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About Chipotle Inc. Chipotle is an American restaurant chain that serves an easy 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 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 in an era of fast casual dining experiences, many of which loosely mimicked the chains popular approach to fresh preparation and assembly-line service.
Since going public in 2006, Chipotles restaurant footprint has grown rapidly, and today includes locations in Europe. The organization has also developed 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 chipotle locations near me, however, the companys business has suffered, and also reported its first quarterly loss in a decade. To be able to rebound sales and regain the trust of clients, Chipotle has added new menu items like 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 and 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 said.”You place chorizo with eggs in a burrito, that’s pretty good. Right? So later on maybe, however, not right now.” Instead of branching out into breakfast, Chipotle (CMG) is leaning into what it really knows its clients are after: meat burritos for lunch and, increasingly, dinner.
Chipotle CEO: Fake meat is not our strategy to food
“People today are dialed in to Chipotle because they love the chicken, the steak, the carnitas, the barbacoa,” said Niccol, noting 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 first time that this chain added a 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,” in accordance with Chipotle.
The chain is additionally making digital improvements to encourage more orders, including outside of lunchtime. It launched a loyalty program, sped in 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 are going over the top. Inside the second quarter, they grew 99% and accounted for 18% of sales. Niccol thinks that certain day, digital orders might make up 50 % of Chipotle’s sales.
Chipotle’s “digital transformation” is about “providing people with more access and driving further into this concept of any frictionless experience,” Niccol said. The organization intends to continue leaning into tech, he added, noting that this “Chipotlanes” will more than likely “be a significant bit of our business.” Together, the changes are making it more convenient for groups to order, Niccol explained, meaning more dinner orders.
“If 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 from the app, “you can share the payment, you can order ahead, you may have everybody’s order, you merely show up, you sit down or grab and go.”
By centering on lunch and dinner, Chipotle avoids the expenses related to breaking into breakfast. The meal could be lucrative, but there’s a higher barrier to entry for firms that don’t already serve food each morning. Wendy’s, for example, recently shared it wants 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 particular tight labor market. Chipotle, because of its part, is attempting to attract 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 teach you knife skills on how to actually cut vegetables, the best way to cut lettuce, how you can cut avocados, the best way to mash guacamole,” Niccol said. “These are generally all skills that transfer then with other opportunities in the restaurant industry.”
To date, Chipotle’s efforts appear to be working. The company’s stock has nearly doubled so far this coming year, and its sales and then in the next 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. At the end of 2014, there were 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 starting out.”
Chipotle’s Chief Reputation Officer Laurie Schalow told TODAY that this guac’s recent appearance was as a result of change of their avocado supply since they switch between sources during peak growing seasons in various locations. Schalow said that many locations will begin using mostly Mexican-grown avocados at the end of this month. Using that mystery solved and a new meat on the menu, this is an excellent week to be a Chipotle fan.