Tag: food safety

Guest Post: Food Safety and the E. coli Outbreak at McDonald’s

Temple U. Prof. Misty Blessley raises a timely topic that has broad interest for those of us who are fast-food consumers.

Your Heizer/Render/Munson textbook highlights several examples of McDonald’s operations and supply chain practices. In Chapter 6, poka-yoke methods like the aluminum scoop and fry container ensure portion accuracy. Chapter 11 highlights how the company mitigates supply risks by working with multiple vendors and establishing robust contracts. Chapter 9 discusses how McDonald’s balances production flow in its hamburger assembly lines.

However, the recent E. coli outbreak prompted McDonald’s to reevaluate parts of its supply chain to maintain food safety standards. At least 75 people have been infected across 13 states—most reporting they ate a Quarter Pounder before falling ill. The states include Colorado, Montana, Nebraska, and others throughout the Midwest and West.

After tests confirmed that its beef patties were not linked to the E. coli outbreak, McDonald’s has reintroduced Quarter Pounders in several restaurants. Although the Food and Drug Administration (FDA) initially examined both the beef and slivered onions, it ruled out the patties. Early evidence indicates the onions are the likely source, but the FDA’s investigation is ongoing.

Taylor Farms, based in Salinas, California, recently issued a voluntary recall of four onion products due to possible E. coli contamination. McDonald’s identified Taylor Farms as the onion supplier for all locations connected to the outbreak and confirmed its decision to halt orders and deliveries from this supplier.

McDonald’s chief supply chain officer for North America, reassured the public that the outbreak was limited to a specific ingredient and region. He expressed confidence that all contaminated products had been removed from their supply chain and are no longer present in any McDonald’s restaurants.

This outbreak highlights the importance of quick and efficient food traceability for high-risk foods like cut onions. The Food Safety Modernization Act (FSMA) focuses on shifting the FDA’s approach from reactive to proactive. A key part is the FSMA 204 Food Traceability Rule, which requires more detailed recordkeeping for high-risk foods. The rule, discussed in OM Podcast #18: An Inside Look at the U.S. Food Supply Chain, goes into effect in 2026.

Classroom discussion questions:
1.  What are the challenges associated with traceability of cut food items from farm to fork?
2.  How do slivered onions present different food safety challenges than cooked beef patties for McDonald’s?

OM in the News: Chipotle Rolls Out RFID for Food Traceability

We note the increasing role of RFID (Radio Frequency ID) tags, which are smart bar codes that can automatically identify and track inventory, in our Process Strategy and Inventory chapters (Ch. 7, 12). This blog has addressed RFID in retailing, warehousing, the drug industry, hospitals, at Disney, and in luggage control at airports. (Type RFID in the search box on the right, below, to read about these applications).

Now, Chipotle Mexican Grill is translating the technology to the food industry. Chipotle has scaled up its use of RFID to trace ingredients from suppliers to restaurants in real-time, writes Supply Chain Dive  (May 23, 2023).

The restaurant chain has asked all of its suppliers to tag products with RFID. Chipotle is doing final testing use of the technology on a regional basis, and plans to roll it out nationally in the coming months.

“There’s no restaurant company in the U.S. that has this visibility into inventory on the national level,” says the company’s VP-Supply Chains. “Not one.”

The use of RFID is part of Chipotle’s herculean effort over the past few years to better trace its ingredients following a headline-grabbing E. coli outbreak in 2015 that sickened over 1,000 customers and took a bite out of profits.

Using RFID gives Chipotle a real-time snapshot of its inventory across distribution centers and restaurants, but the technology also benefits the company’s suppliers. Vendors can use Chipotle’s RFID system to improve their own inventory management processes and cut down on repetitive tasks.

Poor inventory management can lead to more food waste, as was the case in 2018 when the FDA ordered the destruction of all romaine lettuce due to limited visibility into suppliers.

“It is imperative to know where your products come from and where they are at all times,” the firm’s VP added. “You have to have very, very good visibility of that supply chain and the value chain so that if something were to happen, you can address it right away.”

The cost to integrate the technology is also minimal since RFID readers already complement existing scanners in Chipotle restaurants.

Classroom discussion questions:

  1. Reviewing past blog posts, summarize the use of RFID in three other industries.
  2. Why is Chipotle implementing this system?