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About Chipotle Inc. Chipotle is definitely an American restaurant chain that serves a basic 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 organization is recognized for its brand and marketing of Food With Integrity, its commitment to offering fresh meal items and sourcing ingredients from ethically minded suppliers. Using this premium food ethos, Chipotle helped usher in an era of fast casual dining experiences, many of which loosely mimicked the chains popular strategy to fresh preparation and assembly-line service.
Since going public in 2006, Chipotles restaurant footprint continues to grow rapidly, and now includes locations in Europe. The company has additionally developed 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 chipotle locations near me, however, the companys business has suffered, as well as 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 including chorizo and introduced a rewards program called Chiptopia.
“In order for us to continue to perform Chipotle there, portion of the deal is we must 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 pretty good. Right? So later on maybe, but not right now.” As opposed to 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 really our strategy to food
“People today are dialed directly into Chipotle since they love the chicken, the steak, the carnitas, the barbacoa,” said Niccol, noting that this company’s chicken burrito makes up the bulk of its sales.
Chipotle recently added carne asada to its menu as a limited-time offer, the 1st time that this chain added a brand new meat item as it reintroduced chorizo in 2018. The carne asada option was tested in three American cities over the past year and performed “incredibly well,” based on Chipotle.
The chain is also making digital improvements to encourage more orders, including outside of lunchtime. It launched a loyalty program, sped up the drive-thru process with “Chipotlanes” for pickup orders and added an additional make line for online orders. It’s also started to offer delivery. Digital orders are going through the roof. Within the second quarter, they grew 99% and accounted for 18% of sales. Niccol thinks that a person day, digital orders might make up half of Chipotle’s sales.
Chipotle’s “digital transformation” is approximately “giving people more access and driving even more into this idea of a frictionless experience,” Niccol said. The company plans to continue leaning into tech, he added, noting that the “Chipotlanes” will likely “be a significant bit of our business.” Together, the changes are making it easier for groups to order, Niccol explained, which means more dinner orders.
“If you come in with a team of friends, to move down our line, it could be a bit cumbersome,” he explained. When ordering online or with the app, “you can share the payment, you can purchase ahead, you might have everybody’s order, you simply show up, you take a seat or grab and go.”
By concentrating 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 in the morning. Wendy’s, for example, recently shared which it plans to hire about 20,000 US employees and invest $20 million in serving breakfast nationwide.
It’ll be especially hard to recruit a lot of 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 first week on the job we teach you knife skills regarding how to actually cut vegetables, how you can cut lettuce, how you can cut avocados, the best way to mash guacamole,” Niccol said. “These are all skills that transfer then with other opportunities within the restaurant industry.”
Up to now, Chipotle’s efforts are most often working. The company’s stock has nearly doubled up to now this year, along with its sales and then in the second quarter jumped 13% to $1.4 billion. Niccol has been 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 conclusion of 2014, there have been 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 how to get started.”
Chipotle’s Chief Reputation Officer Laurie Schalow told TODAY that the guac’s recent appearance was because of a change of the avocado supply as they switch between sources during peak growing seasons in numerous locations. Schalow stated that many locations will begin using mostly Mexican-grown avocados in the end of the month. With this mystery solved as well as a new meat on the menu, this is a great week to be a Chipotle fan.