Why is Chipotle on the Rise? (2024)

Why is Chipotle on the Rise? (2)

Chipotle is not a stranger when it comes to successful fast food chain restaurants. Although Chipotle was founded in 1993, the popularity of Chipotle is at the highest in current times. What is causing the sudden rise in popularity? I personally never went to Chipotle as a child, let alone knew what it was until more recently. Suddenly I find myself frequently spending most of my money at this restaurant. Not to brag or anything, but I currently have over 4,874 Chipotle points, which, if you do not use the app, means I currently have an addiction. Chipotle gives you 10 points for every dollar spent as said on the website. On average you will spend around 12 dollars at Chipotle per bowl/burrito giving you around 120 points for one order. As an avid Chipotle goer, this topic means a lot to me because I know that I enjoy this restaurant, and I want to know why other people enjoy it as well.

Is Chipotle actually healthy for you? This question is not uncommon when linked to Chipotle. Chipotle prides themselves on serving fresh ingredients made everyday. This fact appeals to many because Chipotle is a convenient way to get food fast in a healthier way than most other fast food places. I have seen many of their advertisem*nts show up on my various social media accounts. In most of their advertisem*nts they point out how fresh and healthy their ingredients are. Chipotle even offers “Lifestyle Bowls” which are bowls that you do not have to build yourself but are considered health bowls with all of the essential proteins, fats, greens, etc. Recently I saw an advertisem*nt for how Chipotle makes one of their most famous ingredients, their guacamole. In the video there is a Chipotle worker showing you how the guacamole is made from scratch. The video uses appealing imagery and artistic shots to keep the viewer engaged with the content. Another advertisem*nt that they used to help show how fresh their ingredients are was a picture with their slogan “Food with Integrity’’ alongside the breakdown of some of their products. The advertisem*nt states, “We prepare our delicious ingredients simply, using classic cooking techniques, without added sugar, artificial sweeteners, flavors, or colors. This includes: meats raised without antibiotics or added hormones. Pasture-raised dairy. Local produce when seasonally available. Only non-GMO ingredients’’ (Tan). This advertisem*nt gives a positive perception of the food being served at Chipotle. “In fact, Chipotle is the first American fast-food chain to eliminate GMO from its ingredients’’ (Tan). Chipotle getting rid of GMO is a huge deal because GMOs are genetically modified organisms that can alter the way natural food would normally occur (Food, genetically modified). If you are wondering why your Chipotle bowl costs more than anticipated you can thank taking away GMO’s. When GMO’s are added into foods it makes it less expensive to sell because it becomes easier for farmers to grow them. GMOs have allergens in them that can be detrimental to some customers. Chipotle removing GMOs lowers the health risk for customers but heightens the cost of the product.

Although Chipotle no longer has GMOs in their food you have to read between the lines in the advertisem*nt. When you look a little deeper into the words being said, it raises some questions. Using local fruits and vegetables is ideal when consuming produce, but when it is the off season for some fruits and vegetables, where are they getting the produce when it is not in season? “At least 90% of Chipotle’s produce comes from larger scale suppliers, even more so when that product is not in season” (Carr). Most larger scale supplies are international, so with Chipotle getting their products internationally, the brand contradicts itself because their produce is not as fresh as they intended you to think through their advertisem*nts. Do you really know what you are consuming? “Sodium is likely the biggest threat to healthy eating at Chipotle. A flour tortilla itself has about 600 milligrams of sodium, and Chipotle’s meat options range from 310–560 milligrams’’ (Mulroy). While these numbers are shocking, it is not unexpected coming from a fast food restaurant because of how they must keep up the speed and convenience. People should consume around 2,3000 milligrams of sodium a day (Mayo Clinic Staff). You can find ways to substitute the tortilla or look into your meat options in more detail. Chipotle can be healthy when you decide what ingredients to put into your body, and knowing what the different ingredients have on your body. As a fast food restaurant, it is considered one of the most healthy options for convenience and health. Confirming that Chipotle can be healthy for you helps explain why Chipotle is on the rise in popularity.

