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About Chipotle Inc. Chipotle is surely 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 and marketing of Food With Integrity, its persistence for offering fresh meal items and sourcing ingredients from ethically minded suppliers. Using this premium food ethos, Chipotle helped usher within an era of fast casual dining experiences, many of which loosely mimicked the chains popular method of fresh preparation and assembly-line service.
Since going public in 2006, Chipotles restaurant footprint has expanded 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 whole new burger joint. Following several food-safety incidents in 2015 associated with 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 clients, Chipotle has added new menu items like chorizo and introduced a rewards program called Chiptopia.
“To ensure that us to carry on to run Chipotle there, part 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 excellent. Right? So down the road maybe, although not today.” Instead of branching out into breakfast, Chipotle (CMG) is leaning into exactly what it knows its customers are after: meat burritos for lunch and, increasingly, dinner.
Chipotle CEO: Fake meat is not really our strategy to food
“People today are dialed 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 majority of its sales.
Chipotle recently added carne asada to its menu being a limited-time offer, the very first time that this chain added a brand new meat item because it reintroduced chorizo in 2018. The carne asada option was tested in three American cities in the last year and performed “incredibly well,” according to Chipotle.
The chain is additionally 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 a second make line for online orders. It’s also began to offer delivery. Digital orders also are going over the top. In the second quarter, they grew 99% and taken into account 18% of sales. Niccol thinks that a person day, digital orders could make up half of Chipotle’s sales.
Chipotle’s “digital transformation” is about “giving people more access and driving further into this concept of a frictionless experience,” Niccol said. The business intends to continue leaning into tech, he added, noting that this “Chipotlanes” will probably “be a significant bit of our business.” Together, the alterations make it simpler for groups to buy, Niccol explained, which means more dinner orders.
“If you come in with a team of friends, to go down our line, it can be a bit cumbersome,” he explained. When ordering online or with the app, “it is possible to share the payment, you can purchase ahead, you might have everybody’s order, you simply show up, you sit down or grab and go.”
By focusing on lunch and dinner, Chipotle avoids the expenses associated with breaking into breakfast. The meal may be lucrative, but there’s a very high barrier to entry for companies that don’t already serve food each day. Wendy’s, for example, recently shared which it intends to hire about 20,000 US employees and invest $20 million in serving breakfast nationwide.
It’ll be especially tough to recruit numerous employees in this tight labor market. Chipotle, for its part, is trying to draw in workers by encouraging mobility in the company, offering quarterly bonuses and, amongst other things, teaching unique skills.
“The initial week on the job we educate you on knife skills concerning how to actually cut vegetables, how to cut lettuce, the best way to cut avocados, how to mash guacamole,” Niccol said. “They are all skills that transfer then to many other opportunities in the restaurant industry.”
So far, Chipotle’s efforts appear to be working. The company’s stock has nearly doubled so far this year, and its sales and 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 the avocado supply as they switch between sources during peak growing seasons in various locations. Schalow claimed that many locations will start using mostly Mexican-grown avocados in the end with this month. Using that mystery solved as well as a new meat on the menu, this is a great week to become a Chipotle fan.