Chipotle
The burrito chain that made fast casual a category, one of America’s most valuable restaurant companies, with no franchisees at home.
11 figures on Chipotle, drawn from 8 Modern MBA case studies.
The figures
US dollars1
| Against its own chart | |||
|---|---|---|---|
| Average order size by chain and concept | $17 | 6th of 9 · top $30 | Why fast food can't make a good burger |
Percentages7
| Against its own chart | |||
|---|---|---|---|
| Food and labor as a share of sales · Food costs | 30% | 2nd of 6 · top 35% | Why diners never go out of business |
| Annual restaurant-level operating margin | 27% | 2nd of 9 · top 30% | How much a Texas BBQ joint actually makes |
| Restaurant-level operating margins across the industry in 2010 | 26.6% | 1st of 8 · top 26.6% | Why Chipotle got so much worse |
| Food and labor as a share of sales · Labor costs | 26% | 6th of 6 · top 39% | Why diners never go out of business |
| Store-level operating margin by restaurant chain in 2022 | 24% | 1st of 13 · top 24% | Why Taco Bell got so expensive |
| Annual operating margins | 24% | 3rd of 8 · top 40% | Why donut shops out-earn Krispy Kreme |
| Operating margin in 2022 as reported, and at the union's $20 an hour | 13% | 2nd of 5 · top 14% | Why Starbucks is fighting its own baristas |
Durations1
| Against its own chart | |||
|---|---|---|---|
| Duration of chief executive searches at large companies, in months | 2.5 mo | 8th of 9 · top 13.5 mo | Why Chipotle got so much worse |
Measures2
| Against its own chart | |||
|---|---|---|---|
| Average location size in square feet, 2022 | 2,580 sq ft | 8th of 8 · top 8,750 sq ft | Why diners never go out of business |
| Average size of a domestic store, in square feet | 2,500 | 3rd of 7 · top 4,000 | How Papa John’s buried Papa John |
Case studies covering Chipotle
Case study — Food & beverageHow Papa John’s buried Papa JohnSix regimes in thirty years, four of them engineered by the founder. The filings contradict his version.13 min read
Case study — Food & beverageWhy Chipotle got so much worseA weekly staple became a byword for small portions and high prices in under ten years. Here is what broke.10 min read
Case study — Food & beverageWhy Starbucks is fighting its own baristasIt can afford the raise. What it cannot afford is an operating margin that looks like a restaurant's.12 min read
Case study — Food & beverageWhy fast food can't make a good burgerMcDonald's makes more from rent than from food. That is why it can't fix the burger — and why four LA independents can.13 min read
Case study — Food & beverageHow much a Texas BBQ joint actually makesOne in three fail, brisket yields 40%, and the biggest variable in whether you survive is one magazine editor's palate.16 min read
Case study — Food & beverageWhy Taco Bell got so expensiveThe most profitable chain in fast food is being squeezed hardest, and the reason is KFC and Pizza Hut.11 min read
Case study — Food & beverageWhy donut shops out-earn Krispy KremeThe average Krispy Kreme grosses $119K a year. A 650 sq ft Portland shop grosses $600K at a 40% margin.12 min read
Case study — Food & beverageWhy diners never go out of businessThree chains, three opposite strategies, and identical 13% store margins. Diners survive everything and grow at nothing.14 min read