Denver Westword Blogs
Chipotle wins peta2 award for Most Vegan-Friendly Restaurant Chain It's no secret that Denver loves Chipotle, our hometown hero achieving world domination in the mission-style burrito restaurant chain universe. But the rest of the country loves Chipotle, too -- including the youngsters who voted in peta2's fifth annual Libby Awards to give Chipotle the honor of being named the Most Vegan-Friendly Restaurant Chain. Rachel Owen, the senior street team coordinator of peta2, explains that the name Libby refers to liberation, and peta2 is the youth division of PETA, "geared more toward high-school and college-aged kids." The press release sent out this morning describes two Chipotle options that are, sadly, only available in select markets (at the moment, that would be New York, D.C. and Los Angeles): a meatless Garden Blend burrito filling made from soy and vegetable filling and flavored with adobo marinade, and the brand-new Chik'n Sandwich from vegan company Gardein (whose products you can find in many natural-food stores in the region). But, Owen notes, you can still get a great vegan (or vegetarian) meal at Chipotle even without the meat substitutes. "Chipotle's actually one of my favorite places to eat," she reveals, "because their tortillas, rice, black beans, salsa and guacamole are all vegan." Some of the contenders Chipotle beat out were California Pizza Kitchen, Starbucks -- "which is offering a dairy-free Frappucino made with soy milk," Owen notes -- and Z Pizza, which has vegan cheese and a vegan sausage substitute for pie lovers. Hopefully the meat substitutes at Chipotle will be a hit in test markets so we can taste it in all of Denver soon -- as you might have read, Kyle Smith got a chance to taste the Gardein blend at the Alameda Avenue and Logan Street location about a month ago. Learn more about the Libby Awards and peta2 at www.peta2.com. Business Insider
How Chipotle Became The Gold Standard For Mexican Fast-Food Restaurants To eat Mexican food, the Hound used to rely on Taco Bell and Don Pablos (we are serious about Don Pablos). Then in 2001, we saw our first Chipotle. A few of us dined their regularly and it was our "secret" Mexican joint. That lasted for all of five weeks. Before we knew it, Chipotles were popping up on street corners everywhere - cities, suburbs, colleges, and strip malls. And the lines were out the door at all of them. Must be a franchise expansion model, right? Wrong, dead wrong. Each location is corporate owned and operated. No franchising allowed! “When I created Chipotle in 1993, I had a very simple idea: Offer a simple menu of great food prepared fresh each day, using many of the same cooking techniques as gourmet restaurants. Then serve the food quickly, in a cool atmosphere. It was food that I wanted, and thought others would like too. We've never strayed from that original idea. The critics raved and customers began lining up at my tiny burrito joint. Since then, we've opened a few more. - Steve Ells, founder and CEO A few more? In 1998, McDonald's corporation invested in the concept to grow its store base. Cha-ching! Chipotle now has over 1,000 locations in 36 states and Mickey D's spun the business off in 2006. While Chipotle is not a franchise, they are gold standard in fast casual dining. From their streamlined operations to their delicious food to their modern decor, this concept is nothing short of first class. To better understand how they progressed, see the Company history below:
1993 - First Chipotle opened at a former Dolly Madison ice cream location Burritos are not a complicated food. Why did Chipotle exceed all expectations? Here are our reasons:
1. Adherence to original principles
2. Solid food
3. Superior execution
4. Strong real estate selection
5. Managerial excellence
6. Motivated employees What does this all mean? A big pile of cash for Chipotle and Chipotle shareholders. Priced at $22.00 in its IPO in January of 2006, the stock closed at $229.33 (1/19/11), only a 942% return. No big deal, right? We highlight Chipotle as a business to follow and/or get inspired by. They took a simple concept and one store and grew into a burrito monster. If your mouth isn't watering yet, check out their average store financials:
Amount What's their plan for 2011? To open ANOTHER 140 stores. If you are in the business, study them. They lead the herd and the competition attempts to follow. The Chipotle management team had full confidence that they could execute on a fast expansion plan so mitigating their own risk by franchising was not an option. And it doesn't hurt having McDonald's behind you! You want in? Buy the stock: CMG Disclaimer: We are not financial advisors. You should have bought the stock in 2006- we certainly wish we had. That's why we aren't in finance anymore. BNET
