Chipotle Offers More Free Food As Part of Promo Campaign To Cover Up The Epidemic Events

January 19
7:15 AM 2016

Restaurant chain Chipotle has doubled the quantity of food, it provides to the customers for free. The restaurant's approach is apparently aimed to regain its reputation after the E. Coli outbreak found in Washington and Oregon in October.

The Mexican Grill restaurant is also under a criminal investigation related to a norovirus outbreak in California just a few months before the E. Coli outbreak. However, the chain will remain closed on February 8 to hold meetings about the outbreak and teach employees about important changes on improving food safety, reports Mail Online.

The restaurant chain has doubled the quantity of free foods awarded to the customers. Referring the practice as a long cherished culture of the restaurant, the accusations have been just out righted by the Co CEO Monty Moran during an interview at the ICR conference. The conference is a closed door investment one that attracts retailers and restaurateurs, reports Yahoo Finance.

Chipotle has long been cherished as a Wall Street favorite for investment in its shares. But following the food borne epidemic outbreak, the restaurant giant has witnessed to drop its stock price precipitously. Meanwhile, its sale has also been witnessed to nosedive following the epidemic outbreak, reports CNBC.

But on Wednesday, Chipotle stock has jumped following updated comments to investors and analysts from the company at the ICR conference. Analysts have attributed the uptick in part to positive comments from the company about a potential end to the CDC's E. coli investigation and upcoming promotional measures to get customers back.

The new safety measures, to be adopted by Chipotle, include using one location to chop tomatoes and cucumbers and blanching onions to kill germs. However, Chipotle has declined to provide further details like date and location for providing the free foods. But details of the promotion are said to be up to individual stores.

Last month, a federal subpoena has been served to Chipotle as part of a criminal investigation tied to a norovirus outbreak at one of its restaurants in California. To override the dilemma, the company is also reported to adopt plan for a new marketing campaign, starting in February. As per the new marketing policy, it will send emails to customers directly.

The investigation is being conducted by the U.S. Attorney's Office for the Central District of California with support from the Food and Drug Administration's Office of Criminal Investigations.

The subpoena requires the restaurant chain to represent a broad range of documents tied to one of its hubs in Simi Valley, California. The Chipotle center is believed to be the source of the norovirus outbreak under investigation.

While fighting stings of epidemic outbreak both socially and legally, share price of once Wall Street favorite Chipotle has fell down drastically. To attract the customers again, the restaurant giant has taken special promotional campaigns which include more free food to the customers. Following the discussed marketing plans revealed by the company Co-CEO in ICR conference, share price has been witnessed to increase further.

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