Cultivate Festival Three-city culture fest of food, music and brand education draws 25k–40k per event Packaging Cups and bags sport marketing messages or other on-brand content Web series “Farmed & Dangerous” (2014) 908k YouTube views, trailer Responsibly Raised™ adj: Chipotle-trademarked term meaning animals raised humanely without antibiotics or added hormones 5: Number of ingredients (beans, cilantro and more) touted as organic Clean ingredients First national company to voluntarily disclose GMOs in 2013 Open kitchen Nontraditional marketing Family farmers Local 20 million pounds of “local produce” in 2014 TRANSPARENCY SOURCING BRAND STORY Inspired by taquerias of San Francisco’s Mission District Animated short “The Scarecrow” (2013) 13.1 million YouTube views “FOOD WITH INTEGRITY” “… whenever possible” McDonald’s invested $360 million (divested in 2006) 7: Number by which transactions per hour rose in Q1 of 2014 ASSEMBLY LINE “THE CHIPOTLE OF ... ” CUSTOMIZATION ... ASIAN FOOD ● Opened in 2011 ● Fast casual ● Rice and noodle bowls with meatballs, chicken, steak or tofu ● Seven locations ● Coordinates food supply with Chipotle ... PIZZA ● Opened in May 2013 ● Neapolitan pizza in less than 2 minutes ● One FCR in Denver (one FSR in Boulder) ● Partners: Bobby Stuckey, Lachlan MackinnonPatterson Check average: around $9–$10 Increased prices in Q2 due to rising food costs SECRET MENU SIMPLE MENU STEP-BYSTEP MENU BOARDS HIGHQUALITY, FAST FOOD FCR: +11% sales LSR: +3.8% (2013, Technomic) AFFORDABLE FAST CASUAL DESIGN CATERING 1: Percentage of sales (some locations) ALCOHOL EFFICIENT OPERATION BUSINESS MODEL MOBILE $10m: Tech investment Launched premium margaritas and catering in 2013 to boost sales Hired chef Nate Appleman as culinary manager in 2010 1-2: Percentage of sales (some locations) Sofritas (tofu) Tested its first new food item for a year before its March 2014 rollout; now 3% of sales GROWTH STRATEGY “PEOPLE CULTURE” “Restaurateurs” Elite managers who receive additional responsibility/perks CAUTIOUS R&D Slow international growth 13 characteristics of a Chipotle employee: Polite, hospitable, high energy, smart, ambitious, curious, happy, respectful, honest, presentable, conscientious, motivated, infectiously enthusiastic New concepts No franchises