How Chipotle is Winning the Burrito Wars Chipotle Mexican Grill is a Denver-based operator of Mexican eateries located across the U.S. Unlike fast-food or casual-dining competitors, the restaurant chain eschews traditional promotional channels, such as price discounting or constant menu changes, for concept marketing focused on brand education to drive traffic — and sales metrics show “meal is the deal†message is working. Chipotle (CMG) serves its customers tasty ethnic fare at "fast-casual" outlets, so-named because its stores combine the convenience and quick preparation times common to fast-food chains - like McDonald's (MCD) and Yum! Brands (YUM), parent company to KFC, Pizza Hut, and Taco Bell - with the higher quality ingredients found in the food dishes of casual, sit-down restaurants, such as The Cheesecake Factory (CAKE) and P.F. Chang's China Bistro (PFCB). Since opening its first restaurant in 1993, Chipotle has elevated a simple menu of burritos, tacos, and salads into meals that legions of loyal customers find zesty and more sophisticated in flavor, as more than 65,000 sensory experiences are made possible by mixing raw ingredients into signature recipes (including sides like guacamole, cilantro rice and beans) and novel cooking techniques. By not straying from chairman and founder Steve Ells' original vision of making good, affordable Mexican food, Chipotle has emerged the market leader in the $4 billion Mexican-themed, fast-casual, dining segment, with 1,023 units opened in 33 states and Toronto, Canada (2) as of September 30. Despite ongoing unemployment and wage-constraint uncertainties in U.S. labor markets and occasional burrito food fights with other U.S.- operated, Mexican-inspired establishments, like the Jack in the Box (JBX) subsidiary Qdoba, or Moe's Southwest Grill, Chipotle delivered a solid financial performance in third-quarter 2010:
Hungry and dollar poor diners could also head over and chow down on 99 cent burritos or tacos from the "Why Pay More?" Value Menu offered by Taco Bell. "It ain't what you don't know that gets you into trouble, observed Mark Twain. It's what you know for sure that just ain't so." Lowering meal prices will attract traffic to Wendy's or Taco Bell - but for how long? And at what cost to operating profitability? In third-quarter 2010, Chipotle's restaurant level operating margin improved 220 basis points to an industry-leading 27.7 percent, as management refused to endorse the normative economic mandate that price discounting was a requisite to boosting unit sales. Instead, the company dug in and doubled efforts to maintain its food and brand integrity. The creed all Chipotle employees are taught to honor is simple: "Good food IS good business." Also known as the company's mission statement - Food With Integrity: It means serving the very best sustainably raised food possible with an eye to great taste, great nutrition and great value;
“Related to cultural concerns for quality and health, (especially for children, personal and family welfare), consumers resonate more strongly today than ever before to fresh organic categories, which offer the perceived benefits of being hormone or pesticide free. Organic categories that still resonate highly today include dairy, fruit, vegetables, prepared foods, meats, breads and juices.†These polling results reinforce the dogma central to Chipotle’s competitive advantage in the fast-casual food segment. As articulated by Ells on the third-quarter earnings call: “Buying local produce contributes to the great taste of the food we serve, which keeps customers coming back.†In other words, underpinning consumer loyalty is: meal is the deal — not discount pricing strategic to (fleeting) traffic gains at other food-service companies. Healthy growth of the Hispanic population in the U.S. and the love of Mexican cuisine by Americans — almost eight out of ten surveyed adults like to try Mexican flavors and foods, according to Chicago-based foodservice consultant Technomic — further proof Chipotle remains well-positioned for continued market expansion across the country. In 2011, the company plans on opening between 135 and 145 restaurants, up from 120 - 130 new units this year, co-chief executive Monty Moran told analysts on the recent earnings call. Management is showing few signs of complacency. Internal surveys conducted in 2009 revealed that though customers loved the burrito chain’s menu items, many had poor recall or knew little about Chipotle’s dedication to its Food With Integrity philosophy. Last June, the company launched an unconventional marketing campaign, which also included a revamped website, to further build brand awareness by simultaneously entertaining and educating consumers on the company’s commitment to sustainable farming, and the related benefits of Food With Integrity to both customers’ families and local communities. To more effectively communicate its brand message, Chipotle worked with San-Francisco based design firm Sequence to leverage use of its in-store materials as mini-billboards: Chipotle unveiled a new design style, “passionate ramblings,†on a variety of packaging items, including cups, bags, and basket liners in all Chipotle restaurants. Beyond price, meals that offer something more in terms of quality, variety, and healthfulness are more appealing to parents and their children, according to industry news aggregator Foodsight. Consequently, after 17 static years, the company has introduced a few new items to its limited-service offerings. Chipotle’s new kid’s menu, featuring quesadillas and tacos, is debuting in select cities across the country, from Boston to Chicago and Denver. Introducing an entire generation (young families) to the Chipotle brand for the first time will likely prove an additional boon to brand awareness and customer traffic.
