Chipotle will be making some important changes as the company announced that it will be moving to a sole CEO which will focus more on customers.
This has not been an easy year for the Mexican grill food chain. After experiencing a serious illness crisis just last year, the company has not met recovery expectations.
Chipotle Mexican Grill Inc. is a Denver, Colorado-based food chain. With a fast casual restaurants specific, the chain spread outside the United States. As such, it can also be found in Canada and several European countries.
Its specific dishes consist of tacos and burritos. However, back in 2015, the restaurant chain was hit by a foodborne illness crisis.
An E.coli outbreak led to the closing of more than 40 American stores. The company shares also marked a significant decrease in value.
The decline was first registered after the company announced lower than expected third quarter year reports.
As the number of potential Chipotle-based infections sprung up, the financial repercussions were soon to follow. Besides a market share value drop, the chain has also lost a significant store sales percentage.
With company shares continuing their downwards trend, last week saw their as yet biggest drop. The Chipotle shares dropped by 7.8 percent in a single day.
The decline has reportedly been registered after a company official’s statements. Steve Ells, company co-CEO , expressed his dissatisfaction of the company’s illnesses rebound.
Ells is reportedly dissatisfied with both recovery rates and the company’s in-store experience.
As of Monday, the Chipotle board of directors announced a new administrator change. With the company having had two CEOs, it will return to the more common sole such executive.
Ever since 2009, Chipotle Mexican Grill has been led by both Steve Ells and Monty Moran. The two held a co-Chief Executive position.
However, according to the statement released on Monday, Monty has officially resigned. Moran’s resignation has also been announced to be effective immediately.
After being named sole chief executive, Ells release a series of statements. One of them targeted his new, special focus.
Ells declared that, from now on, he will be seeking to improve the customers’ experience. The declaration was released during a phone call with company investors, also on Monday.
One way of reaching his target will be of getting closer to the daily restaurant operations. Ells stated that they will be seeking to eliminate the uncalled for and “unnecessary complexity” of such operations.
This change will affect both the company hiring practices and its training programs. It will also be seeking a new way of measuring its success rates.
Ells considers that increasing the customer visit repeats may be a key to the company’s recovery.
Following his CEO position resignation, Moran will also be stepping down from his Chipotle board of directors chair. Ells will remain the board chairman, in a decision somewhat contrary to investors pressure.
Reports state that the company investors had been trying to determine a more resolute change. As such, they were proposing an independent board chair. They were also suggesting setting up a less insular board.
However, the board considered that Chipotle will benefit from Ells’ leadership return. The board considers that his high guest standards ideas and unyielding commitment will bring a change. They are also hoping for a more efficient on-going recovery process.
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