Chipotle’s reputation was not all sunshine and rainbows. Back in October of 2015 Chipotle had an outbreak of E Coli that spread from foodborne illness. There were 55 reported illnesses with the majority of people attaining the illness from Oregon and Washington. Chipotle had a small break until another E Coli outbreak spread happened on a smaller scale but just two months later in December of 2015 where 5 people were infected (“Escherichia Coli O26 Infections Linked to Chipotle Mexican Grill Restaurants” (Final Update)). Many speculations of why E Coli was spreading was because of the packaged meat that Chipotle imports internationally, just like with their produce from the off seasons. With the spread around the news of Chipotle’s E coli outbreak Chipotle had to act fast on how to save their reputation. Chipotle had to put a new program in place. “Chipotle launched an enhanced food safety program, which included DNA-testing ingredients before they’re shipped to restaurants, changes to food prep handling practices, and offering paid sick leave to disincentivize sick employees from working” (Cooper). With this new plan in place the E Coli incident has been swept under the rug even with the media attention that was caused by the outbreak. Chipotle regained their customers’ trust and regained their reputation after around 5 years after the outbreak.

How is Chipotle related to gym culture? In recent media Chipotle and gym culture have gone hand in hand. As going to the gym has become a trend, so has the lifestyle that comes with going to the gym. TikTok has shined a light on being healthy and sustainable. As interests have been piqued many people will post about what they eat and how they workout. Many gym influencers or average people use Chipotle to fuel themselves after a workout. Some different gym influencers like Scotty Moore Fitness, Al, Calvin Chumley, Rylan Clark and more all have videos on their TikTok promoting what they eat as a person who posts about their gym experiences and diets. They use Chipotle because you can do a variety of different things to your order. For example, you can do high carb/high protein/low fat, or low carb/high protein/high fat, or moderate carb/high protein/moderate fat depending on your different body type or what your body needs (Fitman). Having this much variation and customization with the food can make it so that many different body types and fitness routines can have their own custom diet at the same establishment. With this information gym influencers make Chipotle part of their post workout routine, and they then post it on social media for many followers to see. With the unpaid promotion of gym TikTok Chipotle does get recognition from these viral videos which in turn causes more customers to buy their food based off of the current trends. With the many TikTokers posting daily gym videos and diet ideas, gym culture has embraced Chipotle keeping the brand on a steady rise.

Chipotle’s marketing strategies make sure Chipotle is seen by the world. I have seen countless Chipotle advertisem*nts while scrolling through Tiktok, Snapchat stories and Instagram stories. Every time that I see one of those advertisem*nts pop up I think wow I could really go for some Chipotle right now. Chipotle uses relatively simplistic marketing techniques that are clear and to the point. Every marketing campaign that they launch goes back to the core of the brand which is “Food with Integrity.” Many of their advertisem*nts show the process of how their food gets made and obviously why you specifically should be eating at this restaurant. Chipotle uses child friendly advertisem*nts to make sure that their message applies to anyone in the world. Chipotle also hooks their customers by interacting with them on social media. I know this from personal experience because after an Oregon State University football game my roommate and I went to Chipotle. We then posted about our burritos, and then the official Chipotle Instagram account commented saying “post win burrito 👌.” Because my roommate and I are avid Chipotle fans we thought this was one of the coolest experiences that could happen to us at the moment. Chipotle is also active on other social media platforms such as Twitter, Snapchat, Tiktok and even FaceBook. Chipotle tweets out to their fans quite frequently to promote engagement with their customers. Chipotle relies on humor to push the brand further. Chipotle tweeted out “Good morning to everyone, except people who take out Tabasco bottles.” or “It’s getting hot out there, so don’t forget to stay hydrated. That’s what our “water” cup’s for. Water” (Twitter). By using humor to interact with fans Chipotle gains more recognition and customers because they want to have a relationship with their customers. Interaction is key to keeping loyal customers, and rising success.

I remember when Chipotle was giving a year of free Chipotle cards to YouTubers and other celebrities like David Dobrik. When having a platform like David Dobrik who is one of the most successful YouTubers of the past few years it would be smart to promote your brand through an influencer with as much power as David has. Receiving one of these cards was a huge deal around 2019–2022 because you were considered Chipotle royalty. I used to watch David a lot around the time of him receiving one of those cards. I remember feeling happy for him and wanting one of those cards. I thought that it was so cool that Chipotle would do that for celebrities because no other fast food chain was giving out free cards and the title of ‘Chipotle Celebrity.’ Chipotle does promotions like this that will stick in your brain because it is linked to one of your favorite celebrities. Because of the many different ways Chipotle is promoted, Chipotle’s marketing always keeps you engaged.

