Broken Loyalty & Chipotle

No matter how much a company spends to rebuild its reputation, once tarnished, the public never forgets. Chipotle Mexican Grill talks a lot about regaining customer loyalty. Loyalty is a combination of belief, confidence and habit. When loyalty is damaged by a serious event, loyalty’s facets are always and forever offset by lingering concerns.

The U.S. market these days is full of evidence that major traditional retailers are having difficult times. Foot traffic is down as customers increasingly buy online from home, a new habit is taking hold. Firms like Chipotle rely on people getting outside, getting hungry and visiting their places for lunch or dinner. Unfortunately, the timing for Chipotle’s food problems could not have been worse.