Chipotle, Brand Liabilities, and Brand Equity
While learning about brand equity and how it can affect an organization, I thought of the food safety problems Chipotle faced in 2015. In 2015, food from Chipotle caused 10 outbreaks nationwide of serious illness including E. Coli, Norovirus, and Salmonella. At least 500 people were affected, but no deaths were reported. This led to various lawsuits brought against Chipotle aiming to obtain compensation for medical bills, loss of wages, and other damages. Additionally, a suit was brought against the Simi Valley, California store for attempting to hide evidence of a Norovirus outbreak. These events all contributed to Chipotle's brand liabilities. "Brands can also incur brand liabilities due to product failure, lawsuits, or questionable business practices" (Best, pg 253). Check, check, and check. Chipotle's product failed by getting people sick, lawsuits were rolling in, and food safety and transparency (Simi Valley) practices were definitely questionable.