Chipotle does most things right

There are a lot of new low cost restaurants opening along Ventura Boulevard these days. Consumers are searching for value, not extravagance, so restaurants that offer good product, simple ambience and high value are doing well, while the older traditional restaurants look – well - empty. Those new restaurants could learn a thing or two from Chipotle, whose Encino restaurant by Libbit is flourishing, even if parking in that area is hell.

Lately Chipotle’s stock is on the rise. They will survive the embarrassing immigration audit in Minnesota and the bacon in the pinto beans saga. But consider this paragraph from Wikipedia: “A Center for Science in the Public Interest report stated that Chipotle’s burritos contain over 1,000 calories, which is nearly equivalent to two meals’ worth of food. MSNBC Health placed the burritos on their list of the ‘20 Worst Foods in America’ because of their high caloric content and high sodium. When a burrito with carnitas, rice, vegetables, cheese, guacamole, and salsa was compared with a typical Big Mac, the burrito had more fat, cholesterol, carbohydrates, and sodium than the Big Mac, and the burrito had more protein and fiber. The restaurant has also received praise – Health.com included the restaurant in its list of the ‘Healthiest Fast Food Restaurants’.”

So who’s right?

Both, I would say. But, the comparison between a burrito and a Big Mac is unfair – a Chipotle burrito, especially when loaded up, is a whole meal. For me it’s two meals.

The chain appeals to younger socially conscious eaters, including vegans, who can customize their meals if they want to. Chipotle pays market value for high-quality raw ingredients, organics, no hormones or antibiotics, sourcing meats from local open range family farms, sustainable building design, traditional cooking methods and so on. All that for a $6 minimum price (which climbs from there). Better food just costs more.

But, tactically, are they encouraging over-eating? Chipotle profit margins are based on a minimum order, just as Starbucks makes its money on premium drinks and food, not the Pike’s Place drinkers. There is something to be said for their implied message that good food should be priced properly and not by lowering standards. That said, is there a way to scale back the calorie/sodium overload? Posted calorie counts mean nothing when customers go into Chipotle because they WANT to splurge and the calorie counts are hard to total up. Perhaps you can skip the cheese and sour cream but, in the end, customers just have to realize that the one thing healthy and socially conscious restaurant chains will never do is tell you to watch your portions. That’s always going to be up to you.

Photo: Wikipedia/tacvbo