Chipotle went from a one unit operation in 1993 to almost sixteen hundred in 2014. It offers a limited menu of high-quality fast food in upscale restaurants. By only offering a limited menu Chipotle has taken on the strategy to keep it simple and do a few things exceptionally well. They do not include menu items such as coffee or desserts, therefore not complicating operations or creating any inefficiencies. By implementing the strategy of keeping it simple with limited items, they can concentrate on the source of each ingredient and use top qualities ingredients. .
Chipotle also believes their front line is critical, so most restaurants are designed to allow the majority of personnel to be up front and able to interact with customers. The layout of the restaurant also enables customers to see employees preparing food, therefore reinforcing the idea of high-quality fresh ingredients. They offer excellent opportunities for employee advancement and also cross-train employees so that they can work at more than one station. .
With the strategy of providing high-quality ingredients, Chipotle does face some challenges. They have a short list of approved vendors and on occasion, there has been a shortage of quality ingredients. When Chipotle had to serve conventional meat rather than naturally raised animals they did change the signage so customers were aware and could make choices. If customers are coming to Chipotle because of the higher quality food and that quality food is not offered 100% of the time they will start going elsewhere. .
The fast-casual type of restaurants is the fastest growing restaurant category in the recent year creating an excellent opportunity for Chipolte to expand even more. There has been a steady increase in traffic at fast casual restaurants since 2010 compared to a flat rate in the same period at quick serve restaurants. .
Many restaurants are offering Mexican food, with the leading fast food chain being Taco Bell.
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