hipotle (CMG CMGChipotle Mexican Grill Inc273. 53-2 12% Made with Highstock 4. 2. 6) is a Mexican grill restaurant which has a limited menu plus a high level of food customization. The restaurant was initially opened in 1993 and currently has more than 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 early 2000s but divested after Lunch Food Delivery Business IPO in 2006. Since the IPO, Chipotle's share has risen from $ 42 to in excess of $ 650 yet still be considered a long-term investment opportunity.
Motto Chipotle "food with integrity" was inspired by founder Steve Ells who found out about American food production. Ells is focused on serving ethically and naturally produced foods, which Chipotle claims produces more delicious meat than any other restaurant. In 2013, Chipotle implemented a no-GMO policy for its materials.
Consumers agree Although higher food costs cause Chipotle to boost prices by 2014, a similar store sales grew by 16. 8 percent, store margins rose to 27.2 percent and net gain increased by 36 percent. Chipotle opens 192 new stores in 2014 and hopes to spread out another 200 by 2015.
Why? Because books and documentaries showing the pessimistic with the fast food industry are becoming popular, Lunch Food Delivery Business sales and profits are increasing. Consumers who want appropriate food choices 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 can be raised or produced organically. (For more, see: Feed Your Appetite For Chipotle Stock with Options.)
One with the recommendations for Chipotle's success is its small menu. The smaller menu has three benefits. First, because Chipotle only stores fresh ingredients, often there is the potential of food spoilage. The small menu decreases the quantity of material needed in the hand, thereby decreasing the possibility of waste.
Secondly, small menu means fast service. In other fast food restaurants, the kitchen could be overwhelmed with orders and may make a few mistakes. At Chipotle, the mistake is nearly impossible: order a soft taco, select a patch and pay. If employees forget to provide nuts, consumers watch and may show negligence. Easy and fast and consumers love it.
Finally, small menu entails customers know exactly precisely what is sold if he or she visit the restaurant. Chipotle does not need to develop new services or make striking to share with consumers about its offerings, and individuals are not disappointed with product loss after having a trial or promotion period.
It could be considered that the tiny menu is not good: exactly why do consumers want to limit their choices? Chipotle has thought regarding it, along with the policy is usually to increase the risk for goods consumers want when the ingredients are available. This policy has led to the creation of Quesarito, Chipotle Nachos and others secret menu items.
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