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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 grown to more 2,000 store locations, which together serve over 1 million customers daily. The organization is recognized for its logo 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, a few 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 today includes locations in Europe. The company also has 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, as well as reported its first quarterly loss in a decade. So that you can rebound sales and regain the trust of clients, Chipotle has added new menu items such as chorizo and introduced a rewards program called Chiptopia.
“In order for us to carry on to perform Chipotle there, part of the deal is we have 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 the reason he won’t rule breakfast out completely.
“Our chorizo is fabulous,” he said.”You place chorizo with eggs in a burrito, that’s very good. Right? So down the road maybe, but not at this time.” Instead of branching out into breakfast, Chipotle (CMG) is leaning into what it really 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 into Chipotle simply because they love the chicken, the steak, the carnitas, the barbacoa,” said Niccol, noting the 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 first time that the chain added a new meat item as it reintroduced chorizo in 2018. The carne asada option was tested in three American cities within the last year and performed “incredibly well,” according to Chipotle.
The chain is additionally making digital improvements to encourage more orders, including outside 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 begun to offer delivery. Digital orders also are going through the roof. Inside the second quarter, they grew 99% and taken into account 18% of sales. Niccol thinks that a person day, digital orders could make up one half of Chipotle’s sales.
Chipotle’s “digital transformation” is about “giving people more access and driving even further into this idea of the frictionless experience,” Niccol said. The business intends to continue leaning into tech, he added, noting that the “Chipotlanes” will likely “be a significant bit of our business.” Together, the changes make it simpler for groups to order, Niccol explained, which suggests more dinner orders.
“In the event you come in with a group of friends, to maneuver 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 order ahead, you have everybody’s order, you simply show up, you take a moment or grab and go.”
By concentrating on lunch and dinner, Chipotle avoids the expenses associated with breaking into breakfast. The meal may be lucrative, but there’s a higher barrier to entry for firms that don’t already serve food in the morning. Wendy’s, as an example, recently shared that it wants to hire about 20,000 US employees and invest $20 million in serving breakfast nationwide.
It’ll be especially tough to recruit so many employees in this particular tight labor market. Chipotle, because of its part, is attempting to draw in workers by encouraging mobility inside the company, offering quarterly bonuses and, amongst 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 you can cut lettuce, how you can cut avocados, how you can mash guacamole,” Niccol said. “They are all skills that transfer then with other opportunities inside the restaurant industry.”
To date, Chipotle’s efforts are most often working. The company’s stock has nearly doubled so far this season, as well as its sales as well as in the second quarter jumped 13% to $1.4 billion. Niccol has become 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. After 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 how to get 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 numerous locations. Schalow stated that many locations will begin using mostly Mexican-grown avocados by the end with this month. With that mystery solved along with a new meat on the menu, this is a great week to be a Chipotle fan.