Posts Tagged‘crisis management’

Starting Fresh?

chipotleStarting out in 1993 as a simple burrito stand in Denver, Chipotle Mexican Grill now has more than 2,000 locations…and this year is facing perhaps its greatest challenges ever.

Plagued by controversy since the summer of 2015, with a half dozen outbreaks of E.coli and norovirus being reported at locations across the country, the restaurant chain was also subpoenaed as part of a federal investigation by the U.S. Justice Department and the FDA. According to a USA Today article, the company will have lost three years of earnings between fiscal year 2014 and fiscal year 2017 because of multiple food-related illness outbreaks.

While Chipotle’s legal team certainly has their hands full, their public relations team may have the bigger challenge. In an attempt to win back the trust of customers this year, the message of fresh food made from locally sourced ingredients – a longstanding hallmark of their menu – will now have to be combined with one of food safety.

In an interview with the New York Times, Chipotle Public Relations Director Chris Arnold said that for starters, a comprehensive review of food safety practices was conducted, leading to a newly stringent food safety plan.

But how best to translate reformative moves into diners passing through the restaurants’ doors?

Greet the Elephant in the Room.  According to company executives, marketing efforts toward “inviting customers back” will reference food safety in an indirect but creative manner. This tact aims to avoid brushing off the significant scandal while reassuring customers, “we’re on it.”

Free Stuff.  Even wary customers can perk up at the idea of a freebie. Individual stores have always been given an allotment of free product to give away toward promotional efforts. In February, that amount doubled, with distribution details left to the discretion of each manager.

Close Doors Before Opening Them.  Literally. On February 8th, all Chipotle stores closed for several hours so that company executives could address employees about the status of the outbreaks and how they will be working to prevent foodborne infections from recurring.

Whether these tactics pay off remains to be seen. Large restaurant chains have been known to successfully ride out such crises in the past, as long as the matter is handled quickly and completely. Chipotle seems to be on the right track, but ultimately their fate rests in the hands of their customers.

Crisis PR is no joke. When a company’s reputation and future are on the line, it is critical to have the best representation guiding external communications. If you’d like to talk about how our team can back you on that front, we’re ready. Give us a call at (203) 762-8833. We’re ready to help!

– BML

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GM CEO speaks the truth while tackling a PR crisis

I’m sure you’ve heard the saying, “honesty is the best policy.” Some learn the hard way that “the truth always comes out eventually” and get burned. Others, like General Motor’s top exec, Mary Barra, followed a basic tenet of good PR:  if you have a problem or issue, own  it and address it upfront and quickly.

Very few CEO’s would want to be in Barra’s shoes right now, but many appreciate the fact that she is taking a recall into her own hands and tackling it head-on. You can catch up on the fine details of GM’s recall here. In a nutshell, it sounds like the automaker failed to fix faulty ignition switches in its Chevy Cobalt and those faults have since been linked to 12 deaths. To make matters worse, it appears that GM was aware of the problem for as long as 10 years before taking action to correct the problem.

There are obviously still some very serious issues at GM and many of them can’t be fixed by improved public relations.  But, improved public relations will help give GM the space and time they need to get things fixed IF they move forward to do so quickly, decisively and transparently.

If you read our post on the Tesla’s PR crisis, some of the same crisis management points can be used here. In general, Kovak-Likly recommends the following:

  • When lives are involved, it’s even more crucial to bring out the truth quickly and proactively than to have it pulled out.
  • Giving an update that says we have no new information is better than being silent, even if you have no new information to deliver.
  • Be transparent.
    o   Let people know what you are doing to resolve the situation.
    o   Detail the steps you plan to take to avoid this in the future.

Barra’s strategy will be tested over the coming weeks and is certainly on the path to a reasonable public relations outcome if she continues to be open and honest.

If you have a problem or issue you need help addressing, give us a call or shoot me an email, we’d love to help you develop an issue or crisis communications plan.

-BML

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When does a car fire = a PR win?

Say what you want about electric cars, but you’ve got to admit that the Tesla Model S is a stunner. Here in Connecticut, we’ve got a fair amount of public EV charging stations, and I’m seeing more and more Teslas on the road.

That’s why I was heartened to receive an email from Tesla CEO Elon Musk in response to reports of a dramatic Model S fire reported in Washington last fall. You can check out Musk’s email on Tesla’s blog.

Fire aside (the driver was uninjured), Tesla’s response to the incident is a PR win. By addressing the issue head-on, Tesla got out in front of the news. Google “tesla model s fire” and you’ll see that the first page of search results links to articles about Musk’s response to the situation—not to articles about the initial incident or articles with a sky-is-falling perspective on why EVs are doomed. Tesla’s response was crisis management 101, but sometimes simple is better.

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If you find yourself dealing with a PR crisis, Kovak-Likly recommends taking a page from Tesla’s book and being proactive in your communications to the media and your customers. Be sure to answer the following questions in your response:

  1. What happened?
  2. What does it mean to your customers, investors or employees?
  3. What did you do to resolve the situation?
  4. What are you doing to avoid this in the future?

Or, you could always call us. Our team is at our best when the pressure’s on, and we’d love to help you turn your next crisis into an opportunity to build customer loyalty.

– BML

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