We Can Learn from Chipotle's Labor Problem

Back in February, U.S. Immigration and Customs Enforcement (ICE) officials determined that several Chipotle restaurants employed people whose worker status was suspect. In other words, the folks from ICE took a look at the restaurant’s I-9 forms, which verify whether or not a worker can work in the U.S. legally, and said no way are these people legal.  Even before this, in December, Chipotle laid off more than 400 workers in Minnesota, many of whom are suing the company for back pay.

I happen to like Chipotle. They have lots of choices and the food seems fairly clean and healthy (not too much of the cheese or guac, please). But mostly I think their employees rock. They’re always friendly, incredibly patient, and honest. I looked up the nutritional value of their ginormous flour tortillas and was astounded by the number of grams of carbs alone: 44!!! That’s sort of deal-breaker for me. And when I mentioned this to the woman creating my burrito bowl she said, “Oh, I know, ours are the worst.” I loved that! That I could get something else on the menu and pretend I was eating a burrito probably made this so. But truly I was pleasantly surprised by her esprit de corps. She totally got it.

But I wonder if the company brass gets it when it comes to the restaurant’s current woes. I’m surprised, for example, that there’s nothing, zero, nada, on the Chipotle web site (as of this post) about the hiring probe by ICE. With their slogan, “Food With Integrity,” the irony becomes even more apparent. 

Spokespeople for the company seem to be saying that Chipotle is cooperating fully with ICE and, now, with the criminal division of the U.S. attorney’s office in Washington as well. I suppose if you were to survey those standing in line for their food most people would probably either not have heard about the probe or are not too worried. At the location near me, it’s usually bustling with people of all ages (though Fridays belong to the very young) and things seem fairly normal. Still, this is a good story to watch for anyone who might have to worry about managing a crisis. 

You see, the red flags are already flying. According to a piece in today’s Wall Street Journal, some analysts on Wall Street have downgraded the company’s stock, again something everyday Chipotle customers might not be aware of or even care much about if they knew. 

Even so, we’ve seen how quickly a disgruntled worker/customer can turn a relatively quiet controversy into a viral conversation. Keep watch.

For occasional observations on PR, please follow me on Twitter @LeslieLevine.