Perhaps this was what was working for Chipotle because it began expansion soon after the first location took off. The company served delicious, large-sized burritos, made using the best, fresh ingredients, and most of the items still remained under $5 (Yes, really!). In San Francisco, Ells had seen wondrously high prices on slim, unfulfilling burritos, and strived to make his food different. Through observation and vigilance, Ells was able to create a thriving burrito business, that he did not know would turn into so much more, had he not taken the leap. Regardless of the dire financial circumstances, Ells kept his eye on his final goal, the restaurant, and in the meantime, grasped a viable business opportunity that came his way – Chipotle.įrom the get-go, he had a financial plan drawn and knew just enough cash flow required to turn profitable, repay liabilities, and generate capital over time to materialize his dreams of a high-end eatery. But the lack of funds meant only a small, Mexican-food business could initiate and prosper. The founder, Ells, desired to open a high-end restaurant. Many can argue that the establishment of Chipotle was merely by chance. Takeaway 1: Be Vigilant For Entrepreneurial Opportunities. Then, come September, the opening of the University for the fall semester resulted in a massive turnover.Ĭonsequently, after one month only, Chipotle was selling 1000 burritos a day, and generating unforeseen profits! This also meant Ells was able to repay his father in a few months. The business was located near the University of Denver, making students a prime target audience.Īs Ells states, the initial sales were about $240, and then they began to grow by the day as the deliciousness of the burritos traveled through word of mouth. Therefore, the selection of the location for Chipotle had been carefully thought out. He calculated the need to sell 107 burritos every day to be able to generate enough profit that he could repay his father’s debt. 1000 Burritos A Day!Įlls had a plan from the beginning. However, since the loan was not enough to create a high-end restaurant, this enterprise was to be merely a side hustle for Ells, a stepping stone on his journey to his restaurant in the U.S. There, the food wasn’t as popular yet and therefore there was a gap in the market and less to no competitors.Įlls took a loan worth USD $85,000 from his father and opened the Chipotle Mexican Grill in what was formerly an ice cream parlor at East Evans Avenue. Ells Opens The First Chipotle in DenverĬonsidering San Francisco was full of taquerias, Ells decided to move to Denver, Colorado. Leveraging his observation into opportunity, he knew just what he needed to generate capital – a Mexican-food business. However, during his work, he observed the growth of taco stands and burritos in San Francisco by the day.īy 1993, he realized he did not want to work for anybody but instead open his own restaurant. When he graduated, he put his passion into action by working as a sous chef in Stars restaurant under the famous Jeremiah Tower. As soon as he realized his love for food could mean much more for his career, he went on to pursue the culinary arts at the Culinary Institute of America. The story of Chipotle Mexican Grill, commonly known as Chipotle, began with its food-loving founder – Steve Ells.Įlls had always been a foodie. However, its journey and the crucial decision-making behind it remains nothing less than inspiring.ĭo you want to know how Chipotle rose to the fame it has today? Munch on a burrito and read on as we take you back to the ‘90s, and eventually get you caught up with the company’s progress today. 2,768 total restaurants, including 149 in New York alone.įrom a staggering rise to a complete slump and then a boom again, the business cycle of Chipotle Mexican Grill has been fluctuating throughout.A net income of 355.8 million USD in 2020.Nearly 6.0 billion USD in annual worldwide revenue in 2020.However, it has managed to create a name for itself with over 2,700 branches, second only to the Mexican food mammoth, Taco Bell.Ī few statistics that depict the size and stature of Chipotle Mexican Grill are as follows: Within a month, however, the burritos were flowing off the rack, with more than 1000 sold every day!Īs the pioneer of "fast-casual dining", this food chain has had an exhilarating journey, full of ups and downs. Its founder calculated that the business needed to sell 107 burritos a day to remain profitable. Originating in California, Chipotle Mexican Grill serves tacos, burritos, salads, and more. But did you know that this mega fast-casual chain was merely born in 1993 – less than 30 years back? Serving all things Mexican, Chipotle Mexican Grill is a household name in the U.S.
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