{"id":4751,"date":"2015-02-11T10:37:02","date_gmt":"2015-02-11T10:37:02","guid":{"rendered":"http:\/\/newsroom.chainstoreguide.com\/?p=4751"},"modified":"2015-02-11T10:37:02","modified_gmt":"2015-02-11T10:37:02","slug":"good-things-come-in-small-packages","status":"publish","type":"post","link":"https:\/\/www.chainstoreguide.com\/offthechain\/2015\/02\/good-things-come-in-small-packages\/","title":{"rendered":"Good Things Come In Small Packages"},"content":{"rendered":"

On February 3, 2015, Chipotle reported its full year end earnings report. To no one\u2019s surprise, the company reported an increased revenue of 27.8%, raising its year-end sales from $3.21 billion in 2013 to $4.11 billion. In the fourth quarter alone, revenue increased \u00a026.7% to $1.07 billion from the same quarter in 2013. Comparable restaurant sales increased 16.8%, the net income was $445.4 million, an increase of 36.0%, and it opened 192 stores, making the total store count almost 1,800.<\/p>\n

In the press release co-CEO Steve Ells states, \u201cConsumer trends are changing, which we believe is a great result of people becoming more discerning about where their food comes from, how it was raised, and how their meal was prepared. The continued loyalty we see from our customers, as well as third party research, and the growing number of concepts imitating Chipotle, all point to the relevance of our vision and the impact we are having on food culture. We are delighted to see that this vision, a very lofty goal, is becoming a reality.\u201d<\/p>\n

So what\u2019s next for America\u2019s favorite Mexican restaurant? Think small, \u201creally, really really small.\u201d In July, Ells hinted that the company was looking into a smaller format, but now it seems as though that small format is soon to become a reality. The company expects to open 4,000 <\/em>smaller format stores. This would bring the total store count to almost 6,000. These stores wouldn\u2019t be the typical format with the expected Chipotle atmosphere. Instead, it will be completely take out and will populate real estate in locations that weren\u2019t possible before (i.e. malls and other crowded locations).<\/p>\n

The concept was inspired by the Chipotle\u2019s in Europe, which have to be smaller because they are usually in larger crowded cities. Not only will the stores be smaller and take out only, but it is also expected to be much cheaper to operate.\u00a0 For those wanting to open their own Chipotle, the initial investment will be much lower than the typical $800,000 of normal stores. The new \u2018A model\u2019 won\u2019t be able to handle the high traffic of regular stores or make as much money, but it is expected that the new locations will be just as successful.<\/p>\n

While some see this plan as risky on Chipotle\u2019s part, the management team believes that Chipotle has a highly reputable reputation and is sufficiently well known among consumers to be able to sacrifice the in-house dining experience. Co-CEO Steve Ells has also been quoted as accusing other fast food restaurants of trading quality for quantity and making \u201cshort sighted\u201d decisions. Time will only tell if this new venture will be a slippery slope or the chance to make Chipotle even more of an American staple.<\/p>\n

Ten Year Store Count*<\/span><\/strong><\/p>\n

\"Chiptle\"<\/p>\n

*Source<\/strong>: Chain Store Guide Chain Restaurant Operators<\/em><\/a> Database.<\/p>\n","protected":false},"excerpt":{"rendered":"

On February 3, 2015, Chipotle reported its full year end earnings report. To no one\u2019s surprise, the company reported an increased revenue of 27.8%, raising its year-end sales from $3.21 billion in 2013 to $4.11 billion. In the fourth quarter alone, revenue increased \u00a026.7% to $1.07 billion from the same quarter in 2013. Comparable restaurant… Continue reading Good Things Come In Small Packages<\/span><\/a><\/p>\n","protected":false},"author":10,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"post-template-no-sidebar.php","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[12],"tags":[5],"class_list":["post-4751","post","type-post","status-publish","format-standard","hentry","category-commercial-real-estate","tag-insight","entry"],"acf":[],"_links":{"self":[{"href":"https:\/\/www.chainstoreguide.com\/offthechain\/wp-json\/wp\/v2\/posts\/4751","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.chainstoreguide.com\/offthechain\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.chainstoreguide.com\/offthechain\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.chainstoreguide.com\/offthechain\/wp-json\/wp\/v2\/users\/10"}],"replies":[{"embeddable":true,"href":"https:\/\/www.chainstoreguide.com\/offthechain\/wp-json\/wp\/v2\/comments?post=4751"}],"version-history":[{"count":0,"href":"https:\/\/www.chainstoreguide.com\/offthechain\/wp-json\/wp\/v2\/posts\/4751\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.chainstoreguide.com\/offthechain\/wp-json\/wp\/v2\/media?parent=4751"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.chainstoreguide.com\/offthechain\/wp-json\/wp\/v2\/categories?post=4751"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.chainstoreguide.com\/offthechain\/wp-json\/wp\/v2\/tags?post=4751"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}