When talking about famous Mexican restaurants. Many people are familiar with Taco Bell, whose owner is Yum! Brands, owner of famous fast food brands Pizza Hut and KFC, but did you know that Yum! Brands is now worth less? A Mexican restaurant chain with 2,622 branches in the United States called Chipotle Mexican Grill (Chipotle).
Who is Chipotle? What makes the owner of this restaurant chain even bigger?
The story of this restaurant It started in 1993, its founder is Steve Ells, a former chef assistant at an upscale San Francisco restaurant. Who decided to open a small Mexican restaurant of his own in Denver, Colorado, USA
The store became popular less than a month after it opened. As he expected to sell only 100 burritos a day, it turned out to sell as many as 1,000 a day.
Interestingly, in 1998, McDonald’s, a famous fast food chain. Was also interested in investing in Chipotle stores as well.
This allowed Chipotle to rapidly expand from 14 stores to nearly 500 in seven years, until McDonald’s fully divested itself from Chipotle in 2006
But before it was as successful as today, Chipotle also had a period of depression.
The point is, the food in the Chipotle shop was found to contain E. coli bacteria. Which is the cause of serious food poisoning That led to a big drop in Chipotle’s sales from 2015 to 2018. This happened Even so, founder Steve Ells had to decide to resign as CEO.
But it was like a hero on a white horse came to the rescue when former Taco Bell CEO Brian Niccol decided to take over as the new CEO.
Brian came to help control the story. Hygiene of raw materials and improved the chipotle design to be more standardized. Brian’s experience with running Mexican restaurant Taco Bell has enabled him to restore Chipotle’s reputation and popularity once again. Since Mr. Brian took the position The value of Chipotle’s current company is 183% more than its slump.
At this point, many of you may have wondered what good Chipotle is in making it possible to make a successful comeback. So what sets Chipotle apart from other Mexican eateries?
The first point is that Chipotle is more focused on ingredients than regular fast food stores, such as meats that are free of hormones and antibiotics. As for the vegetables used, they must be organic vegetables. No genetic modification And both meat and vegetables must not add preservatives Thus consumers can be assured of the food quality of the restaurant And meet the needs of people who love health.
The second point is the food menu. Did you know that Chipotle has only four main menus:
All four of these use ingredients that are similar, vegetables, rice flour, meat and rice, but they differ in the layout of various menus.
Having a small menu saves Chipotle from having to stock a lot of ingredients. And easy for consumers to remember too Which is essential to all menus Is to focus on the original taste, authentic Mexican food While other restaurants, such as Taco Bell, are changing to give Mexican food a more American taste, known as Tex-Mex (Texan-Mexican) cuisine.
Chipotle currently has 2,622 U.S. branches and 31 overseas, all of which Chipotle operates independently, while Taco Bell is a more franchised model.
Which manages all branches by the brand owner himself Will be able to control the food quality and service of the restaurant More convenient and thorough than the franchise model
So how well did Chipotle earn?
2017: revenue of 4.6 billion dollars, profit of 182.6 million dollars.
2018, revenue of 5 billion dollars, profit of 183 million dollars.
2019, revenue of $ 5.8 billion, profit of 363.1 million dollars.
Or accounted for the average annual growth of 12% annual income
This further raises the expectations of investors. The value of Chipotle’s company has increased to $ 33 billion dollars. This is higher than Yum! Brands, owner of Taco Bell, Pizza Hut and KFC, who are valued at about $ 30 billion dollars.
Chipotle’s story is a good case study. Even if it is a fast food restaurant or fast food It doesn’t mean customers have to have a fast food experience. Is the focus on speed But food quality may not always be good.
Steve Ells once said
“Food served fast doesn’t have to be a traditional fast-food experience.”