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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 continues to grow 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 dedication to offering fresh meal items and sourcing ingredients from ethically minded suppliers. With this premium food ethos, Chipotle helped usher inside 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 company has also created a portfolio of subsidiary brands, including Pizzeria Locale, the Asian-inspired ShopHouse Kitchen, and Tasty Made, a brand new burger joint. Following several food-safety incidents in 2015 connected to its flagship chipotle near me, however, the companys business has suffered, and also 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 like chorizo and introduced a rewards program called Chiptopia.
“To ensure that 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 and something with egg and chorizo. That latter item, Niccol said, will be the reason he won’t rule breakfast out completely.
“Our chorizo is fabulous,” he explained.”You put chorizo with eggs in a burrito, that’s excellent. 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 strategy to food
“People today are dialed in to Chipotle simply because 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 the menu being a limited-time offer, the first time the chain added a brand new meat item since it reintroduced chorizo in 2018. The carne asada option was tested in three American cities over the past year and performed “incredibly well,” in accordance with Chipotle.
The chain can also be making digital improvements to encourage more orders, including outside of lunchtime. It launched a loyalty program, sped the drive-thru process with “Chipotlanes” for pickup orders and added a second make line for online orders. It’s also begun to offer delivery. Digital orders are also going through the roof. Within the second quarter, they grew 99% and included 18% of sales. Niccol thinks that one day, digital orders might make up one half of Chipotle’s sales.
Chipotle’s “digital transformation” is all about “providing people with more access and driving even more into this idea of any frictionless experience,” Niccol said. The company plans to continue leaning into tech, he added, noting that this “Chipotlanes” will probably “be a significant piece of our business.” Together, the changes make it more convenient for groups to buy, Niccol explained, meaning more dinner orders.
“In the event you are available in with a group of friends, to go 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 purchase ahead, you may have everybody’s order, you simply show up, you take a moment or grab and go.”
By centering on lunch and dinner, Chipotle avoids the expenses related to breaking into breakfast. The meal may be lucrative, but there’s a higher barrier to entry for companies that don’t already serve food each day. Wendy’s, for instance, recently shared that it plans to hire about 20,000 US employees and invest $20 million in serving breakfast nationwide.
It’ll be especially difficult to recruit a lot of employees in such a tight labor market. Chipotle, for the part, is wanting 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 show 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 all skills that transfer then to many other opportunities inside 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 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 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 getting started.”
Chipotle’s Chief Reputation Officer Laurie Schalow told TODAY that this guac’s recent appearance was due to a change of their avocado supply because they switch between sources during peak growing seasons in various locations. Schalow said that many locations will begin using mostly Mexican-grown avocados in the end of this month. Using that mystery solved and a new meat on the menu, this is a great week as a Chipotle fan.