The New York Times
Nate Appleman, Rising Star, Turns Up in a Chipotle Once again, Nate Appleman is making people scratch their heads. Not long after filling a trophy case in his brief career at A16 in San Francisco (Rising Star Chef from the James Beard Foundation, a Food & Wine magazine Best New Chef) he suddenly left for New York last year without ever fully explaining why. He ended up with the keys to the kitchen at Pulino’s Bar & Pizzeria, the newest restaurant in Keith McNally’s amber-lighted empire. Pulino’s opened in March. Mr. Appleman was out in November. Then, last Friday, in a report that surprised even the most cynical restaurant industry watchers, he told the New York magazine blog Grub Street that he was rolling burritos at a fast-food restaurant. While it’s true that Mr. Appleman, who once faced the Iron Chef Michael Symon on the Food Network in “Battle Suckling Pig,†now gets carnitas ready for the lunch rush, he’s doing it at a Chipotle Mexican Grill in Chelsea that is one of the company’s three test kitchens. The ingredients and techniques Mr. Appleman will explore, the chain says, will shape the more than 250 million meals it serves each year. As at all Chipotle locations, the salsas are made fresh and the chips are fried throughout the day. Unlike other locations, the test kitchen prepares everything from scratch. Primal sections of meat are butchered into smaller cuts, and all the braising is done on the premises. Many of the ingredients are local, like the red kidney beans and black turtle beans, both from upstate New York. “You know how I believe in cooking with the whole animal,†Mr. Appleman said, explaining he was going to get heritage chickens from Frank Reese Jr., a Kansas farmer who is a hero of the sustainable movement. “All the chicken we get right now is legs and thighs, so the question is what I’m going to do with the breast meat.†One possibility? Chicken chorizo. It’s unlikely that Mr. Reese will supply heritage chickens to the more than 1,000 Chipotle locations, but the company is known for taking its ingredients seriously. “Most people eat fast food in this country,†said Steve Ells, the founder and chairman of Chipotle. “I’ve always argued that because food is served quickly and effectively doesn’t mean it can’t be good. We’re making sustainable food accessible, and a part of everyday eating.†Until recently, Mr. Appleman spent his days thinking up food for special occasions. As Sam Sifton, the New York Times restaurant critic, remarked in his review of Pulino’s, “Goat meatballs to convert the squeamish, with a tang of yogurt: oh, man. Duck with charred dates, fennel, smoked olives: yes.†Now, at 149 Eight Avenue (West 17th Street), Mr. Appleman rubs beef shoulder clod with cumin and an adobo made with chipotle, garlic, oregano and black pepper, and braises it overnight. It makes for a satisfying burrito, or a lavish taco. When accompanied by a margarita made with Patrón tequila — served in a plastic cup — it may be one of the city’s best cheap dates.
