, Darren Tristano, president of Technomic, food industry consultancy, cited that "Our research indicates that in six months, most consumers forget about these food-poisoning issues that come up," he said. This allowed Chipotle to successfully overcome this threat to its brand equity. According to Jonathan Bernstein, a crisis PR expert, says that “Chipotle has built up so much good will with its branding efforts that it can withstand this major PR setback” The reason Chipotle could overcome this obstacle so well was because of the amount of goodwill it had produced before the incident with its customers. Customer loyalty plays a huge role in whether or not the company is able to get past outbreaks of illnesses in its