A letter from America
US burrito chain Chipotle Mexican Grill’s story is a
turbo-charged version of Barburrito. Started in 1993
by Steve Ells, it has been the American food sector’s
supreme challenger brand. Ells’ lightbulb moment
came in a San Francisco burrito bar. He noted the
speed large queues were served at, without quality
being compromised.
In 2011, it made sales of $2bn, with 1,400 stores
across 43 states. Ells was named the country’s most
admired CEO by Esquire. Where national giant Taco
Bell appealed on super low-price, he majored on
quality and freshness. Chipotle paid staff more than
minimum wage. Fast food giants now ape the look
of Chipotle’s restaurants, which are said to boast
operating margins of over 25%.
ONSIDE WINTER 2016 |
Not enough of an outsider to refuse the heavy
backing of McDonalds Corporation in the early years,
Chipotle went public in 2006, quickly becoming
a Stock Market darling. That has cooled, but Chipotle
still opens around 200 stores a year. US trade titles
have cooed over Chipotle’s bringing assembly line
ethos to the service sector while raising quality,
with current affairs magazine Slate calling the brand
“The Apple of food”. No pressure, Morgan.
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