Latest news with #ScottBoatwright
Yahoo
3 days ago
- Business
- Yahoo
Chipotle's new CEO is bringing back a missing ingredient to hit the chain's next goal—raising annual sales per store to $4 million
When Scott Boatwright joined Chipotle Mexican Grill as chief operating officer eight years ago, he worked closely with the burrito chain's founder, Steve Ells. Chipotle was laser-focused on operations at the time, as it looked to rebuild sales after a safety crisis a couple of years earlier. But Boatwright felt that there was one ingredient missing: an extra touch of hospitality. As Boatwright, CEO since last November, recalls it, Ells told him that Chipotle didn't need to be friendly, it just needed to be fast. That's changing now that Boatwright is in charge. And friendlier service is a key prong in his plan to leave his mark on a quick-service chain. 'Our team members got so focused on creating the experience efficiently that they can just forget to smile,' Boatwtright tells Fortune in a recent interview at Chipotle headquarters in Newport Beach, Calif. That doesn't mean an in-depth exchange about how your kids are doing in school, he hastens to add. But it does mean basic greetings and questions like 'What can I make fresh for you today?' or phrases like 'Thank you for spending your hard-earned money at Chipotle,' which Boatwright says do not slow employees down, but rather add a more welcoming vibe to what is after all a hospitality business. (His predecessor and former boss Brian Niccol, who decamped for Starbucks last year after a highly successful six-year stint at Chipotle, is doing something similar at the coffee-shop chain, instructing baristas to leave short personal notes on cups. But the trick, Boatwright cautions, for such touches to work is for them not to feel 'forced.') 'We're all fighting for market share, we're all fighting for dollars,' he says. And that means the right-brain skills of making customers feel welcome have to be deployed along with the left-brain skills needed for best-in-class operations. That's all the more important given that Chipotle's plan to grow includes more international expansion, notably its bold bet on Mexico, going deeper into smaller U.S. cities and trying to get more business from each of its 3,500 existing restaurants. In the 10 months since he took the reins, initially on an interim basis, Chipotle shares have barely budged, reflecint a 'wait-and-see' attitude on Wall Street. On the same day Boatwright told Wall Street investors about the smile-more campaign, Chipotle announced its plan to work with a partner to open restaurants in Mexico, the spiritual home of the burritos and quesadillas it sells. The news raised eyebrows, given that Taco Bell's attempts to conquer Mexico a few years ago flopped. Analyst Antonio Hernandez at Actinver Research wrote in a research note that 'familiarity with its ingredients does not necessarily predict success,' according to Reuters. But Chipotle's top executives insist there is place in the market for its Americanized Mexican food given its focus on freshness and high standards. 'We're not just another American fast-food place that's coming,' says chief brand and marketing officer Chris Brandt, using a term many in the industry find derogatory, preferring 'quick-service restaurant.' 'It seems a bit like a selling-ice-to-Eskimos type of thing,' he jokes. But, he says, the white space in the market for Chipotle is Mexican-esque food of a certain quality, and freshness of ingredients in a faster environment. What's more, the Mexican experiment, done in partnership with a restaurant operator, Alsea, that has extensive experience there, will tell Chipotle if and how fast it can go further afield in Latin America. Brandt and Boatwright both say they are not worried about any anti-American sentiment abroad that would affect Chipotle expansion, in light of the sparring between the U.S.'s and Mexico's governments in recent months. 'I don't know if that trickles down to brands,' says Boatwright. In addition, Chipotle plans to grow by generating more business at restaurants it already has and expanding to new markets Stateside. Last year, the average Chipotle had annual sales of $3.2 million, but chief financial officer Adam Rymer says that figure can hit $4 million in the not too distant future. (Rymer also sees the potential for Chipotle to hit 7,000 stores by expanding not only abroad but also domestically into smaller markets of say 30,000 people where restaurants like a Chili's or an Olive Garden might not go but where people might want more options than McDonald's or KFC.) As his colleague, brand chief Brandt, puts it: 'We are a real restaurant, and most places in our space are not.' This is where operations, Boatwright's area of expertise for years, comes in. Chipotle uses 53 ingredients to prepare its food and is working hard on equipment innovation to make cooking easier without affecting the final product. A produce slicer and a device to help workers cut onions quickly are just two of the changes being made to speed up production without, the executives insist, affecting quality. Boatwright would also like to see quicker food innovation and go from two limited-time-offer (LTOs in industry jargon) items a year, or a temporary additional menu item meant to stoke interest, to perhaps three. Data analytics more sophisticated than the ones it used just a few years ago have allowed Chipotle to avoid misfires with its LTOs, like the Garlic Guajillo Steak disappointment in 2022, giving Boatwright and his team more confidence to innovate. Currently, Chipotle has a hit on its hands with honey chicken bowls and burritos, a product inspired by a Nashville food trend. 'We're not adventurous at all,' says the CEO. 'We follow a very strict stage-gating process. We'll know long before its hits the market whether it's going to be successful or not.' But one thing no one should expect: lower priced items gumming up the menu. Chipotle tried that during the financial crash of 2008–2009, only to find customers yawning. 'We've seen in the past is that it really didn't lead to more visits,' says CFO Clymer. 'The market testing we've done found that people are really stuck on what it is they go to Chipotle for.' (The company was able to pass on much of the inflation in recent years to customers with little pushback, though executives say they are being careful regarding the impact of tariffs on items like avocados and Australian beef.) And so as Chipotle looks to build on its 2024 sales of $11.3 billion, and quickly reverse a same-restaurant sales decline last quarter, it has a number of levers at its disposal. But execs say they are mindful of the changes that can add to sales initially but that ultimately would damage a brand anchored in what it calls food integrity. 'When brands start trying to be everything to everyone, they lose their identity,' says Boatwright. This story was originally featured on Sign in to access your portfolio