AZdailysun.com
January 19, 2011
Chipotle paves the way Josh Biggs Burritos are a specialty at the new Chipotle restaurant on South Plaza Way near Safeway. (Josh Biggs/Arizona Daily Sun) . Loading… ...Chipotle Mexican Grill has a lofty goal: To change the way people think about fast food. How? By doing things differently. You won't find freezers, microwaves or can openers in the Chipotle kitchen. "Not a one," said Barry Priest, general manager of the new Flagstaff Chipotle, which opened its doors Monday. "Everything is fresh," added Kennedy Turner, the Chipotle marketing guru on hand to give this reporter a sneak peek at the restaurant last week. The to-die-for guacamole is hand-mashed four times a day, with 48 avocados going into a single batch. Cheese -- a blend of Montery Jack and white cheddar -- is shredded daily. Ditto for the restaurant's four kinds of salsa. The mild Fresh Tomato Salsa, medium Roasted Chili-Corn Salsa, medium hot Tomatillo-Green Chili Salsa and hot Tomatillo-Red Chili Salsa are made each day. "Our food tastes great not because of what we put in it, but because of what's not in it," Turner said, adding that it has no added hormones or preservatives. "It's real food." Chipotle focuses on "food with integrity," meaning the ingredients it serves do not exploit animals, the environment or people. Items are sustainably grown and naturally raised whenever possible. Beef and pork come from cows and pigs that are raised humanely, vegetarian-fed and not given steroids or antibiotics, Turner explained. In 2008, the chain started using produce from local farms. Items that don't come from local farms still come from family farms, he said, adding that Chipotle supports 6,000 family farms nationwide. The menu is simple, offering just four basic entrees: Burritos, burrito bowls, soft and crispy tacos, and salads. (Quesadillas are also available, even though they're not listed on the menu.) The menu might seem basic, but the combinations are almost endless -- and the diner is in control. Turner compares the line to the setup at Subway. You start at one end and watch your burrito come together, one ingredient at a time. First comes the cilantro-lime rice. Ask for less or more -- or skip it altogether, as desired. Add vegetarian black beans or pinto beans cooked with bacon -- or not. You're still in control. Then, for carnivores, comes the star of the show: A choice of grilled chicken that's been marinated overnight in chipotle-adobo; shredded pork carnitas seasoned with thyme, bay leaves, juniper berries and fresh cracked pepper; Barbacoa beef braised in chipotle-adobo and seasoned with cumin, garlic, oregano and cloves; or chipotle-adobo-marinated steak that's been cooked medium-rare. Next, the toppings: A choice of salsas (you can ask for more than one), shredded lettuce, growth hormone-free cheese and sour cream, and guacamole (can cost extra, depending on your filling -- it's free on vegetarian entrees). The result is a burrito fit for a king -- or a starving teenage boy. This reporter cut hers in half, eating part for lunch and saving the rest for dinner. "We pride ourselves on the fact that you're not going to go away hungry," said Dennis Shull, general manager at the Goodyear Chipotle. He's in town to help get the Flagstaff location up and running. Prices start at $5.95 for vegetarian and chicken entrees; beef and pork entrees are $6.35. Kid's menu items, which include chips and a drink, range from $2.95 to $3.95. Want to jump the line? Order online, by fax or via iPhone app and pick it up in-store. There's a separate area dedicated to filling such orders. "We emphasize that the quality of the food is just as good as if you came in and made it on the front line," Turner said. That's not surprising, given how the folks there feel about their product. "At Chipotle, we are passionate about our food," Turner said. About Chipotle Chipotle Mexican Grill was founded in 1998 by Steve Ells, a classically trained chef whose only goal was to "build a place where you could eat delicious food made of the finest ingredients quickly and affordably." "As it turns out, it was an idea people could get behind," he writes in a letter on Chipotle's website, chipotle.com. He began with one restaurant in Denver. Today, there are more than 1,000 Chipotle restaurants -- including one in England and three in Canada. The Flagstaff location is the 43rd in Arizona. Why Flagstaff? They'd received several requests to come here. There was even a group on Facebook called "Bring Chipotle to Flagstaff." One of the newly hired employees was a member, Kennedy Turner said. All they needed was the right location. They found it just off Milton Road, near the NAU campus and on the well-traveled route through Flagstaff. "We're excited to open," he said. "We think Flagstaff will embrace 'food with integrity.'" IF YOU GO ...
