(Bloomberg) -- Chipotle Mexican Grill Inc., seeking to recover from an E. coli crisis that dragged down sales and profit, will start a program aimed at helping suppliers maintain food-safety standards.

Chipotle is spending as much as $10 million to fund the effort, co-Chief Executive Officer Steve Ells said during a meeting with employees on Monday. The money will be used to help local farmers offset the costs of new tests and food-safety protocols, he said.

“The money will be used to provide safety support and education that’s necessary to meet our standards,” he said in a clip that was broadcast via the Periscope app.

Chipotle has been struggling to regain its footing following an E. coli outbreak that sickened dozens and brought attention to previous cases of customers getting sick. The crisis has battered Chipotle stock price and crushed its sales, which dropped 36% in January.

Chipotle has apologized for making customers ill and updated its protocols, saying the changes will make the restaurant chain an industry leader in food safety. The company has insisted that it can regain its sales and margins, with a marketing pitch aimed at luring customers back to its restaurants slated to kick off this month.

The U.S. Centers for Disease Control and Prevention recently announced its investigation into the E. coli outbreak had concluded, briefly giving investors hope that the worst was behind Chipotle. But the chain also faces a criminal probe that stems from a norovirus outbreak in August at one of its restaurants in California.

Chipotle temporarily closed all its stores on Monday to hold the meeting with employees. They are scheduled to reopen at 3 p.m. local time.

Join us on Facebook and give us a Like!

Copyright 2018 Bloomberg. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed.

Want to continue reading?
Become a Free PropertyCasualty360 Digital Reader

Your access to unlimited PropertyCasualty360 content isn’t changing.
Once you are an ALM digital member, you’ll receive:

  • Breaking insurance news and analysis, on-site and via our newsletters and custom alerts
  • Weekly Insurance Speak podcast featuring exclusive interviews with industry leaders
  • Educational webcasts, white papers, and ebooks from industry thought leaders
  • Critical converage of the employee benefits and financial advisory markets on our other ALM sites, BenefitsPRO and ThinkAdvisor
NOT FOR REPRINT

© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.