chipotle closures

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reymann
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chipotle closures

Post by reymann »

chipotle has closed the downtown slo location and lompoc location as part of the 65 underperforming locations to close nationwide.
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Re: chipotle closures

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I also heard they are moving their headquarters to Newport Beach, CA from Denver...

Funny move as most companies are moving out of California not going there...

It will be very interesting to see what happens with this outfit long term.
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Re: chipotle closures

Post by submariner »

storewanderer wrote: July 28th, 2018, 1:32 am I also heard they are moving their headquarters to Newport Beach, CA from Denver...

Funny move as most companies are moving out of California not going there...

It will be very interesting to see what happens with this outfit long term.
Their new CEO came from Taco Bell, so I'm sure there's a connection to that
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Re: chipotle closures

Post by storewanderer »

submariner wrote: July 28th, 2018, 7:50 am
storewanderer wrote: July 28th, 2018, 1:32 am I also heard they are moving their headquarters to Newport Beach, CA from Denver...

Funny move as most companies are moving out of California not going there...

It will be very interesting to see what happens with this outfit long term.
Their new CEO came from Taco Bell, so I'm sure there's a connection to that
I heard that was part of the reason for the move. With all of the issues they have had, though I am not entirely sure all of the issues alleged were entirely true, they have really hurt this company. I am not really sure how moving the HQ to CA is going to address any of their problems. They have a customer perception problem, a ton of competition, and their restaurant volumes have dropped in a lot of locations significantly (but some of their locations are still the old "line out the door" situation). I know the Chipotle near where I work used to easily run about 800 customers a day, the volume was very impressive; after the whole food contamination situation, at its worst it was under 300 customers some days the whole day, now it is back around 500 customers a day. Business just went off a cliff and I am not sure it will ever get back to where it was.

I think Chipotle needs to foster its higher volume locations, just close down the lower volume ones, and look for more of the types of locations where they can enjoy the high volumes that they used to enjoy everywhere. For the format to work right, you need high volume, or the food sits around and quality is impacted by dry meats and not so fresh produce. Initiatives like "late night menus" do not fit the format; they aren't a drive through, late night will never be high volume enough to allow for proper food freshness, etc.
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Re: chipotle closures

Post by storewanderer »

https://www.denverpost.com/2018/05/23/c ... alifornia/

This article seems to explain the situation. Closing offices in NY and CO, and will relocate all corporate functions to either Newport Beach or Ohio. I suspect executives to Newport Beach, everyone else to Ohio. I guess we will see.
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