Chipotle Analysis

Starting from scratch has honestly become Chipotle’s standpoint, causing great celebration for the owner. Steve Ells graduated culinary school and desired to open up a restaurant. Although he felt like this one store would be the bulk seller for his mainstay business, nobody had any idea that offering up such a simple concept would make him a lot of money. Because of the little amount of items on sale, the small cost to open the business and keep it running, Steve became surprised when he did realize how this single business became so replicable. Today Chipotle has close to 2,000 businesses and over 45,000 employees.

What is exceptional is how this business has been able to bulk so much cash flow. Steve says, “The money for my first restaurant came from my dad; the second from mostly cash flow; the third from an SBA loan.” In his first year, Steve Ells’ business survived grossing 1.8 million dollars. Nowadays Chipotle earns about a billion dollars each quarter.

Opening his first store, his goal was to make 114 burritos each day. But really soon he began seeing a profit, making 3,000 to 4,000 dollars daily with one store. Soon after noticing a profit he opened a second store, both of these locations in Colorado. Fostering his idea behind the burritos he would see and eat at culinary school in San Francisco, Steve Ells was questioned behind his idea of keeping his meats down to three items. He did decide that he would leave the original menu the same.

Even the ideas behind some of the stores he originally opened is what caused the mainstay of Chipotle culture. His second store came from a pie bakery, and they have an assembly line already manufactured in the store from the previous owner. So Steve decided to go with that, making the display line and assembly the mainstay at each of his stores now.

The mission of the business that causes it to be such a success is Eating Food with Integrity. Becoming such a farmer primarily, suggesting the natural meats...