Why is Chipotle on the rise? They seemed to have cracked the code with all of the pillars they needed to be successful. They claim to have fresh ingredients made everyday that are healthy for you. Chipotle lives up to this claim showing examples of how they prepare their food. They also state that they removed harmful GMOs in their foods, which in turn brings up customer trust. They appeal to the Gen Z audience by having many TikTok influencers promote the brand whether it is paid or unpaid promotion. Having these influencers create content around Chipotle gives them more notice to the brand in a positive way. The way they market the brand by having interactions with their everyday customers keeps customer loyalty rates up. Even when they had a few bumps in the road with the E Coli outbreak, Chipotle found a way to rewrite their wrongs to save the brand’s reputation. I think Chipotle has found a safe zone where they know how to be successful and keep climbing the success. If they continue what they are doing I can see the brand keeping a steady success rate. I will be curious to see if their rise continues or if the media and general public loses interest in the brand because with trends on TikTok most of them are only popular for certain periods of time.

Works Cited

Carr, Austin. “A Tale of the Two Most Local Chipotles in America .” Fast Company , 16 Oct. 2016, www.fastcompany.com/3064274/a-tale-of-the-two-most-local-chipotles-in-america.

Cooper, Kindra. “How Chipotle Regained Customer Trust after the E. Coli Outbreak in 2015.” CCW Digital, 29 Aug. 2023, www.customercontactweekdigital.com/performance-metrics/articles/chipotle-behind-the-foil#:~:text=Chipotle%20launched%20an%20enhanced%20food,disincentivize%20sick%20employees%20from%20working.

Fitman. “3 Healthy Chipotle Orders That Won’t Wreck Your Waistline.” Muscle & Strength, Muscle & Strength, 13 June 2020, www.muscleandstrength.com/articles/3-healthy-chipotle-orders#:~:text=Healthy%20Chipotle%20Order%201%3A%20High%20Carb%2FHigh%20Protein%2FLow%20Fat&text=My%20super%20metabolism%20can%20handle,for%20pre%20and%20post%2Dworkout.

“Food, Genetically Modified.” World Health Organization, World Health Organization, 1 May 2014, www.who.int/news-room/questions-and-answers/item/food-genetically-modified.

“Escherichia Coli O26 Infections Linked to Chipotle Mexican Grill Restaurants (Final Update).” Centers for Disease Control and Prevention, Centers for Disease Control and Prevention, 20 Nov. 2015, www.cdc.gov/ecoli/2015/o26-11-15/index.html.

Mulroy, Clare. “How Healthy Is Chipotle, Really? Customize Your Order to Meet Your Dietary Goals.” USA Today, Gannett Satellite Information Network, 7 Nov. 2023, www.usatoday.com/story/life/food-dining/2023/01/16/is-chipotle-healthy/10435662002/.

Staff , Mayo Clinic. “Sodium: How to Tame Your Salt Habit.” Mayo Clinic, Mayo Foundation for Medical Education and Research, 28 June 2023, www.mayoclinic.org/healthy-lifestyle/nutrition-and-healthy-eating/in-depth/sodium/art-20045479#:~:text=The%20daily%20limit%20set%20by,is%20hidden%20in%20prepared%20foods.

Tan, Jon. “9 Ways the Chipotle Marketing Strategy Kept It Real (and Won).” Boost Your Sales with ReferralCandy — #1 eCommece Referral Program Software, ReferralCandy, 17 Feb. 2022, www.referralcandy.com/blog/chipotle-marketing-strategy.

Twitter, Twitter, twitter.com/ChipotleTweets?ref_src=twsrc%5Egoogle%7Ctwcamp%5Eserp%7Ctwgr%5Eauthor. Accessed 23 Nov. 2023.

Why is Chipotle on the Rise? (2024)

FAQs

Why is Chipotle doing well? ›

Chipotle does it by improving throughput — how many people that they can serve, say, every 15 minutes,” he said. “It just keeps getting better and better and that's got nothing to do with GDP or inflation woes.” The fast-casual chain reported quarterly earnings Wednesday and greatly exceeded Wall Street's expectations.

Why did the price of Chipotle go up? ›

Chipotle has raised menu prices 6% to 7% in California restaurants to cope with the state's new Fast Food Wage of $20 per hour, which went into effect April 1. The move will cover the cost of the state-mandated wage increase in dollar terms, which for Chipotle will increase wages in the state about 20%.

Why did Chipotle become so popular? ›

“Food with Integrity”

Ells became committed to serving food that was ethically and naturally produced, which Chipotle claims results in meat that is tastier than what other restaurants serve. In 2013, Chipotle instituted a no-GMO policy for its ingredients. Consumers agreed.

