Chipotle Franchise

Chipotle Franchise is a Mexican restaurant chain with its stores scattered all across all over the United States as well as in Canada, Germany, United Kingdom, and France. It’s considered to be healthy fast food by a lot of people due to the high proportion of grains and vegetables. Chipotle offers food free of artificial colors, flavors, and preservatives. Chipotle adheres to its motto that is “food with integrity” and believes in fresh, natural ingredients.

What will it cost to start the first Chipotle Franchise? There was a time when Chipotle allowed franchising of its restaurant, but it was shut down in 2006. At the present, Chipotle does not allow anyone to franchise their restaurants because they don’t want the idea of “compromising the experience” regarding how their operations are run. When you work with franchisees, you surrender a bit of control.

In this report on the industry, I review Chipotle’s profits, sales, and other important business information. If Chipotle decides to expand franchise opportunities in the future then you’ll be prepared to move forward. Let’s explore the business that is expanding the Mexican idea.

Chipotle Franchise Cost

Chipotle does not offer an opportunity to the franchise and there aren’t any charges. However below are the prices similar concepts cost by comparing similar concepts such as Qdoba as well as Moe’s Southwest Grill.

Franchise Fee

Fees/ExpensesFinancial Amount
Total Investment$800,000 – $1,000,000
Franchise Fee$20,000 to $75,000

Average Sales / Revenue per Year

Chipotle’s average sales per location exceeded $2.2 million. In 2019, the average sales per store were to this figure. The company’s worldwide sales, however, are close to $6 billion, which is Chipotle’s record for highest sales ever. The company’s sales grew by 7.13%. 7.13 percent.

To put this figure into perspective, this is an incredible overall store efficiency. Consider the example of Steak ‘n Shake, which grosses around 1 million dollars in revenue for each store per year. There are many franchise opportunities available that would be delighted to cross the $1 million mark of revenue per year.

Chipotle Franchise Facts

Total Units2,819
Incorporated NameChipotle Mexican Grill Inc.
Franchising SinceDoes Not Allow Franchising
IndustryRestaurant
SubsectorQuick Service

Chipotle began around 1993, it was founded in 1993 in Denver, Colorado. Chipotle was founded in 1993 by Steve Ells who loaned $85,000 from his father to begin the company after he quit his position as an assistant cook at San Francisco. To be able for the company to succeed, Ells and his father estimated that they would need 107 burritos to be sold every day. After one year, Chipotle began selling over 1,000 burritos per day.

McDonald’s bought Chipotle back in the year 1998. Their investment was instrumental in paving the way for Chipotle’s expansion from just 16 outlets to 500 by 2005. It was in the year 2006 that McDonald’s quit Chipotle. The company later bought franchises back and became a wholly-owned subsidiary.

Chipotle is proud to use only 53 ingredients “you can pronounce.” The store does not have fridges nor can openers. In other words, this practice ensures that consumers get the best ingredients made fresh every day.

Chipotle is number 4 on Fortune’s list of the World’s Most Admired Companies of 2020. California is home to the largest number of Chipotle with 412 branches. In March 2018 the former Taco Bell CEO Brian Niccol became the CEO of the company.

How Much Does Chipotle Make in Profit?

In the year 2020, Chipotle generated $6 billion in revenues. In June 2021 Chipotle was operating at an operating profit of 9.93 percent. Chipotle has consistently surpassed earnings figures with every quarterly report in the last couple of years.

Based on the results of the company in 2018 the company may earn greater than 595 million dollars in profits towards the end of the calendar year. That’s a lot of burritos!

Even during the pandemic, even though there was a negative impact on sales at Chipotle due to lock-downs, the company was able to emerge from the situation stronger than ever. Before the onset of the pandemic, Chipotle reported a growth of 24.8 percent from 2017 to the year 2019. This is an unheard-of performance for Chipotle, a Mexican food chain.

Advantages of a Chipotle Franchise

We’re sure you’re not able to run in a Chipotle. If you’ve ever had the opportunity there are some advantages that you can take advantage of.

