Hiding in Plain Sight - The Next Big Thing

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Lane Cardwell

Hiding in Plain Sight
February 11, 2008

Sometimes the best place to hide something is to put it right in front of people and let it become so obvious that no one sees it. I have concluded that is what Chipotle has done. They are not everywhere but they are certainly in a lot of places. What are they hiding so well? The secret to success in the restaurant industry.

In this age of LTO's and two, three and four menu rollouts a year, what is left to impress the guest? I know what Steve Ells, founder and CEO of Chipotle believes. "Let's make what we already sell better." How old school... Certainly not what is popular in the rest of our industry.

Steve is an accomplished chef. His mission is to close the gap on what is possible with their very limited menu when it is executed by a skilled chef like himself, and when it is executed across their 670 locations by the same caliber of employees that the rest of the industry hires. If you want a hint at why they are levitating in an industry that is struggling to stay flat, check out their ingredients on their website.

How often in our meetings, when we discuss products and menu items, do we ever say, "I think we can improve on our (fill in the blank)." We tend to be an industry with no rear view mirror. If it's on the menu it either sells, or it goes off the menu. We don't seem to approach our food with the idea that it is a work in progress. New menu items...very exciting. LTO's...very exciting. Improve what we already have...boring. Don't tell anyone that we improved it...unheard of.

The next time you see Steve at an industry function, an investor conference or at one of his restaurants, let him know that we are on to him and he can't hide anymore. Somehow, I don't think he will be worried.

Posted by Lane Cardwell on February 11, 2008 | Comments (2)

Industries: Expansion, Menu Development, Operations

February 11, 2008
In response to: Hiding in Plain Sight
JIM NORTON NORTON commented:

I think Lane's comments about Chipotle are spot on. Too many concepts neglect the fundamentals of the business and spend time and resources adding "bells and whistles". Many of the new concepts are all about marketing and do not realize that before you can be a great marketing company (like McDonalds) you have to first be a great operating company.

February 11, 2008
In response to: Hiding in Plain Sight
Kreta Reserve commented:

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