This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
TheStreet Open House

Chipotle's Monty Moran Unwraps the Restaurant's Success Story

Sozzi: Do you compensate those restaurants knocking the cover off the ball in terms of throughput?

Moran: We don't necessarily have financial incentives, occasionally we run throughput contests to see how much various restaurants can increase their throughput speed. The real incentive is when we rate field leaders at the end of the year, the No. 1 thing we rate them on is developing great teams and then, how well they are adhering to the four pillars of throughput. When they have great teams, they distinguish themselves very, very quickly as one of our very powerful leaders. Given how badly we need leadership in our organization, they become the big leaders. They are the ones who get the promotions, become team directors, and ultimately executive team directors.

Sozzi: With the success of Chipotle inspiring the next generation of fast casual restaurants, I am curious what you are seeing in the market right now.

Moran: Certainly I get a lot of emails about people knocking us off directly or who are starting the Mediterranean version of Chipotle, or the pizza version of Chipotle, there a lot of players in that space. I wouldn't say we are insular. But we really appreciate anyone doing food well, and we visit fine-dining restaurants to see what they are doing with food. What we are doing is pretty unique though because of the scale. When you have 1,700 restaurants you have to find a way to sustainably build more restaurants, especially when you own them all like we do, none are franchised, you have to find a way to keep them all running well.

We are really encouraged by how many other restaurants are trying to do something with responsibly raised ingredients, or organics, or local products, or whole ingredient. We are very encouraged by that because we think that the more that folks get into making food that actually matters and is better for you, the more traditional fast food becomes irrelevant and starts to fade away.

Our mission is to change how people eat fast food. In order to do that, there are a few ways. Build more Chipotles. That is one way. No. 2 is to get into different types of cuisine, as with ShopHouse and Pizzeria Locale. But another way you change fast food is by causing customers to understand how irrelevant traditional fast food is, by traditional fast food I mean where the predominant goal is the cheapening of the raw ingredients, the automation of the work such that anyone could do it that you don't need training so that they turn over their employees without any care for them, where it's a game of value meals and cheapening and cheapening the food experience. That is traditional fast food, and we think that's going away. We, and others like us, will replace that.

Another way is that others copy you. The fourth way is you get suppliers to start thinking how they raise food differently because there are more folks like Chipotle, they will have to do things according to our protocols. A fifth way is changing customer perception so that customers are aware where their food comes from and start making demands of grocers and restaurants to provide food in a way that makes sense to them. A sixth way, just educating folks who may not care because they don't know, but once they know may care.

At the time of publication, the author held no positions in any of the stocks mentioned.

This article is commentary by an independent contributor, separate from TheStreet's regular news coverage.

3 of 3

Select the service that is right for you!

COMPARE ALL SERVICES
Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
DOW 17,279.74 +13.75 0.08%
S&P 500 2,010.40 -0.96 -0.05%
NASDAQ 4,579.7890 -13.6380 -0.30%

Brokerage Partners

Rates from Bankrate.com

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs