Chipotle’s signature menu, the giant foil-wrapped burrito might not be that big but it surely is big enough to drive a massive success on its marketing campaigns and make the restaurant chain just about the most popular fast food franchises in the nation today, and probably for the next decade. The Chipotle franchise founder, Steve Ells, was a cooking school graduate who wanted opening his very own fine dining restaurant. When Ells discovered that he didn’t have enough funding for his goals, he established the Chipotle Mexican Grill in 1993, with high hopes that the money generated from this venture will help him open his ideal restaurant. The Chipotle holiday hours was in Denver. Shockingly, many customers liked its services and products, attracting the attention of aspiring entrepreneurs and investors. Years right after the establishment of Chipotle, Ells has still not yet opened his dream fine dining restaurant. Though it’s not a bad thing, considering that he currently sits at the top of a highly reputed and successful fast food service venture.
Chipotle Franchise Review
As of today, Chipotle avoids operating a normal franchise system. Because of this, there are presently no Chipotle franchises, no Chipotle franchises on the market, and no means for any interested entrepreneur to buy a Chipotle franchise – a minimum of for now. In 1998, the McDonald’s Corporation invested a large amount of funds in the company, claiming an ownership directly in Chipotle up until the latter experienced IPO (initial public offering) in 2006. Still, Chipotle is still a reputed fast food enterprise primarily because of its superior customer support and quality ingredients utilized in its products. The company’s insufficient solid franchise model became available an unexpected to numerous, since McDonald’s had a huge effect on Chipotle’s corporate operations during the eight years of financial involvement and assistance, not to mention the former’s role in Chipotle’s rapid expansion to over 547 stores in 26 US states. Ells stayed within the company through the transition from private management to some restaurant backed up by a public corporation. Ells has not yet dismissed the concept of selling Chipotle franchises in the near future to interested fast food franchisees, for the time being, he still maintains the operations as they are. This gives him additional control over the company’s processes and also offers existing employees chances to ascend the corporate ladder as store supervisors and managers when new Chipotle fast food franchises open. The business strongly values and believes inside the “promote from inside” culture.
Additional Chipotle Franchise Information and Costs
Buying fast food franchises may cost a lot of money. Most parent companies ask for a preliminary franchise fee that may go up to $25,000 and even higher. Ongoing royalty fees required from all of franchisors, vary from four to eight percent of the net profits. Companies raise capital in franchising, wherein they enable entrepreneurs to control their particular businesses with less supervision. In the case of Chipotle, it offers enough cash to invest on continuous expansion with out the requirement to provide a Chipotle franchise to outside investors. The management’s long term expectations add a constant financial development of 25 % annually, should Chipotle lynhuc more than a hundred fast food locations within the next 5 years. Financial sources are easily available since Chipotle is really a public corporation. The marketplace capitalization of Chipotle is finished $1.8 billion, and features yearly revenue in excess of $775 million. Its net income is approximately $34 million every year, with a 5 percent profit margin, the average in the fast food field. Chipotle also offers a remarkably small debt, which indicates how promising the business is in terms of profitability.