The beleaguered CEO of Chipotle $CMG Mexican Grill is stepping down. The decision comes after nearly two years spent trying—unsuccessfully—to restore the chain’s reputation after a withering 2015 food-safety crisis.
Steve Ells, founder of the company that has grown to include more than 2,300 US locations, is set to step down as soon as its board finds a replacement. He will continue as executive chairman.
The once-irreproachable brand—known for its ad campaigns that blasted factory farming—lost its footing in late 2015 after a norovirus outbreak sickened more than 300 customers across 14 states, hospitalizing 22. The event shattered consumer trust and sent the company on a long and arduous journey to regain its place in the hyper-competitive fast-casual market. Chipotle has attempted to reshape its image in many ways, including:
Still, none of it was enough to save Ells, who has led Chipotle ever since he started it in 1993. The board announced today (Nov. 29) it was launching a search for a replacement.
“Simply put, we need to execute better to ensure our future success,” Ells said in a statement. “Bringing in a new CEO is the right thing to do for all our stakeholders.”
Some industry analysts, have been calling for Ells to step out of his CEO role for more than a year. In July 2017, after the company was hit with another case of norovirus, analyst Howard Penney told Quartz that if that food- safety relapse wasn’t the “death blow” for Ells, it was getting close. Four months later, he company is making that move.
