Chipotle Covered in Wall Street Journal

greg's picture

More on Chipotle marketing and business operations based on coverage from the Wall Street Journal.

My favorite bit of quotes:

Chipotle Mexican Grill has arguably become the country’s most successful fast-food chain in recent years by rejecting almost every major technique on which the industry was built. Not only does it not show the product, it doesn’t advertise on television. It doesn’t franchise. It has some of the highest ingredient costs in the industry. And its executives aren’t especially concerned that customers wait as long as 10 minutes in lines that routinely stretch out the door.

That’s classic “disruptive technology”. Most executives at “QSR” (quick serve restaurants) would have ignored Chipotle in 1993 dismissing it as too slow, too expensive, tiny margins and perhaps they still do today. Now it is a major competitor that Wendy’s and Jack In the Box (Baja Fresh and QDoba respectively) are trying—and failing—to copy.

Another interesting statistic:

The chain has videotaped as many as 50 people walking away from a single location in one hour because they weren’t willing to wait.

Given that they serve 100 people per hour during peak times, that is a real problem: a 50% decrease in sales during that time. I can only guess this is what has lead to chipotle delivery.

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