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About Chipotle Inc. Chipotle is definitely an American restaurant chain that serves a simple menu of Mexican-inspired food. Founded in Denver, Colorado, in 1993 by Steve Ells, a classically trained chef, Chipotle has expanded to more 2,000 store locations, which together serve over 1 million customers daily. The company is known for its brand name and marketing of Food With Integrity, its persistence for offering fresh meal items and sourcing ingredients from ethically minded suppliers. With this premium food ethos, Chipotle helped usher within an era of fast casual dining experiences, a few of which loosely mimicked the chains popular strategy to fresh preparation and assembly-line service.
Since going public in 2006, Chipotles restaurant footprint has grown rapidly, and now includes locations in Europe. The organization has also created a portfolio of subsidiary brands, including Pizzeria Locale, the Asian-inspired ShopHouse Kitchen, and Tasty Made, a new burger joint. Following a number of food-safety incidents in 2015 connected to its flagship locationsnearmenow.net, however, the companys business has suffered, and also reported its first quarterly loss in a decade. In order to rebound sales and regain the trust of consumers, Chipotle has added new menu items like chorizo and introduced a rewards program called Chiptopia.
“To ensure that us to continue to perform Chipotle there, area of the deal is we need to serve breakfast,” Niccol said. That location serves an egg and cheese breakfast burrito then one with egg and chorizo. That latter item, Niccol said, is definitely the reason he won’t rule breakfast out completely.
“Our chorizo is fabulous,” he explained.”You place chorizo with eggs in a burrito, that’s very good. Right? So down the road maybe, however, not today.” Rather than branching out into breakfast, Chipotle (CMG) is leaning into what it knows its consumers are after: meat burritos for lunch and, increasingly, dinner.
Chipotle CEO: Fake meat is not our approach to food
“People at this time are dialed in to Chipotle simply because they love the chicken, the steak, the carnitas, the barbacoa,” said Niccol, noting that the company’s chicken burrito makes up the bulk of its sales.
Chipotle recently added carne asada to its menu being a limited-time offer, the 1st time that this chain added a brand new meat item since it reintroduced chorizo in 2018. The carne asada option was tested in three American cities in the last year and performed “incredibly well,” in accordance with Chipotle.
The chain can also be making digital improvements to encourage more orders, including outside lunchtime. It launched a loyalty program, sped the drive-thru process with “Chipotlanes” for pickup orders and added a second make line for online orders. It’s also begun to offer delivery. Digital orders are also going through the roof. Within the second quarter, they grew 99% and included 18% of sales. Niccol thinks that certain day, digital orders might make up half of Chipotle’s sales.
Chipotle’s “digital transformation” is all about “giving people more access and driving even more into this idea of a frictionless experience,” Niccol said. The organization wants to continue leaning into tech, he added, noting that the “Chipotlanes” will likely “be considered a significant bit of our business.” Together, the changes are making it more convenient for groups to order, Niccol explained, which suggests more dinner orders.
“In the event you are available in with a team of friends, to move down our line, it may be a bit cumbersome,” he explained. When ordering online or through the app, “you can share the payment, you can purchase ahead, you may have everybody’s order, you merely show up, you take a seat or grab and go.”
By centering on lunch and dinner, Chipotle avoids the expenses related to breaking into breakfast. The meal might be lucrative, but there’s a very high barrier to entry for businesses that don’t already serve food each day. Wendy’s, as an example, recently shared that it intends to hire about 20,000 US employees and invest $20 million in serving breakfast nationwide.
It’ll be especially hard to recruit so many employees in this tight labor market. Chipotle, for the part, is trying to bring in workers by encouraging mobility within the company, offering quarterly bonuses and, among other things, teaching unique skills.
“The very first week on the job we educate you on knife skills concerning how to actually cut vegetables, how to cut lettuce, how to cut avocados, the best way to mash guacamole,” Niccol said. “They are all skills that transfer then with other opportunities within the restaurant industry.”
So far, Chipotle’s efforts seem to be working. The company’s stock has nearly doubled to date this coming year, and its sales as well as in the next quarter jumped 13% to $1.4 billion. Niccol continues to be credited with helping turn the mjjrlx around after E. coli outbreaks in 2015 and 2016 drove customers away.
Today, Chipotle has roughly 2,500 restaurants. At the end of 2014, there was about 1,800 Chipotle locations. Niccol thinks that figure could grow to about 6,000, he told Romans, without specifying a timeline. “We’re just getting started.”
Chipotle’s Chief Reputation Officer Laurie Schalow told TODAY that this guac’s recent appearance was as a result of change of its avocado supply as they switch between sources during peak growing seasons in different locations. Schalow claimed that many locations will begin using mostly Mexican-grown avocados by the end of this month. Using that mystery solved as well as a new meat on the menu, this is a good week as a Chipotle fan.