Why is Chipotle so hyped? ›

Part of what makes Chipotle so popular among such a broad range of people is its versatility and ease of customization. Every customer has their own order or preference of what they want in their order. For anyone who wants a relatively healthy meal that will fill you up, with no doubt, Chipotle is the way to go.

What challenges is Chipotle facing? ›

Chipotle is also contending with inflation across several ingredient costs, particularly beef, produce, and avocados. Although the previous year's menu price increase provided some relief, the company still faces a protein mix headwind from the successful Beef Barbacoa marketing initiative.

What is Chipotle's competitive advantage? ›

“Food with Integrity” is Chipotle's focus. And cultivating quality restaurateurs who deliver premium food ingredients at affordable prices is their sustainable competitive advantage (Kretzman, 2014).

How much is a bowl at Chipotle 2024? ›

Bowl: Similar to burritos, a basic bowl costs around $8.85 to $10. Salad: Salads with chicken or other standard fillings is typically around $9. Quesadilla: Cheese quesadilla from the kids' menu is $4.50.

Why did McDonald's stop investing in Chipotle? ›

"At the time Chipotle and other concepts, such as Boston Market, had taken attention away from the core brand," Entrepreneur's Kate Taylor writes, paraphrasing Easterbrook's response. "Company executives wanted everyone to put 100 percent of their efforts into the McDonald's brand, so they sold the company's shares."

How much did McDonald's pay for Chipotle? ›

This was part of a larger initiative for McDonald's to divest all of its non-core business restaurants — Chipotle, Donatos Pizza, and Boston Market — so that it could focus on the main McDonald's chain. McDonald's had invested approximately $360 million into Chipotle, and took out $1.5 billion.

What's so special about Chipotle? ›

We're known for our blend of bold flavors with reliably real ingredients and we are committed to making every bite worthwhile. We value employees that understand and believe in our mission. If you get our food, our business, and our people, you're in the right place.

How did Chipotle make a comeback? ›

Now after hiring a new chief executive – the former head of Taco Bell – Chipotle is rebounding, helped by better quality control, new menu items, and expanded delivery and pickup options. Chipotle has surged 66% so far in 2019, making it the second-best performing stock in the S&P 500 through Friday.

Why do Millennials love Chipotle? ›

Chipotle's popularity among young consumers is a testament to its omnichannel marketing strategy, which often highlights the quality of its ingredients. It's also a testament to the power of social media marketing, especially among younger consumers.

Who is Chipotle's biggest competition? ›

They include Qdoba Mexican Eats, Moe's Southwest Grill, Baja Fresh Mexican Grill, and Rubio's Coastal Grill. Chipotle also competes on a less head-to-head basis against Taco Bell, the market leader in the Mexican-style fast-food sector.

Is Chipotle still successful? ›

To begin with, Chipotle has remarkable store economics. Its average restaurant sales rose 7% year-over-year (y-o-y) to $3.1 million in Q1, despite adding 47 new restaurants over the same period - illustrating that the additions are not cannibalizing existing locations.

Who owns Chipotle? ›

Chipotle Mexican Grill is a publicly traded company, meaning its shareholders own it. The largest shareholders of Chipotle are investment companies, including The Vanguard Group, BlackRock, and State Street Corporation.

How is Chipotle doing financially? ›

Total revenue in the first quarter was $2.7 billion, an increase of 14.1% compared to the first quarter of 2023. The increase in total revenue was driven by new restaurant openings and a 7.0% increase in comparable restaurant sales due to higher transactions of 5.4% and a 1.6% increase in average check.

Why is Chipotle successful on TikTok? ›

Key Takeaways. TikTok Tactic — Timely & Relevant Content: TikTok trends live and die overnight, what is popular today may be entirely different tomorrow. Chipotle has mastered the art of creating timely and relevant content by keeping their finger on the pulse and jumping on trends within hours of them becoming popular ...

Is Chipotle a good stock to buy right now? ›

Our proprietary system currently recommends Chipotle Mexican Grill (CMG) as one such stock. This company not only has a favorable Growth Score, but also carries a top Zacks Rank.

Why is Chipotle's PE ratio so high? ›

Thanks to Chipotle's monster performance over the past several years, the stock is ridiculously expensive right now. It trades at a price-to-earnings (P/E) ratio of about 62. That's a premium price tag that makes Chipotle's current valuation more expensive than both the S&P 500 and the Nasdaq-100 Index.

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