Listen: NYC Sues Chipotle, Accuses Food with Integrity Chain of Violating Labor Laws
"Business Wars daily is sponsored by audible audible has the world's largest selection of audio books and Audio Entertainment Start Listening with a thirty day audible trial by visiting audible dot com slash B w daily or by texting. Bw Daily to five hundred five hundred from wondering I'm David Brown and this is business wars daily on this Tuesday September seventeenth. chipotle is struggling with mismatch between mean. It's branding and reality. At least that's how some observers might see it earlier. This month. chipotle launched a publicity stunt that poked fun at our thieving ways it turns out that customers especially college kids often steal certain things at chipotle particularly little bottles of Tabasco sauce which chipotle conveniently offers on the counter alongside. It's plastic forks the chain goes through five and a half million bottles of hot sauce every year enda tons of plastic forks to sure they could try to shrink the theft by reserving Tabasco only for those who requested but where would the fun be in and that instead they embraced are larceny to celebrate back to school. Season Chipotle is offering free delivery on Sundays through the end of September with with a cheeky bonus to the first fifty people who took them up on the offer that bonus the things you borrow kit meaning of course the things you steal it contain contain piles of Napkins extra forks and yeah two bottles of Tabasco Sauce. The kids came in plain brown boxes wrapped in tape marked property of chipotle's lake. You could even order them online for free but the limited supply disappeared as fast as a stash of hot sauce japodlay brands itself as the food with integrity chain. This stunned allowed them to play up at branding. I mean on the one hand advertise free hot sauce on another sustain the comic approach to marketing here's the problem to make purpose driven branding work all parts of your operation have to be in sync and on September tenth the city of New York supposedly for allegedly violating the the city's fair workweek law more than thirty workers from a handful of Brooklyn locations had filed complaints with the city sank japodlay had violated the city law demands predictable schedules bills for fast food workers. That's according to Mayor Bill De Blasio's office employee said japodlay managers often change their schedules at the last minute gave them no notice of those changes and failed to pay premiums for them. They also accused the company of demanding that employees close a store at night and then open it the next morning the law requires wires the employee's consent for those kinds of back toback shifts. Finally the city also accused the Brooklyn locations of having an illegal sick leave policy de Blasios administration is seeking more than a million dollars in penalties. The city is also investigating labor practices at eighteen chipotle's in other parts of Manhattan. Japodlay says it's cooperating with the city and that filing charges was unnecessary. The accusations however prompted the New York Daily News to call the chain burrito bullies. He's the stock market reacted quickly sending share prices down about five percent shares had been soaring because reportedly had grown. It's digital business at a sizzling pace hace sparked by funny tactics like the things you borrow campaign just last week chipotle was named as Americans favorite fast casual Mexican restaurant for the third year year in a row according to a New Restaurant Industry Survey Chipotle as biggest competitor as it has been for years is Cuba chipotle's latest flap could cause some customers customers to switch to Cuba although most people still choose their tacos and Burritos for flavor convenience and price the fine line that you police walking walking is by branding itself as both honest and healthy no matter whether chipotle is proven right or wrong in New York City's lawsuit the difficulty of balancing on that fine vine purpose driven line has become apparent used to be that it wasn't easy being green now. It seems it's not easy making a big deal about integrity less you. I can assure it in every corner of Your Business for chipotle this new labor law suit could prove even hotter than hot sauce in its things you've are from wondering this is business wars day. Hey listen if you like our shows Sharon episode Fred why Mike I'm James Easy to do right from those podcast APPS. Thanks about Chop David Brown back with you tomorrow. Today's episode of Business Wars daily is brought to you by audible. Audible has the world's largest selection of audio books and audio entertainment right now. I'm listening to audible original called it burns the scandal plagued race to breed the world's hottest Chili. It's wild. It's funny and it's about got so much more than Chili's with a convenient audible APP. You can listen anytime anywhere on any device Mobile Alexa Enabled Bluetooth and a whole lot more as a member. You can uneasily exchange any title. You don't love it anytime plus. You get to keep your library of license. 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