hipotle (CMG CMGChipotle Mexican Grill Inc273. 53-2 12% Made with Highstock 4. 2. 6) is a Mexican grill restaurant having a limited menu and a higher level of food customization. The restaurant was 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 desire for restaurants during the early 2000s but divested after What Restaurants Deliver Here IPO in 2006. Since the IPO, Chipotle's share has increased from $ 42 close to $ 650 whilst still being 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 dedicated to serving ethically and naturally produced foods, which Chipotle claims produces more delicious meat than another 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, the identical 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 another 200 by 2015.
Why? Because books and documentaries showing the negative side from the fast food industry have grown to be popular, What Restaurants Deliver Here sales and profits 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), looking for natural foods that are raised or produced organically. (For more, see: Feed Your Appetite For Chipotle Stock with Options.)
One from the recommendations for 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 cuts down on level of material required in the hand, thereby lowering the probability of waste.
Secondly, the little 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 error is practically impossible: order a soft taco, select a patch and pay. If employees forget to add nuts, consumers watch and may show negligence. Easy and fast and consumers find it irresistible.
Finally, the little menu includes customers know exactly what's sold should they check out the restaurant. Chipotle doesn't have to develop new items or make striking to inform consumers about its offerings, and people are not disappointed with product loss after a trial or promotion period.
It could be considered that the miscroscopic menu isn't good: exactly why do consumers want to limit their choices? Chipotle has thought about this, as well as the policy is usually to result in the goods consumers want in the event the ingredients are available. This policy has resulted in the development of Quesarito, Chipotle Nachos and others secret menu items.
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