Chipotle is one of the most famous restaurants around, and it has developed an excellent reputation for itself. Chipotle comes from the theme of a Mexican grill. The menu of Chipotle is quite limited. However, it does offer a lot of meal customization. The first branch of Chipotle started to operate in 1993, and now the restaurant has a total of 1700 stores throughout the US as well as other countries. McDonald’s use to have stakes in the shares of Chipotle in the 2000s but later backed out in 2006. After Chipotle went through the IPO, its stock rose from $42 to a staggering $650. Due to this, Chipotle is now a long-term investment opportunity.
Why is Chipotle so popular?
The motto of the restaurant is “Food with Integrity.” This motto was formed due to the inspiration that Steve Ells, the founder of Chipotle, found in the food production system of America. His goal was to serve food to customers that were made ethically and naturally. This ideology is alive in Chipotle to date. To support this fact, Chipotle acquired a no-GMO policy for the ingredients of its food. Even though the restaurant increased its prices in 2014 due to the rising food costs, its sales still rose by about 17%. The store margins of the restaurant also rose by 27% while the overall income grew by 36%. This led to Chipotle deploying an expansion strategy where it opened up 192 new stores during 2014. The sales of Chipotle skyrocketed when documentaries about the adverse effects of the fast-food industry started to get attention. Furthermore, a trend of healthier diets began to emerge, which is why health-conscious customers wanted healthy and organic food from Chipotle.
One of the reasons for the success of Chipotle is its short menu. Chipotle enjoys three different benefits of this small menu. First of all, the ingredients of Chipotle are always fresh, which is why they are more likely to expire faster. However, since the list of Chipotle is small, it reduces the chances of food going to waste.
Furthermore, a limited number of dishes mean that the service is quite quick in comparison to the competitors. In most of the Chipotle competitors where the menu has a long list, orders can often be delayed or get mixed up with each other. At Chipotle, mistakes are on the bare minimum because there are only a couple of choices to choose from; a taco, and a filling. Moreover, even if the worker forgets to add a particular ingredient to the Taco, the customer is watching, and they can just get the component added right then and there.
Lastly, Chipotle does not need to flash advertisements to its customers about its new products. The customers already know what is for sale, which is why the process of buying only consists of order and payment.
All in all, these are the main reasons for the popularity of Chipotle. The restaurant is one of the most famous around the US due to its high quality and exceptional taste.