WHAT: Chipotle Mexican Grill
Chipotle in the community Usually, 50 percent of the proceeds from a fundraising event go to the group. But on Saturday, 100 percent of the $2,576 raised went to Flagstaff High School. To organize a fundraiser for your school or group, visit chipotle.com and click on the "company" link at the top of the page. From there, click "philanthropy" on the left side of the page and fill out the form. Chipotle also provides a free lunch to three businesses a week. Drop your business card in the fishbowl at checkout for a chance to win.
Restaurant Hospitality
January 4, 2011
Chipotle Mexican Grill: Beyond The Burrito Founder Steve Ells is at work on a new Asian concept, 2009 James Beard Rising Star Chef of the Year Nate Appleman is rolling burritos at a Chipotle test kitchen unit in New York and you can get breakfast at the Chipotle’s Dulles airport location in Washington, DC. What exactly does this chain have up its sleeve? The founder and leaders of Chipotle Mexican Grill aren’t following the well-worn script perfected by other restaurant developers. Most of the lucky few who have grown their chains to 1000-plus units and seen their stock price go through the roof usually cash in their chips and retire to the good life. Ells has plenty of chips to cash in, but is apparently is more interested in seeing if his company’s “food with integrity†mantra can work in another segment. He’s involved—hands on, by the way—in developing Chipotle’s yet-to-be-named Asian concept. Not much has leaked out about it yet, but Chipotle co-c.e.o. Monty Moran mentioned during a live chat on The Motley Fool web site that “right now, we plan to open one of these (Asian concept) restaurants next year, and we’ll see how it goes.†What’s the thinking behind the Asian venture? “The magic of Chipotle is not tied to burritos and tacos,†Moran said. The magic has to do with great food from sustainable sources, great people who offer a genuine and excellent dining experience, and a great restaurant design that provides a comfortable backdrop for that experience. We believe that model can apply to other cuisines. The Asian concept, which will certainly be based on food with integrity, is our way of testing our belief in that idea.†It’s an idea that appealed mightily to 2007 Restaurant Hospitality Rising Star Nate Appleman, who recently left his post as executive chef at Keith McNally’s Pulino’s Bar & Pizzeria in New York City for a spot at Chipotle’s Chelsea unit in Manhattan, one of the chain’s three test kitchen units. Appleman, who first drew national attention for his renditions of southern Italian cuisine at A16 in San Francisco, blogged about his new job on Zagat.com “I was hired by Steve Ells to work closely with him to improve Chipotle’s already high culinary standards, and to work with the company’s operations and training teams to help elevate cooking techniques through all of its restaurants. Sounds vague, right? Because it is. I’m not sure what this job of the future will hold, but this is one of the most exciting things I have ever been a part of.†He’s also looking for a bigger stage. “While I have been very proud of the work I’ve done—whether it was my commitment to butchering and using the entire animal, or supporting responsible farming—I honestly feel that I have made very little impact. With this new job, I’m a part of an organization that can truly make a difference by serving food with integrity to millions of people, as well as supporting numerous farmers and ranchers that are growing vegetables and raising animals the right way. I’m involved in all of that, right down to being part of the 25,000 Chipotle employees that work their asses off to help change food culture as we know it.†Breakfast at Chipotle would be a culture shift, for sure. Moran told Motley Fool that while the company initially had no real interest in the breakfast daypart, it’s learning to love it. “We serve breakfast at the Dulles Airport location because the landlord required it to get that space. So we thought it was a good opportunity to test a breakfast menu. So far, we’re pleased with how it’s going. “We’re keeping it very simple, adding eggs, potatoes and chorizo, and customers seem to like it. We don’t have any plans to expand breakfast at this time, but we do believe it might provide an opportunity for us down the road. What we’re most pleased with is that we’ve been able to keep the breakfast offering so simple that it didn’t require significant changes to labor or operations, and didn’t complicate things for our customers.†Sounds like it could be a revenue booster to us, at least at many Chipotle locations. The company probably doesn’t need one right now—shares are going for $230 apiece, with a total market capitalization of more than $ 7 billion—but they’ve got it in their pocket if same store sales and/or unit growth ever hit the wall. |
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