Yahoo
27-05-2025
- Business
- Yahoo
Chipotle and Chick-fil-A helped increase new restaurant locations among top brands in 2024
Chick-fil-A and Chipotle were the tip of the spear in augmenting new restaurant locations last year among top brands, per a new report from food service research firm Technomic. Chick-fil-a grew its footprint by 4.9% in 2024 to a total of 3,109 restaurants, while Chipotle Mexican Grill (CMG) expanded 8.1% in the same period to a total of 3,644 locations, according to the firm's 'Top 500 Chain Restaurant Report.' It was the fourth year in a row of U.S. restaurants expanding their number of overall locations. 'Location development buoyed Top 500 performance,' the company said. 'The Top 500 footprint expanded by 1.6% in 2024 to a total of over 236,000 restaurants, marking the fourth consecutive year of robust location development for chain restaurants.' Chipotle CEO Scott Boatwright said in a February earnings call that part of the company's success rested on 'tremendous progress' in expanding its footprint in Europe. The company, though, reported a 'slowdown' in consumer spending during the first quarter of 2025, citing customers foregoing restaurant visits to save money along with adverse weather. Meanwhile, Chick-fil-A had its sales slow in 2024, per Nation's Restaurant News. The fast-food chain is charting a $1 billion international expansion overseas starting with five new locations in the U.K. and one in Singapore this year. Chick-fil-A is also automating as part of a bigger strategy to reduce labor costs and improve company efficiency. It's tapping into other revenue streams as well, like selling lemon oil to the beauty and fragrance industries. The increased competition among chicken-based restaurants is prompting more jockeying to increase market share, especially as consumers get pickier about where and how they spend their cash. Raising Cane's was another chicken-based fast-food establishment that grew enormously last year. In 2024, it expanded by 13.9% and reached 828 destinations, according to the Technomic report. For the latest news, Facebook, Twitter and Instagram. Sign in to access your portfolio
Miami Herald
13-05-2025
- Business
- Miami Herald
Popular Mexican chain reveals surprising growth plans
Restaurants have faced a particular set of headwinds in the years since the pandemic. Covid brought widespread shutdowns, social distancing (remember that?) that forced them to operate at limited capacity, and a sharp drop in foot traffic. Plenty of independent restaurants didn't survive, and even large chains were hit hard when indoor dining disappeared. Don't miss the move: Subscribe to TheStreet's free daily newsletter Between higher prices for everything from labor to real estate to transportation and supply costs, it's hard to succeed in the restaurant business, even in the best of times. Brands that embraced technology like mobile ordering, including Panera and Chick-fil-A, have fared better than most over the last couple of years. Some chains managed to adapt and emerge even stronger, and few have done it better than Chipotle Mexican Grill (CMG) . Chipotle has carved out a unique place in the fast-casual space by offering high-quality ingredients - e.g., fresh avocado, tomatoes, lettuce, cauliflower rice, and house-made salsa - with seemingly endless customization options. You can even order keto, vegetarian, and gluten-free meals, with no fuss. It's not exactly typical fast-food fare. So why is Chipotle so popular? In the years since the pandemic, Chipotle has doubled down on its technology, including making investments in its digital ordering platform, its delivery partnerships, its loyalty program, and by adding "Chipotlanes" to more locations. Related: Trader Joe's has a delicious copycat of a Chipotle favorite Chipotlanes are the convenient drive-thru lanes for mobile orders; according to Restaurant Dive, restaurants with Chipotlanes have around 15% higher sales than those without them. Chipotle says 80% of the restaurants it will open in 2025 will feature Chipotlanes, according to USA Today. Just as they are in the U.S., customers around the world are in search of healthy, customizable fast-food options. The company revealed it will open between 315 and 345 restaurants in 2025, in Canada, the UK, and Europe. As many as 20 of the new restaurants will be in Canada. So far this year, Chipotle has opened in Arizona, California, Connecticut, Delaware, Florida, Georgia, Illinois, Indiana, Iowa, Louisiana, Maryland, New Jersey, New Hampshire, New York, North Carolina, Oklahoma, Pennsylvania, Rhode Island, South Carolina, Tennesssee, Texas, Utah, Virginia, Washington and West Virginia. Only Alaska and Hawaii are Chipot-less. In a bold move, Chipotle will also make its debut in Mexico early next year. More Fast Food & Restaurant News: Starbucks makes shocking pricing move customers will loveBankrupt restaurant chain offers new deal, stiff drinkNew Taco Bell menu items combines multiple classics At the company's most recent earnings call in February, Chipotle CEO Scott Boatwright said the company's 2024 total revenue was $11.3 billion, an increase of 14.6% from 2023. "I want to make sure that as we continue to scale Chipotle, everything we do is in service of our guests or those who serve our guests which will enable us to achieve our long-term ambitious goals of reaching 7,000 restaurants in North America, growing our AUVs beyond $4 million, expanding margins and making progress toward becoming a global iconic brand." Related: Veteran fund manager unveils eye-popping S&P 500 forecast The Arena Media Brands, LLC THESTREET is a registered trademark of TheStreet, Inc.
