Chipotle, which once was under McDonald’s investments, is now a big competitor for the multi-billion dollar company.
Back in 1998 burger chain McDonald’s held a 90% share in Chipotle Mexican Grill Inc and was a big reason for their success. With their help Chipotle grew from just 14 locations to over 500 in just seven years.
But the company went through many complications because of McDonald’s attempt to control Chipotle. Business Insider reports that McDonald’s had suggestions such as adding drive thrus and serving breakfast, changing its name by adding a ‘Fresh’ to it, making its menu specific to each area, and controlling its commercials.
“I would think of it in terms of McDonald’s being the rich uncle and Chipotle as the petulant nephew where we take the money and are grateful but are stubborn and strong-willed enough that we’re going to do what we want with it anyway,” A Chipotle spokesman Chris Arnold told Bloomberg.
Since McDonald’s sold their share, the Chipotle chain’s stocks have risen from $42 to $650.
McDonald’s may have to worry for the simple reason that, with everyone becoming educated in health andethical choices, Chipotle sounds more appealing.
With Chipotle’s “food with integrity” moto they ensure use of naturally-raised and organically-produced food, which is something the average fast food restaurant does not usually produce.
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A small menu may seem unappealing, but with Chipotle’s menu the customer has the option to uniquely custom make their meal. It can also help them remember the menu for the next visit.
Chipotle is corporate-owned, not a franchise. Many view franchises negatively with cheap suppliers and low employee wages.
Chipotle is a delectable mix of both fast food and sit-down dining. An easy decision for any customer when contemplating what to eat in a hurry.
Chipotle isn’t McDonald’s only competition; other growing chains like burger joints Shake Shack and Five Guys and chicken competitors Chick-fil-A are becoming popular as well.
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In attempts to regain their popularity McDonald’s has tried many stunts over the years that all have yet to succeed.
Not too long ago they tried introducing chicken wings to their menu but it did not catch enough popularity to last.
They tried following the hashtag trend with their own #McDStories. The hashtag ended up being used negatively on social media sites and hurt the company instead of helping.
Having numerous bad reputations on their food quality, they announced that they would not use chicken raised using antibiotics in their products.
They raised their workers salaries and even gave out paid vacation days to some employees and for student employees, giving them financial assistance.
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