In early 2014, Chipotle Mexican Grill announced that it would stop using genetically modified ingredients (GMOs) in its restaurants. Many observers applauded this move. However, critics of the fast-food chain cited a lack of evidence to support its anti-GMO stance. They suspected that Chipotle’s anti-GMO claim was simply a ploy to distract consumers from a larger issue: the company’s risky sanitation practices. Chipotle’s anti-GMO policies may have won the burrito chain some health-conscious customers, but at the same time customers were becoming sick after eating at some Chipotle locations, calling into question the firm’s food handling and safety practices.Steve Ells, founder and co-CEO of Chipotle, said the GMO decision was “another step toward the visions we have of changing the way people think about and eat fast food. Just because food is served fast doesn’t mean it has to be made with cheap raw ingredients, highly processed with preservatives and fillers and stabilizers and artificial colors and flavors.” However, ridding Chipotle’s supply chain of genetically altered components proved difficult. The chain discovered GMOs in basic ingredients such as baking powder, cornstarch, canola and soy oils, corn meal, and sugar. And many non-GMO ingredients were in short supply. For example, at one point, Chipotle found that it could not supply all its locations with enough non-GMO pork to make carnitas. Given the supply chain challenges, Chipotle decided to use non-GMO products in its food preparation but to continue to serve some soft drinks with sweeteners derived from genetically engineered corn. Has Chipotle’s focus on eliminating GMOs created value for its customers? Defend this market strategy. From an ethics standpoint, discuss Chipotle’s focus on sourcing non-GMO food products versus attention to food safety. The company’s oversights in food safety resulted in numerous customers becoming ill (E. coli, norovirus, and salmonella). Discuss the challenges Chipotle faces in overcoming the negative image that resulted.
In early 2014, Chipotle Mexican Grill announced that it would stop
using genetically modified ingredients (GMOs) in its restaurants.
Many observers applauded this move. However, critics of the
fast-food chain cited a lack of evidence to support its anti-GMO
stance. They suspected that Chipotle’s anti-GMO claim was simply a ploy to distract consumers from a larger issue: the company’s risky sanitation practices. Chipotle’s anti-GMO policies may
have won the burrito chain some health-conscious customers,
but at the same time customers were becoming sick after eating
at some Chipotle locations, calling into question the firm’s food
handling and safety practices.
Steve Ells, founder and co-CEO of Chipotle, said the GMO
decision was “another step toward the visions we have of changing the way people think about and eat fast food. Just because
food is served fast doesn’t mean it has to be made with cheap
raw ingredients, highly processed with preservatives and fillers
and stabilizers and artificial colors and flavors.” However, ridding Chipotle’s supply chain of genetically altered components
proved difficult. The chain discovered GMOs in basic ingredients
such as baking powder, cornstarch, canola and soy oils, corn meal, and sugar. And many non-GMO ingredients were in short
supply. For example, at one point, Chipotle found that it could
not supply all its locations with enough non-GMO pork to make
carnitas. Given the supply chain challenges, Chipotle decided to
use non-GMO products in its food preparation but to continue to
serve some soft drinks with sweeteners derived from genetically
engineered corn.
Has Chipotle’s focus on eliminating GMOs created
value for its customers? Defend this market strategy.
From an ethics standpoint, discuss Chipotle’s focus on sourcing non-GMO food products versus attention to food safety. The company’s oversights in food safety resulted in numerous customers becoming ill (E. coli, norovirus, and salmonella). Discuss the challenges Chipotle faces in overcoming the negative image that resulted.
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