hipotle (CMG CMGChipotle Mexican Grill Inc273. 53-2 12% Made with Highstock 4. 2. 6) can be a Mexican grill restaurant which has a limited menu and a high level of food customization. The restaurant was initially opened in 1993 and currently has over 1,700 stores in U. S. and abroad. McDonald's (MCD MCDMdDonald's Corp. 168.65 + 0.33% Made with main stock 4. 2. 6) had controlling interest in restaurants in the early 2000s but divested after Local Burger Delivery IPO in 2006. Since the IPO, Chipotle's share has increased from $ 42 to around $ 650 and still be considered a long-term investment opportunity.
Motto Chipotle "food with integrity" was inspired by founder Steve Ells who learned all about American food production. Ells is devoted to serving ethically and naturally produced foods, which Chipotle claims produces more delicious meat than some other restaurant. In 2013, Chipotle implemented a no-GMO policy for its materials.
Consumers agree Although higher food costs cause Chipotle to improve prices by 2014, the same store sales grew by 16. 8 percent, store margins rose to 27.2 percent and net income increased by 36 percent. Chipotle opens 192 new stores in 2014 and hopes to open another 200 by 2015.
Why? Because books and documentaries showing the pessimistic in the fastfood industry have become popular, Local Burger Delivery profits are increasing. Consumers who would like balanced diet usually do not order salad at McDonald's and
Wendy's (WEN WENTY Wendy's Co15 02-1 44% Made with Highstock 4. 2. 6), looking for natural foods which might be raised or produced organically. (For more, see: Feed Your Appetite For Chipotle Stock with Options.)
One in the secrets to Chipotle's success is its small menu. The smaller menu has three benefits. First, because Chipotle only stores fresh ingredients, almost always there is the opportunity of food spoilage. The small menu decreases the volume of material required in the hand, thereby decreasing the probability of waste.
Secondly, the tiny menu means fast service. In other fastfood restaurants, your home may be overwhelmed with orders and will make a few mistakes. At Chipotle, the error is actually impossible: order a soft taco, go with a patch and pay. If employees forget to add nuts, consumers watch and will show negligence. Easy and fast and consumers like it.
Finally, the tiny menu includes customers know precisely what is sold when they check out the restaurant. Chipotle need not develop services or make striking to see consumers about its offerings, and rrndividuals are not disappointed with product loss from a trial or promotion period.
It could possibly be belief that the tiny menu is bad: so why do consumers want to limit their choices? Chipotle has thought over it, and also the policy is usually to result in the goods consumers want in the event the ingredients can be found. This policy has led to the development of Quesarito, Chipotle Nachos and many more secret menu items.
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