Chipotle Mexican Grill Inc. agreed to pay a $25 million fine to resolve criminal charges related to the food safety problems that sickened more than 1,000 people from 2015 to 2018.
According to the U.S. Department of Justice, “A criminal information filed [April 21] in federal court in Los Angeles charges Chipotle with adulterating food in violation of the Federal Food, Drug, and Cosmetic Act. The company agreed to a three-year deferred prosecution agreement (DPA) that will allow it to avoid conviction if it complies with an improved food safety program. Chipotle also agreed to pay the $25 million criminal fine, the largest ever in a food safety case, as part of the DPA.”
Chipotle said in the agreement that it failed to comply with company food safety policies that sent home sick employees, which led to foodborne illness outbreaks in Los Angeles, Boston, Virginia and Ohio from 2015 to 2018.
“This settlement represents an acknowledgment of how seriously Chipotle takes food safety every day and is an opportunity to definitively turn the page on past events and focus on serving our customers real food made with real ingredients that they can enjoy with confidence,” Chipotle CEO Brian Niccol said in a statement.
Like other fast-casual restaurants, Chipotle was forced to close its dining rooms in mid-March during the government shut-downs and focus on take out and delivery. Digital sales grew in the first quarter by 80 percent.
Revenue increased in Q1 by 7.8 percent year over year, but comparable restaurant sales dropped 16 percent in March due to the pandemic.
“Investing in digital over the last several years has allowed us to quickly pivot our business with Q1 digital sales reaching our highest ever quarterly level of $372 million,” Niccol said. “Our strong brand, business model and balance sheet give us the confidence to not only weather this downturn but continue to judiciously invest in key areas so that when we come out the other side, we will emerge even stronger.”
Chipotle Mexican Grill Inc. agreed to pay a $25 million fine to resolve criminal charges related to the food safety problems that sickened more than 1,000 people from 2015 to 2018.
According to the U.S. Department of Justice, “A criminal information filed [April 21] in federal court in Los Angeles charges Chipotle with adulterating food in violation of the Federal Food, Drug, and Cosmetic Act. The company agreed to a three-year deferred prosecution agreement (DPA) that will allow it to avoid conviction if it complies with an improved food safety program. Chipotle also agreed to pay the $25 million criminal fine, the largest ever in a food safety case, as part of the DPA.”
Chipotle said in the agreement that it failed to comply with company food safety policies that sent home sick employees, which led to foodborne illness outbreaks in Los Angeles, Boston, Virginia and Ohio from 2015 to 2018.
“This settlement represents an acknowledgment of how seriously Chipotle takes food safety every day and is an opportunity to definitively turn the page on past events and focus on serving our customers real food made with real ingredients that they can enjoy with confidence,” Chipotle CEO Brian Niccol said in a statement.
Like other fast-casual restaurants, Chipotle was forced to close its dining rooms in mid-March during the government shut-downs and focus on take out and delivery. Digital sales grew in the first quarter by 80 percent.
Revenue increased in Q1 by 7.8 percent year over year, but comparable restaurant sales dropped 16 percent in March due to the pandemic.
“Investing in digital over the last several years has allowed us to quickly pivot our business with Q1 digital sales reaching our highest ever quarterly level of $372 million,” Niccol said. “Our strong brand, business model and balance sheet give us the confidence to not only weather this downturn but continue to judiciously invest in key areas so that when we come out the other side, we will emerge even stronger.”
Greg Johnson is Director of Media Development for Blue Book Services
