Chipotle is becoming a huge hit in small towns, and it's hurting chains like Chick-fil-A, McDonald's, and Texas Roadhouse
But the chain launched its small-town growth strategy 18 months ago when executives noticed some stores in smaller cities were outperforming other restaurants, according to the Journal. The executives"started crunching numbers" on locations like Camden, Delaware, and Battle Ground, Washington, the Journal said.
Chipotle Chief Financial Officer Jack Hartung told the Journal that some of these restaurants in less populated towns are opening with two to three times the sales of an average Chipotle. Restaurant consultant Tim Powell said Chipotle is likely getting a boost in traffic from Gen Zers and millennials, who like to support brands that share their same ethos.
"I think Chipotle is a brand that Gen Z and millennials recognize. Its higher price points and positioning as asocially conscious brand will go farther with 18-34 year-olds but not so much with rural Gen X or Boomers," said Powell, the managing principal at the industry consultancy Foodservice IP.Still, he said it's a risky move for Chipotle to expand into territories that are less dense, more fragmented, and less likely to spend money on restaurants.
Chipotle isn't betting all of its growth on small towns. On Tuesday, Chipotle, which has restaurants in Canada, the UK, France, and Germany,Are you a fast food insider with insight to share? Got a tip? Contact this reporter via email at
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