hipotle (CMG CMGChipotle Mexican Grill Inc273. 53-2 12% Made with Highstock 4. 2. 6) is a Mexican grill restaurant having a limited menu as well as a high level of food customization. The restaurant was 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 fascination with restaurants in the early 2000s but divested after Raspberry Jalapeno Sauce Over Cream Cheese IPO in 2006. Since the IPO, Chipotle's share has increased from $ 42 to around $ 650 but 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 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 raise prices by 2014, a similar 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 start another 200 by 2015.
Why? Because books and documentaries showing the bad side of the take out industry have become popular, Raspberry Jalapeno Sauce Over Cream Cheese profits are increasing. Consumers who desire balanced diet 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 of the secrets of Chipotle's success is its small menu. The smaller menu has three benefits. First, because Chipotle only stores fresh ingredients, often there is the possibility of food spoilage. The small menu cuts down on volume of material required by the hand, thereby lowering the chance of waste.
Secondly, the small menu means fast service. In other take out restaurants, the kitchen could be overwhelmed with orders and may make mistakes. At Chipotle, larger than fifteen is practically impossible: order a soft taco, go with a patch and pay. If employees forget to include nuts, consumers watch and may show negligence. Easy and fast and consumers like it.
Finally, the small menu also means customers know exactly what exactly is sold when they check out the restaurant. Chipotle doesn't need to develop new items or make striking to inform consumers about its offerings, and people are not disappointed with product loss from a trial or promotion period.
It might be considered that the tiny menu is detrimental: exactly why do consumers desire to limit their choices? Chipotle has thought regarding it, as well as the policy is always to result in the goods consumers want when the ingredients can be purchased. This policy has led to the development of Quesarito, Chipotle Nachos and many more secret menu items.
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