Yahoo
11-05-2025
- Business
- Yahoo
Chipotle aims to open over 300 locations in 2025: See list of where they've opened so far
Chipotle Mexican Grill is expecting to open more than 300 locations this year as the company seeks to expand its footprint both in the United States and abroad. Chipotle told USA TODAY that the company plans to open between 315 and 345 restaurants, with 80% including a drive-thru 'Chipotlane' for digital orders. Outside the U.S., Chipotle says 15 to 20 out of the more than 300 will be opening in Canada. Chipotle posted its fourth quarter and full year financial snapshot in February, revealing to investors in a Feb. 4 earnings call that the company's total revenue for 2024 was $11.3 billion, a 14.6% increase from 2023. "Chipotle had another outstanding year," Scott Boatwright, Chipotle CEO, said in a news release. "I want to make sure that as we continue to scale Chipotle, everything we do is in service of our guests or those who serve our guests." Chipotle says 57 company-owned restaurants have already opened during the first quarter of 2025. The map shows the new locations that have opened in states like: Texas, New York, Ohio, Florida, South Carolina, Connecticut, Virginia, Rhode Island, New Hampshire, North Carolina, Louisiana, California, Delaware, Indiana, Tennessee, Illinois, Georgia, Maryland, New Jersey, West Virginia, Iowa, Arizona, Oklahoma, Pennsylvania, Washington and Utah. Although not listed in the map below, locations have opened in Alberta and Ontario, Canada. Fernando Cervantes Jr. is a trending news reporter for USA TODAY. Reach him at and follow him on X @fern_cerv_. This article originally appeared on USA TODAY: Chipotle has opened 57 locations in 2025. Is your state on the list?
Yahoo
09-05-2025
- Business
- Yahoo
Chipotle aims to open over 300 locations in 2025: See list of where they've opened so far
Chipotle Mexican Grill is expecting to open more than 300 locations this year as the company seeks to expand its footprint both in the United States and abroad. Chipotle told USA TODAY that the company plans to open between 315 and 345 restaurants, with 80% including a drive-thru 'Chipotlane' for digital orders. Outside the U.S., Chipotle says 15 to 20 out of the more than 300 will be opening in Canada. Chipotle posted its fourth quarter and full year financial snapshot in February, revealing to investors in a Feb. 4 earnings call that the company's total revenue for 2024 was $11.3 billion, a 14.6% increase from 2023. "Chipotle had another outstanding year," Scott Boatwright, Chipotle CEO, said in a news release. "I want to make sure that as we continue to scale Chipotle, everything we do is in service of our guests or those who serve our guests." Chipotle says 57 company-owned restaurants have already opened during the first quarter of 2025. The map shows the new locations that have opened in states like: Texas, New York, Ohio, Florida, South Carolina, Connecticut, Virginia, Rhode Island, New Hampshire, North Carolina, Louisiana, California, Delaware, Indiana, Tennessee, Illinois, Georgia, Maryland, New Jersey, West Virginia, Iowa, Arizona, Oklahoma, Pennsylvania, Washington and Utah. Although not listed in the map below, locations have opened in Alberta and Ontario, Canada. Fernando Cervantes Jr. is a trending news reporter for USA TODAY. Reach him at and follow him on X @fern_cerv_. This article originally appeared on USA TODAY: Chipotle has opened 57 locations in 2025. Is your state on the list?
