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Essay about An Inside Look at Chipotle

Decent Essays
In 1993, the first Chipotle Mexican Grill restaurant (pronounced chi-POAT-lay) in Denver, Colorado was opened by CEO and founder, Steve Ellis after he received $165,000 in investments from a bank loan and his father (Pederson). Ellis, a Culinary Institute of America grad and former chef, started the company’s first restaurant to raise money needed to one day operate his own full-service restaurant (Berta). The company’s menu includes burritos, tacos, salads and burrito bowls (burritos without the tortilla) made with customers’ choices of pork, shredded beef, chicken, steak, beans, veggies, and burrito condiments (sour cream, salsa, etc.) (annual report). When Chipotle was first established, Ellis did not like the restaurant’s closed…show more content…
During his visit, Ellis learned that raising livestock without traditional farming practices produces better tasting meat. After discovering this, Ellis wanted to serve food to customers within his restaurants that are only organically produced by suppliers who conduct humane sustainable practices with their animals. The growing concern for where the company food comes from and how suppliers grow their livestock and crops caused Ellis to create the company’s philosophy “Food with Integrity” to guide future company operations. However, the company quest for having a higher quality of food comes at a higher cost in food supply. In order to offset these costs, Chipotle raised the price of some of their meat items by $1 or $2 (Pederson).. Sales continued to rise to a total of $131.6 million besides the sudden price hike because customers could taste difference in their food and loved how the company changed their recipe. In 2005, McDonalds decided to sell their stake in Chipotle and focus on their core business operations. The next year, the company became public and sold 7.88 million shares on the New York Stock Exchange (Pederson). Since ending their relationship with McDonalds, the company has been able to open over 800 stores including one Toronto, Canada during the year 2008. Expansion of new stores caused sales in 2009 to increase 14 percent to $1.52 billion and
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