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  • May 16, 2016
  • Article
  • Harvard Business School Working Knowledge

Food Safety Economics: The Cost of a Sick Customer

By: Dina Gerdeman and John A. Quelch
  • Format:Electronic
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Abstract

Chipotle Mexican Grill’s ongoing struggle to win customers back months after a contaminated food crisis highlights the challenges companies face with keeping food safe.

Chipotle has seen its shares tumble and recently reported its first-ever quarterly loss after the incident, which began in October when more than 50 people in 11 states were sickened by an initial E. coli outbreak.

Keywords

Food Safety; Organic Food; Supply Chain Management; Globalization Of Food Business; Mérieux NutriSciences: Marketing Food Safety Testing; Food Safety Modernization Act 2011; Plant-Based Agribusiness; Transition; Economic Systems; Food; Health; Supply and Industry; Logistics; Practice; Problems and Challenges; Quality; Safety; Business Strategy; Corporate Strategy; Customization and Personalization; Agriculture and Agribusiness Industry; Consumer Products Industry; Food and Beverage Industry; Insurance Industry; Public Administration Industry; Public Relations Industry; Retail Industry; Service Industry; Mexico; North America; United States; Canada

Citation

Gerdeman, Dina, and John A. Quelch. "Food Safety Economics: The Cost of a Sick Customer." Harvard Business School Working Knowledge (May 16, 2016).
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About The Author

John A. Quelch

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