Healthy Version of Fast Food

We’ll admit that Chipotle has been deemed to be fast food. However, it’s healthier than many restaurants because the food is less oily and prepared in front of the customers to ensure that they are aware of what the service staff will do with their food. Food is served quickly and is healthier than what you would get at a restaurant.

Chipotle is a restaurant that makes use of only the freshest ingredients and provides many vegetarian options. Chipotle has no freezer, so the ingredients that are laid out for customers are being delivered lately.

If you’re able to operate the Chipotle or another restaurant, you’ll be able to bring in a healthy-conscious customer base that is quite a bit as this trend will continue to grow.

Popularity

Chipotle is so well-known that it doesn’t need much advertising to attract customers. Chipotle is well-known worldwide with Chipotle stores being found located Chipotle in the United Kingdom, Canada, France, and Germany. It could one day become in the same way as fast-food chains that you could think of.

Simple Menu

Despite the variety of toppings, you can pick from at Chipotle their menu is quite easy to follow. Customers pick whether they want burritos, burrito bowls, tacos, salad, or taco before proceeding to pick their favorite grains, beans, and toppings. They also offer an option for children’s meals should customers bring their children for a meal using the same menu of ingredients.

Digital Ordering

Like other category leaders such as Starbucks, Chipotle has been able to make use of online ordering. In the year 2020, Chipotle saw a 177.2 percent increase in online sales which led to $781.4 on sales. A growing number of customers are starting to recognize the benefits of placing orders ahead using an app. Apart from increasing sales, the business can drive greater long-term sales through an online loyalty system too. From a digital marketing point of view, Chipotle is positioned well ahead of its competitors.

Challenges of a Chipotle Franchise

Being in charge of a business or even one that is franchised, does not guarantee the smoothest operation. There will be challenges, and it’s best to understand the specifics of them before tackling one. For Chipotle Here are a few of the things I consider as a challenge to the company.

Keeping Things Fresh

As we mentioned earlier, Chipotle is known for making use of fresh ingredients each day. The challenge here is to make the most amount you can throughout the day so that you don’t end up with leftovers. An ex-employee of Chipotle has stated that the rest of the meat is put away at the end of the day. It’s not a good idea to be dumping a lot of food waste at your location. If the number of customers was to decrease to accommodate this idea food waste and costs could rise dramatically.

Past Outbreaks

Unfortunately, Chipotle has gotten several negative presses for E-Coli-related outbreaks throughout the decades. This has damaged Chipotle’s reputation and affected the company’s sales. While they’ve been able to get back on their feet and even some of the time, the history isn’t forgotten for some.

Competition

The concept behind Chipotle is that it should not be too difficult to duplicate. Anyone living throughout Southern California understands there are numerous ma-and-pa-taco shops in the market that are excellent. At the end of the day, they’re a business that serves Mexican food.

In reality, concepts such as QDOBA are still not able to achieve more than $1billion in revenue per annum. Although Chipotle is a simple concept to replicate in principle, Chipotle has proved repeatedly that they can do it better than any other company in the market.

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Is the Chipotle Franchise Right For You?

If Chipotle allows franchisees to become involved again in the business, it could be a lucrative possibility. It appears to be a lucrative company if you are permitted to franchise one. It’s also gaining strength over the years and remains solid despite the constant battle against epidemics and even this pandemic. It’s an investment worth making if you’ve got the money to spare and a love for serving fresh Mexican food.

What’s the alternative to a Chipotle franchise?

If you’re not waiting for Chipotle’s acceptance of franchising once more, take a look at Moe’s Southwest Grill or QDOBA Mexican Eats. Both restaurants offer the same menu items that are served at Chipotle. Moe’s franchise fees are $30,500 and QDOBA’s franchise cost is $30,000.

I’ll conduct an assessment on both companies shortly. This guide will certainly be ready for the possibility of a Chipotle franchise if it is an option.