took the initiative to break up with McDonald s, a willful fast food brand with an annual revenu

Mondo Finance Updated on 2024-01-31

This is a fast food brand that has been evaluated for "making countless mistakes by the standards of the restaurant industry", Chipotle. It spends too much money on food. Selfridge, Chipotle's former chief operating officer, once said that the company's food costs were comparable to those of a high-end restaurant, and McDonald's, Chipotle's shareholder, would say "Oh my God, why are you paying 30 to 32 percent of the cost of food?"It's ridiculous."

McDonald's was a shareholder of Chipotle ***nation's restaurant newsIt insists on preparing fast food without freezing food. Chipotle, which has become synonymous with burritos, claims to have been born out of a radical belief that there is a link between how food is raised and prepared and the taste of food. Chipotle said on its website that there were no freezers, microwaves or can openers in the restaurant. Even if there has been a negative impact from foodborne illness outbreaks in stores, brands continue to reduce food safety risks by not replacing fresh food with frozen and canned foods.

chipotle products *** chipotleIts menu is short, but it's highly customized. Chipotle hardly adds new products. Consumers can choose the type of staple food, ingredients, vegetables and sauces of the product, and can also decide the size of the product. It also shouts to consumers: "We only use 53 ingredients that you can pronounce". The brand jokes that the only thing that is difficult to pronounce on chipotle is "chipotle" (author's note: chipotle is pronounced chih-poat-lay).

Obama ordered food at Chipotle when he was in office in the United States***twitter@petesouzaIt doesn't make breakfast, it doesn't do drive-throughs. Selfridge mentions: "McDonald's has a lot of good advice and we're always polite. They really wish we could drive-throughs. They really wanted us to make breakfast. But we really didn't. ”However, it is such a fast food company, with a share price of 400% in the past five years, 200% revenue in the past two decades, and a total revenue of US$8.6 billion (over 61 billion yuan) in 2022. [2]

200% Wall Street in revenue over the past two decades Currently, Chipotle has more than 3,300 restaurants in the U.S., Canada, the U.K., France, and Germany, and has also been named to Fortune's 2023 Most Admired Companies and Time Magazine's Most Influential Companies list.

Chipotle Store***Frontier BuildingOver the past decade, Chipotle has faced the impact of food safety scandals, COVID and inflation, but sales have grown. Wall Street analyzes it in the series "How the World's Most Successful Companies Generate Revenue". The New York Times said that "there are not many commercial success stories that can match the Chipotle Mexican Grill," ......So what's so special about this brand?

Chipotle's founder, Steve Ells, graduated from the Culinary Institute of America in 1990 and moved to San Francisco to work as a sous chef at the legendary restaurant Stars. The restaurant's emphasis on fresh ingredients and open kitchen style also had a subtle influence on Ells' future fast food. It was also during his time in San Francisco that Ells fell in love with burritos and discovered the potential of Mexican fast food restaurants. In 1993, Ells opened its first Chipotle store in Denver, Colorado.

In front of its first Chipotle branch, Chipotleells said the restaurant made a few hundred dollars on its first day of opening and doubled its revenue the next day. A review published by the Rocky Mountain News shortly after the opening pushed the restaurant to achieve **1,000 burritos per day. Chipotle, who "became an overnight success", quickly surpassed the $24,000 first-year profit target set by ELLS. In just four years, Ells has captured the Denver area, owning 14 Chipotle stores and generating between $14 million and $18 million in annual revenue. [3] But if Chipotle wanted to grow, it needed a bigger investor. At the invitation of a friend who is in charge of McDonald's business development, Ells brought Chipotle's products to a McDonald's board meeting. The food was immediately welcomed by the board members, and Chipotle received a $50 million investment from McDonald's. As a restaurant giant, McDonald's has helped the brand improve its capital, distribution system, real estate expertise, construction knowledge, talent and organizational structure, and the number of Chipotle stores has increased to about 500 in 2005. Stupp, the former head of social networking at Chipotle, said: "I think McDonald's helped us understand what it's like to run a bigger chain, which is something we couldn't really figure out before. [1] By January 2006, Chipotle was listed on the New York Stock Exchange. Its share price doubled on the first trading day. In response, Thomson Financial said that this performance recorded the best opening day increase for a U.S. IPO since 2000. [4]

Chipotle is listed on the New York Stock Exchange, and everything seems to be going exceptionally well on the New York Stock Exchange, but Chipotle wants to "break up" with McDonald's. Moran, the former CEO of Chipotle, revealed that Chipotle franchised eight restaurants at the request of McDonald's, which was an uncomfortable time for Chipotle. Eventually, the company had to spend a fortune to buy the shares of these franchisees. Even, Chipotle directly did not accept McDonald's business proposals. Paull, the former CFO of McDonald's, revealed in an interview: ".Chipotle's founder, Steve Ells, wasn't the most popular man at McDonald's headquarters, and he rejected everything we hold dear — drive-thrus, advertising, conspicuous store layouts. [1] Speaking about his relationship with McDonald's, Arnold, Chipotle's former director of communications, made an analogy. He thinks McDonald's is a wealthy uncle and Chipotle is a grumpy nephew. The nephew is grateful for the money, but he is stubborn and strong-willed, and will use it for what he wants to do no matter what. Chipotle doesn't want to be Mexico's version of McDonald's. Eventually, Chipotle and McDonald's "broke up peacefully" in 2006. Over a seven-year period, McDonald's invested about 3$600 million, and finally got $1.5 billion. [5] At the time, the decision to take a stake in McDonald's** was widely regarded as a bad one. After becoming independent again, Chipotle, already a publicly traded company, quickly tripled its number of stores and expanded overseas, establishing itself in the fast-food sector. At the same time, Chipotle began to strengthen its image of independence. Even at the Chipotle Cultivate Festival, a festival of popularity**, food, and creativity, the brand also released a message that read, "No, Chipotle is not owned by McDonald's. Poster.

