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About Chipotle Inc. Chipotle is definitely 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 renowned for its brand name and marketing of Food With Integrity, its persistence for offering fresh meal items and sourcing ingredients from ethically minded suppliers. With this particular 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 continues to grow rapidly, and today includes locations in Europe. The organization also has designed a portfolio of subsidiary brands, including Pizzeria Locale, the Asian-inspired ShopHouse Kitchen, and Tasty Made, a brand new burger joint. Following a number of food-safety incidents in 2015 linked to its flagship chipotle locations 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 consumers, Chipotle has added new menu items such as chorizo and introduced a rewards program called Chiptopia.
“In order for us to continue to operate Chipotle there, part of the deal is we need to serve breakfast,” Niccol said. That location serves an egg and cheese breakfast burrito and something 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 set chorizo with eggs in a burrito, that’s excellent. Right? So down the road maybe, although not right now.” Rather than 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 approach to food
“People right now are dialed directly into Chipotle simply because they love the chicken, the steak, the carnitas, the barbacoa,” said Niccol, noting that the company’s chicken burrito makes up the bulk of its sales.
Chipotle recently added carne asada to its menu as being a limited-time offer, the 1st time the chain added a brand 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,” in accordance with 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 another make line for online orders. It’s also begun to offer delivery. Digital orders are also going over the top. In the second quarter, they grew 99% and taken into account 18% of sales. Niccol thinks that certain day, digital orders could make up half of Chipotle’s sales.
Chipotle’s “digital transformation” is about “providing people with more access and driving further into this idea of the frictionless experience,” Niccol said. The organization intends to continue leaning into tech, he added, noting that the “Chipotlanes” will probably “become a significant bit of our business.” Together, the alterations are making it more convenient for groups to buy, Niccol explained, which suggests more dinner orders.
“In the event you come in with a small group of friends, to maneuver down our line, it could be a bit cumbersome,” he explained. When ordering online or from the app, “it is possible to share the payment, you can order ahead, you might have everybody’s order, you merely show up, you sit down or grab and go.”
By concentrating on lunch and dinner, Chipotle avoids the costs associated with breaking into breakfast. The meal might be lucrative, but there’s a high 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 tough to recruit a lot of employees in this particular tight labor market. Chipotle, because of its part, is wanting to attract workers by encouraging mobility in the company, offering quarterly bonuses and, among other things, teaching unique skills.
“The first week on the job we show you knife skills regarding how to actually cut vegetables, the best way to cut lettuce, the best way to cut avocados, the best way 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 up to now this 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. 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 starting out.”
Chipotle’s Chief Reputation Officer Laurie Schalow told TODAY that the guac’s recent appearance was as a result of change of its avocado supply since they switch between sources during peak growing seasons in various locations. Schalow stated that many locations begins using mostly Mexican-grown avocados at the end of the month. Using that mystery solved along with a new meat on the menu, this is a great week to become a Chipotle fan.