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.
It will take at least three years for Takata and other manufacturers to make enough air bags to replace the company’s defective ones. Because of their chemistry, Takata’s devices become less stable over time. That leaves millions of drivers with cars that could contain an air bag that’s like a ticking time bomb. ... Takata, founded by the Takada family in the 1930s as a textile maker, produced parachutes for the Imperial Japanese Army during World War II. In 1960, Takata began manufacturing seat belts for Japan’s carmakers, which were leading the country’s industrial expansion. It was the only company whose seat belts passed the U.S. National Highway Traffic Safety Administration (NHTSA) crash test standards in 1973. ... Air bags deploy in controlled explosions. Their designs are drawn from rockets and munitions. A former Honda engineer, Saburo Kobayashi, described Takada’s reservations in a 2012 memoir. “If anything happens to the air bags, Takata will go bankrupt,” Takada said, according to the book. “We can’t cross a bridge as dangerous as this.” Eventually, he relented. ... Lillie says he left Takata in 1999, partly because the company ignored his warnings about ammonium nitrate. He says Takata’s executives and workforce were unprepared to take on such a difficult design and manufacturing process. “Takata engineers claimed they had this magic,” he says. “No one else could figure it out, and they had.”
Jay Peak had consisted only of a ski area and a roach-ridden lodge. Now it had three hotels, six restaurants, some 200 cottages, an indoor water park, an ice rink, a spa, and a convention center, all tended to by 600 employees. The $280 million transformation had been made possible by a U.S. government program known as EB-5, which allows prospective immigrants to invest $500,000 in hard-up areas in exchange for temporary residency for themselves and their families. Anyone whose investment creates 10 jobs can then become a permanent resident. The only faster way to become an American is to marry one. ... The EB-5 program has opened up all sorts of possibilities since it was started in 1990—mischief, abuse, and fraud among them. Initially it required investors to put in $1 million and show direct evidence that the money had led to those 10 new jobs. But after two years, Congress modified the program to encourage investment in rural and underdeveloped areas, permitting prospective immigrants to invest less money in projects and count “indirect” jobs estimated by economic models. ... These projects get sponsored by federally approved regional centers, which serve as economic-development organizations drawing on EB-5 money. There are now 861 such centers, all of which—except for Vermont’s—are privately run. ... The tangled financing they’d uncovered left more than half of the 731 foreigners who had placed their money with Stenger and Quiros vulnerable to deportation, and threw $83 million that had been invested in the biotech project into limbo.
Before the American Dream was the American Dream, it was Xanadu. When ground broke on the site in 2004, hundreds of guests attended a million-dollar party, with martinis in one tent and artificial snow in another. Xanadu’s developer, Mills Corp., completed most of the main building before running out of money in 2006. A second developer ran aground in the Great Recession. The Trump Organization, among others, decided against taking on Xanadu, which sat vacant and ridiculed, having already cost developers $2 billion. ... The Ghermezian family story, the one they don’t often talk about, begins in Central Asia in the early 20th century. Jacob Ghermezian, Don’s grandfather, operated a large bazaar in the Uzbek city of Samarkand, until the Russian Revolution abolished private property. He moved to Tehran and built a real estate fortune whose centerpiece was a complex with shopping, entertainment, apartments, and offices ... In the 1950s, amid political and economic uncertainty, Jacob, his wife, Miriam, and their four sons—Nader, Raphael, Bahman, and Eskandar, who is Don’s father—left Iran for North America. ... Like most real estate developers, the Ghermezians depend on other people’s money to build. The larger the project, the riskier it is to investors, because the steep initial cost comes far in advance of the revenue.
Domino’s Pizza Inc. has decided that modern works better than authentic, and fun is best of all. For the past five years, the company has been emphasizing all the ways you can order pizza with minimal human and maximal digital contact. ... Since the end of 2008, when Domino’s was threatened by declining sales and distressed franchisees, its share price has increased 60-fold. The company is now worth $9 billion. The second-biggest U.S. chain has also been stealing customers from rivals, notably from the biggest, Pizza Hut Inc. Domino’s went from having a 9 percent share of the pizza restaurant market in 2009 to 15 percent in 2016 ... Given how the company’s technological prowess and financial fortunes have improved in step, you could be fooled into believing the former is entirely responsible for the latter. But the truth is, most customers don’t use a voice-activated app or emojis to order pizza, and most pizza is still delivered by humans in cars or on scooters or bikes. And although Domino’s offers 27 toppings and sauces, most people still order just pepperoni. As much as tech, what buoyed Domino’s was a once-in-an-industry strategy: In 2009 it admitted that its foundational product was … bad.