For a long time, smug worked pretty well for Chipotle Mexican Grill. It’s grown into a chain of more than 1,900 locations, thanks in part to marketing—including short animated films about the evils of industrial agriculture—that reminds customers that its fresh ingredients and naturally raised meat are better than rivals’ and better for the world. The implication: If you eat Chipotle, you’re doing the right thing, and maybe you’re better, too. It helped the company, charging about $7 for a burrito, reach a market valuation of nearly $24 billion. Its executives seemed to have done the impossible and made a national fast-food chain feel healthy. ... Almost 500 people around the country have become sick from Chipotle food since July, according to public-health officials. And those are just the ones who went to a doctor, gave a stool sample, and were properly diagnosed. Food-safety experts say they believe with any outbreak the total number of people affected is at least 10 times the reported number. The CDC estimates that 48 million Americans get sick from contaminated food every year. ... Whatever its provenance, if food is contaminated it can still make us sick—or even kill. Millennials may discriminate when they eat, but bacteria are agnostic. ... Chipotle has said it will shift more food preparation out of restaurants and into centralized kitchens—that is, it will do things more like the fast-food chains it’s long mocked. Ells’s company has always urged customers to think about its supply chain. Well, now they are. ... It has about 100 suppliers for its 64 ingredients. That doesn’t include local farms—those within 350 miles of a restaurant—which at peak season supply only 10 percent of its produce.
Good Eggs was founded in July 2011 in San Francisco. The two software developers behind it wanted to build an efficient way for small farmers and producers to reach consumers who were interested in fresh, beautiful ingredients but didn’t necessarily have the time to hunt them down at a farmers market or a grocery store (which probably wouldn’t carry them to begin with). It was a promising idea, well-positioned at the white-hot Venn-diagram center of some of the biggest themes in tech right now: tech-enabled on-demand delivery, food, eye-popping funding rounds. Good Eggs started operating on a limited basis in the Bay Area in 2012, and by the end of the following year, it had expanded to full service there, opened three additional hubs around the country, and was on its way to hiring hundreds of employees. To date, it has raised almost $53 million in venture capital. ... But by Good Eggs’ own admission — and as Stambler’s sudden email indicated — building the business was immensely, unexpectedly difficult. On-demand delivery, perishable inventory, strict regulations, fluctuating prices, and city-specific quirks added up to a host of logistical challenges that can’t always be neatly predicted or solved by software.