Chipotle Has Jumped the Shark

[TheSlamma]

Again, how is this going to make them anymore money?

If Chipotle is around where you live you either go there or you don't. If you don't eat there now, for whatever reason, maybe you like Taco Bell or some other restaurant, I can't see this decision changing weather people are going to eat there or not.

If people already eat there now and they agree with this decision, it doesn't increase the number of people that will eat there. If people don't agree and stop eating there, then it will definitely make them less money.

I only see this as a money loser. Either because customers don't agree, or customers don't want to pay more for their food whether or not they do agree with this decision.

Blah blah blah MONEY.. blah blah MONEY MONEY blah blah MONEY!!!

 

[thraashman]

The EU requires their bureaucracy approve GMO food. That is where it becomes dangerous imo.

The Daily Show had a segment last week where the field reporter was interviewing an anti-GMO guy with no science background, and a genetic food engineer. And the food engineer pointed out at the end that skeptics of GMO have forced enough regulations that the only companies that can afford to be in the GMO foods game are the large ones like Monsanto, thus creating monopolies.

 

[Carson Dyle]

Some people may be more inclined to visit Chipotle due to this decision.

Without question.

 

[fskimospy]

Again, how is this going to make them anymore money?

If Chipotle is around where you live you either go there or you don't. If you don't eat there now, for whatever reason, maybe you like Taco Bell or some other restaurant, I can't see this decision changing weather people are going to eat there or not.

If people already eat there now and they agree with this decision, it doesn't increase the number of people that will eat there. If people don't agree and stop eating there, then it will definitely make them less money.

I only see this as a money loser. Either because customers don't agree, or customers don't want to pay more for their food whether or not they do agree with this decision.

I imagine Chipotle arrived at this decision after doing some sort of cost benefit analysis. Considering how effectively they've been able to leverage similar ideas in the past, they seem to know what they are doing.

I sincerely doubt they would be doing this if they thought they were going to lose money from it.

 

[xBiffx]

Some people may be more inclined to visit Chipotle due to this decision.

I am sure it might, but does that offset the cost increase the decision is creating? Will that ultimately increase profits? I have my doubts.

 

[smackababy]

I am sure it might, but does that offset the cost increase the decision is creating? Will that ultimately increase profits? I have my doubts.

Chipotle likely understands the people willing to stop eating there is far lower than any potential new customers they will acquire from this move. Plus, the added publicity they generate. I'm sure they've done the math.

 

[TheSlamma]

I am sure it might, but does that offset the cost increase the decision is creating? Will that ultimately increase profits? I have my doubts.

Can you post the figures on how much more it's going to cost them by going to non-gmo? or just scream "money" and "profits" at the top of your lungs all day like your typical run of the mill republican with absolutely zero EQ which then resorts to financials as their only outlet as a measurement of ones intelligence.

Tim Cook told his investors to take their money elsewhere when they asked him to stop bothering with any of his green efforts and they seem to be doing fine.

 

[Fanatical Meat]

Will it make Chipotle-away unnecessary?

 

[xBiffx]

Chipotle likely understands the people willing to stop eating there is far lower than any potential new customers they will acquire from this move. Plus, the added publicity they generate. I'm sure they've done the math.

Shun real customers for potential customers. Sounds like a great business decision. Who knows, it might be one. If you were guaranteed more new customers, heck yeah, but there's no such thing as a guarantee like that.

For me though, I'll keep the real/current revenue stream instead of going to a "potential" stream. Then again, I'm perfectly happy with my current revenue and there is no reason to change. I guess that's not the case for Chipotle. Or this really isn't a decision based on business and just ideology once again.

 

[xBiffx]

Can you post the figures on how much more it's going to cost them by going to non-gmo? or just scream "money" and "profits" at the top of your lungs all day like your typical run of the mill republican with absolutely zero EQ which then resorts to financials as their only outlet as a measurement of ones intelligence.

Tim Cook told his investors to take their money elsewhere when they asked him to stop bothering with any of his green efforts and they seem to be doing fine.

I have no idea but the story is quite clear that it will.

So Chipotle’s flour tortillas are now made with a non-G.M.O. canola oil, which costs more, and the company said last week that it might have to raise prices slightly this year.

Unless they get more customers than they lose by doing this, its not arguable that it will cost them money.

 

[smackababy]

Shun real customers for potential customers. Sounds like a great business decision. Who knows, it might be one. If you were guaranteed more new customers, heck yeah, but there's no such thing as a guarantee like that.

For me though, I'll keep the real/current revenue stream instead of going to a "potential" stream. Then again, I'm perfectly happy with my current revenue and there is no reason to change. I guess that's not the case for Chipotle. Or this really isn't a decision based on business and just ideology once again.

They aren't shunning any customers though. I think the anti-GMO morons are, well, morons, but I don't fault Chipotle for pandering to them. If it doesn't change the quality of their product, I don't really give a shit what they do.

 

[Fanatical Meat]

I have a feeling the extra costs are fairly small like a few percent extra percent.

 

[smackababy]

I have a feeling the extra costs are fairly small like a few percent extra percent.

And even then, if they raised their prices by $0.10, nobody would care and they'd make up for the extra cost (especially considering the additional costs would not be part of the bowls and salads, but the price increase would still bring extra revenue).

 

[Slew Foot]

Anti-GMO people are fucking morons who should take a science class before breeding.

 

[glenn1]

I have a feeling the extra costs are fairly small like a few percent extra percent.

