Did you watch the Chipotle commercial below? The animated film features a cover of Coldplay's "The Scientist" by farmer/singer/songwriter Willie Nelson and shows the transformation of a farmer caught up in industrial practices -- and ends with a pigs frolicking. Oh, and there are rainbows and people holding hands. No tacos, though.
I guess it is the Whole Foods of Tacos.
Organic = higher profit margins. Though I wonder if they ever actually audit the Organicness of the ingredients.
Re: It's not about the food
driven
4/4/2012 11:37:48 AM
Chipotle has to hold on to its image to maintain its growth. Otherwise it just becomes Taco Bell with $8 burritos.
Good question @Drivewaygirl. It's trying to strike a balance between sustainability and profit. For instance, last week it announced it would give free food to customers who buy a recycled lunch bag from its online store before April 14, in advance of Earth Day on April 22. A percentage of proceeds going to the Chipotle Cultivate Foundation, a non-profit that promote sustainable agriculture.
But it admits it's taking longer to find and secure relationships with suppliers meeting its sustainable criteria, and notes there are "higher costs and other risks associated with purchasing naturally raised or sustainably grown ingredients," in its 2010 annual report, citing increased growing time and losses associated with drug-free animals and produce.
Re: It's not about the food
Drivewaygirl
4/4/2012 11:09:22 AM
How much does Chipolte put its money where its (sustainable) mouth is?
Chipotle is tapping the whole sustainability, eco-friendly thing. It's not really about the food.
It's success with hormone-free dairy products, naturally raised meat and local produce has the restaurant chain taking its message to a broader audience. The Mexican-inspired fast-casual chain released an animated video to movie theaters last fall and hosted the first of many food-and-music festivals.
Re: Chipolte Shop House
Value Hiker
4/3/2012 10:47:24 PM
Scott, you are right. At the darkest hour of 2009, you can scoop CMG at a reasonable price. At that time, almost every stocks were on sale, including AAPL. My cash reserve was quickly drained with all these limited orders I set early on. Instead of feeling like a oversexy guy in a harem, I felt like a cripple on a dancing floor.
@valuehiker,
Absolutely but at some point I'm sure you could have gotten it at a PEG <1
I know this is totally simplistic, but I would favor Chipotle over Apple because it's the more customer-oriented of the two.
Apple products just don't impress me on a "gut" level--and never have. So however well the stock might be doing, I think Apple has shown time and again that it cares very little about customer service and product quality beyond superficial looks. Now, too, their factories are coming under scrutiny and I think they'll be shown not to care much about human rights either.
A successful restaurant (or now, possibly two with ShopHouse) on the other hand, lives and dies by consumer opinion. They can never lose touch for even a second, and I'd place my bets on that.
I do think ShopHouse needs a better name, though. Am I missing a pun or something?
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