Chipotle Cultivate Festival***Chipotleells said: "Eventually we found ourselves very different from McDonald's. A different approach was taken on two major matters. One is the way we treat food, and the other is how we treat culture. In his opinion, these two differences are also the reason for Chipotle's success.

Ells, the founder of Chipotle, has saidThe problem with most fast food is not the speed, but the food. Chipotle's mission is to change the way the world thinks about fast food and how it is eaten. [5] As a brand that focuses on freshness, Chipotle does not use frozen foods, and its products contain no artificial flavors, colors, or preservatives. The company was also one of the first national food and beverage brands to commit to the goal of local, organic produce. However, as Chipotle has grown, it has become difficult to maintain its features. For example, Chipotle sources beef, pork, and chicken raw meat instead of using highly processed frozen foods like other fast-food restaurants. Once not handled properly, harmful pathogens can multiply. Brands also consume large amounts of coriander, but E. coli can hide in the many nooks and crannies of coriander leaves. How can you keep it safe while keeping it fresh?Chipotle has designed a food safety process. First, chipotle was implemented** Business Intervention Program。On the one hand, enterprises implement strict food safety standards that are higher than regulatory requirements for raw material suppliers. Chipotle, on the other hand, provides food safety funding and training to local growers to meet the brand's food safety standards. Secondly, enterprise useMore advanced process technology to prepare food. By using the sous-vide cooking process, brands put food in vacuum-sealed packages and heat them at low temperatures for a long time, thus effectively controlling harmful bacteria. The brand says its sous-vide cooking process is being advanced under continuous inspections by the U.S. Department of Agriculture, along with complex data to monitor. The restaurant also adds a blanching step to the processing of ingredients, such as diced jalapeño peppers, to reduce bacteria. In addition to strengthening the food handling and surface disinfection procedures in the restaurant, doing a good job in food safety certification, employee health checks, and restaurant inspections, Chipotle has also carried outTraceability plans。It is understood that Chipotle is one of the first restaurants in the United States to use an electronic system to track products from ** merchants to each restaurant. This electronic system tracks ingredients at the batch level, knowing where specific ingredients are at a specific time and where they have been, helping to quickly and thoroughly investigate and take action on food safety and quality issues. By 2016, Chipotle had also established a Food Safety Advisory Committee comprised of industry-leading food safety experts to supplement in-house expertise with independent external guidance. "The problem with fast food is not the speed but the food", in addition to food safety, Chipotle also focuses on the experience of food. Unlike regular fast food brands, Chipotle set up "fast casual"The brand positioning allows consumers to get a higher service experience than fast food in a full service restaurant. Since consumers are tired of having to choose between getting service and getting cheap**, Chipotle helps them strike a new balance. Next, we can come together to immerse ourselves in the customized ordering. Chipotle's menu is very short, with only four main products: burrito, bowl, taco, and salad, but there is a lot of room for customization.

Chipotle main product range is small***Fast Food When you enter through the gate, there is a road that leads directly to the ordering area, and sometimes, this road is even separated from the "dining area" by a small short wall.

The way to the ordering area***Foursquare enters the ordering line, the first thing you choose is the type of product, and the clerk will take a tortilla for your burrito, or a bowl for the salad. The clerk will then move to the side in parallel and ask you what kind of protein you want (beef, chicken, pork, barbecue, tofu, vegan). After that, your food may be handed over to the next employee or staff members to complete the subsequent selection of different rices, beans, sauces, side dishes, and drinks. If you want to adjust the amount of a particular ingredient, there are three more degree options.

From the perspective of this picture, the clerk will guide you to select ***medium from right to left, and after everything is selected, there will be a clerk who will pack your food and check out for you at the checkout counter, and if the store is particularly busy, the cashier may also ask you what you ordered. At this time, just tell them your protein choice + product type + additional ingredients to calculate the amount, and you don't have to worry about reciting all the added ingredients. After that, you can go into the dining area and enjoy it or take it away.

chipotle products *** chipotleChipotle's "customization speed" is also the envy of many restaurant chains, which does not reduce throughput or the speed at which people move through the line. At the same time, for Chipotle, the positioning of Fast Casual does not bring particularly high labor costs, which also helps to make a profit. Crumpacker, the former chief marketing officer of Chipotle, once saidMost large fast food companies are not food companies, but marketing companies. If the company's economic model relies on sourcing very cheap ingredients and making food outside the restaurant that can be reheated, it's hard to change. [1] In his opinion, there will be new companies that will slowly replace other brands with the right economic model and the right ingredients. Chipotle is also quietly changing the world's perception of fast food.

Chipotle, known as the "consumer champion through the cycle" in the industry, has always had its own insistence: not accepting McDonald's advice, taking the initiative to "break up" with McDonald's, not using frozen food, and pursuing fresh customization. This "wayward" fast food brand, with the determination to change the world's perception of fast food and the way it is eaten, has created a special fast food empire.

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