Quality Product and Customer Service: How Chipotle Conquered a Crowded Market
A recent Knowledge@Wharton article, "Full of Beans: How a Classically Trained Chef Reinvented Fast Food" provides an entertaining look at the beginning and subsequent rise of the Chipotle Mexican Grill chain of fast food restaurants.
Chipotle's founder, Steve Ells, spoke last November at a Wharton Leadership lecture and shared with students his success story. Reading the article, it became clear that Ells' story transcended fast food and touched on many keys of success applicable to any industry.
A few of the principles behind Ells' rise:
- Find an untapped market, even if you have to move: Though Ells studied at the Culinary Institute of America and dreamed of starting his own California haute-cuisine restaurant, he instead moved back to his hometown of Denver and opened his version of a California taqueria. While San Francisco didn't need another white tablecloth dining option, Denver -- and eventually the rest of the country -- needed Chipotle.
- Differentiate your product: Chipotle has set itself a step ahead of the competition by catering to customers concerned about sustainability. According to Ells, Chipotle buys more antibiotic-free and vegetarian-fed meat than any other restaurant in the world. As a result, Ells says Chipotle's meat tastes better. Which brings us to the next point.
- Give people quality, even if they don't expect it: Ells clearly has a more nuanced approach to making fast food than do his competitors. He told the Wharton audience, "Every single customer who came through that door was precious. I had to give them a very special experience. I had a small crew. I taught them how to cook. ... I was applying the classical French chef mentality that I had learned in cooking school."
- Remember that your business is only as strong as its staff: Chipotle offers better-than-average pay for the fast food industry and offers managers lucrative financial incentives for hiring quality people - and firing those who aren't up to snuff. As a result, Chipotle has a reputation for good service that far exceeds its competitors.
Image courtesy of Flickr user paulswansen, CC 2.0.