It’s a safe bet that if you don’t have an obsessive love for Chipotle, then you know someone who does. Founded in 1993 by Steve Ells and headquartered in Denver, Colorado, Chipotle Mexican Grill, Inc. is a chain of restaurants spread throughout North America, the United Kingdom, Germany, and France that specializes in burritos, tacos, and other Mexican-style cuisine. One of the world’s first fast casual dining establishments, Chipotle has since grown to more than 1,600 worldwide locations and a staff of more than 45,000 employees with a market cap of $20.45 billion. Quickly becoming one of the most popular restaurants in the world, here are five reasons why Chipotle will be bigger than its former fast food investor, McDonald’s.
5. Rival Sales and Growth
Chipotle has been on a steady rise over the last few years, reporting a revenue of $3.21 billion last year. Each of McDonald’s restaurants averages sales of about $2.5 million, while Chipotle is not far behind with each of its locations averaging $2.2 million. As Chipotle continues to expand and open more worldwide locations, its comparable figures are projected to continue growing, while its 28.6 percent revenue growth is a growth that hasn’t been seen since the early days of McDonald’s.
4. Fast Casual Dining
Co-CEO Montgomery Morgan recently stated that he believes fast-food is “going away” because Chipotle “and others like us” are remaking the chain-restaurant industry, transforming it from a fast-food get in get out mentality to a friendlier and more welcoming fast casual approach. According to Morgan, Chipotle’s mission is “to change how people eat fast food.” With Chipotle leading the charge, fast casual dining will most certainly grow in popularity–leading to an imminent increase in revenue.
3. Millennials
It’s an obvious fact that Millennials are defecting to other restaurant chains, straying from the fast food-centric big name corporations like McDonald’s and Burger King in favor of fresher, healthier, more attractive alternatives such as Chipotle. Although Chipotle’s prices may be higher, Millennials know now more than ever that you get what you pay for. Customizable menu options, cool industrial aesthetics, simple and unique food options, and clever marketing is leading the youth to Chipotle.
2. Chipotle’s Cult Following
When Millennials love something, that something is bound to go viral. There’s no other chain restaurant in the world that has the cult following Chipotle has. From the occasional social media burrito posts from college friends to seeing President Obama ordering a burrito bowl, Chipotle-mania is spreading across the nation and shows no signs of slowing down. Chipotle extremists have gotten engaged at the restaurant, gone there on their wedding day, gotten burrito tattoos, and even ate it while skydiving.
1. Chipotle is Better
In the eyes of many, Chipotle Mexican Grill is just plain better than its giant fast food competitor McDonald’s. Chipotle has the pricing power, the consumer appeal, and a slew of simple and popular marketing tools on its side. The fast casual establishment is known worldwide for its “Scarecrow” ad and its “Food with Integrity” mission, which is Chipotle’s “commitment to finding the very best ingredients raised with respect for the animals, the environment, and the farmers.” Chipotle is centered around what the fast food industry lacks: quality over quantity.
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