hipotle (CMG CMGChipotle Mexican Grill Inc273. 53-2 12% Made with Highstock 4. 2. 6) is a Mexican grill restaurant using a limited menu as well as a higher level of food customization. The restaurant was initially opened in 1993 and currently has greater 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 fascination with restaurants in early 2000s but divested after Planters Chipotle Nut Mix IPO in 2006. Since the IPO, Chipotle's share has increased from $ 42 to in excess of $ 650 yet still certainly be a long-term investment opportunity.
Motto Chipotle "food with integrity" was inspired by founder Steve Ells who discovered American food production. Ells is devoted to 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, the same store sales grew by 16. 8 percent, store margins rose to 27.2 percent and net profit increased by 36 percent. Chipotle opens 192 new stores in 2014 and hopes to open up another 200 by 2015.
Why? Because books and documentaries showing the bad side of the junk food industry have grown to be popular, Planters Chipotle Nut Mix sales are increasing. Consumers who desire balanced diet tend not to order salad at McDonald's and
Wendy's (WEN WENTY Wendy's Co15 02-1 44% Made with Highstock 4. 2. 6), seeking natural foods that are raised or produced organically. (For more, see: Feed Your Appetite For Chipotle Stock with Options.)
One of the keys to Chipotle's success is its small menu. The smaller menu has three benefits. First, because Chipotle only stores fresh ingredients, there's always the opportunity of food spoilage. The small menu decreases the amount of material required by the hand, thereby decreasing the odds of waste.
Secondly, small menu means fast service. In other junk food restaurants, your kitchen may be overwhelmed with orders and may get some things wrong. At Chipotle, the error is nearly impossible: order a soft taco, pick a patch and pay. If employees forget to add nuts, consumers watch and may show negligence. Easy and fast and consumers like it.
Finally, small menu does mean customers know exactly what exactly is sold when they check out the restaurant. Chipotle doesn't need to develop new products or make striking to tell consumers about its offerings, and consumers are not disappointed with product loss after a trial or promotion period.
It might be belief that the miscroscopic menu isn't good: how come consumers need to limit their choices? Chipotle has thought regarding it, as well as the policy would be to increase the risk for goods consumers want if your ingredients are available. This policy has resulted in the creation of Quesarito, Chipotle Nachos and others secret menu items.
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