Plus it puts pressure on competitors to match them, which may be a far more expensive and complicated proposition for them. Regardless, this could be an important consideration for consumers who feel strongly about the GMO subject and won't make a bit of difference to most others so there's little risk for Chipotle in this. Sad to say companies are catering like this to scientific crackpot segments (anti-GMO, anti-vaccination, etc.) but there seems to be little downside in it.

 

[werepossum]

Well I wouldn't stop eating Chipotle because they aren't using GMO so long as the taste doesn't dip. When my option for this style of food in the area are Chipotle, Moe's, and Willy's; Chipotle is the far superior option. Enough that cost isn't a factor. But eskimo makes a point in that the overall cost to their business probably won't be very large, but the hipster/ignorant crowd will support them for this. And the rest of us probably won't change our habits regarding them significantly.

Personally, given the option between organic and GMO, I'll pick the GMO every time.

Because . . . ?

Personally if anything it might make me avoid Chipotle because of the projected increase in hipsters, but I don't see why anyone would choose GMO over organic given that GMO is about increasing production (which doesn't directly affect your portion size) by increasing hardiness and natural defenses. Unless one just likes the taste of extra natural pesticides, I suppose.

 

[xBiffx]

They aren't shunning any customers though. I think the anti-GMO morons are, well, morons, but I don't fault Chipotle for pandering to them. If it doesn't change the quality of their product, I don't really give a shit what they do.

How's that? They are increasing prices. And to anyone with a brain, they are charging more for an inferior product. How is that not shunning customers?

 

[smackababy]

How's that? They are increasing prices. And to anyone with a brain, they are charging more for an inferior product. How is that not shunning customers?

Have they even said they were, in fact, going to raise prices? And, how is non GMO inferior? If anything, "all natural" shit is sold regularly as superior than "not all natural" shit. At least, that is how it is in the US.

And, like I said, raising their prices $0.10 or whatever isn't going to turn away customers. Most will, like any rational individual, understand Chipotle can't afford to maintain the same prices as they did in 1995.

 

[fskimospy]

How's that? They are increasing prices. And to anyone with a brain, they are charging more for an inferior product. How is that not shunning customers?

Because if that product makes their customers happier, even if for a stupid reason, they are just responding to the market.

 

[Brainonska511]

Because . . . ?

Personally if anything it might make me avoid Chipotle because of the projected increase in hipsters, but I don't see why anyone would choose GMO over organic given that GMO is about increasing production (which doesn't directly affect your portion size) by increasing hardiness and natural defenses. Unless one just likes the taste of extra natural pesticides, I suppose.

What the hell are you talking about? You think organics don't use pesticides? And plants already produce hundreds of their own pesticides. Chemical warfare is a necessity when you can't get up and walk away from your competition or predators.

Increased production is a good thing - less resources required to get the same amount as an "organic" growth. That means its better for the environment. Organic is a fad based on pseudoscientific reasoning that somehow "natural" is better and the totally false notion that organic means pesticide free. Yet, they all fail to realize, that "natural" things can be pretty bad, like poison ivy, arsenic, and hemlock.

Natural is not synonymous with safe and synthetic is not synonymous with dangerous.

 

[xBiffx]

Because if that product makes their customers happier, even if for a stupid reason, they are just responding to the market.

Yeah, and? If that product makes them lose customers too it better make the ones that stay happy enough to want to shell out more money. That's a pretty big gamble.

My point is that this appears to be much less of a business decision and more of an ideological one. I mean, really, responding to the market? People eating fast food sure are worried about the health benefits of food. That market?

 

[xBiffx]

Have they even said they were, in fact, going to raise prices? And, how is non GMO inferior? If anything, "all natural" shit is sold regularly as superior than "not all natural" shit. At least, that is how it is in the US.

And, like I said, raising their prices $0.10 or whatever isn't going to turn away customers. Most will, like any rational individual, understand Chipotle can't afford to maintain the same prices as they did in 1995.

I think you fail to see the difference between a market increase or natural increase and a self induced or artificial increase. Paying more because everyone's costs are going up is one thing. Paying more because someone makes a decision that makes only their costs go up is quite another.

 

[fskimospy]

Yeah, and? If that product makes them lose customers too it better make the ones that stay happy enough to want to shell out more money. That's a pretty big gamble.

My point is that this appears to be much less of a business decision and more of an ideological one. I mean, really, responding to the market? People eating fast food sure are worried about the health benefits of food. That market?

Yes, that market. One of Chipotle's main marketing efforts has always been that their ingredients come from 'better' sources. They do this for all their stuff, even going so far as to basically stop serving one of their 4 possible meat things for months at a time because a supplier wasn't living up to their sustainability standards.

I mean go look at their website: http://chipotle.com/food-with-integrity It's one of the main focuses of their brand. They shoot for people who are willing to pay modestly more money for food that they believe is better and healthier for them. This may not in fact be true, but that hardly matters from a business perspective.

 

[xBiffx]

Yes, that market. One of Chipotle's main marketing efforts has always been that their ingredients come from 'better' sources. They do this for all their stuff, even going so far as to basically stop serving one of their 4 possible meat things for months at a time because a supplier wasn't living up to their sustainability standards.

I mean go look at their website: http://chipotle.com/food-with-integrity It's one of the main focuses of their brand. They shoot for people who are willing to pay modestly more money for food that they believe is better and healthier for them. This may not in fact be true, but that hardly matters from a business perspective.

ROFL. Thanks for the information. All I can do is point and laugh at those customers. smh

 

[soulcougher73]

How's that? They are increasing prices. And to anyone with a brain, they are charging more for an inferior product. How is that not shunning customers?

You are missing one vital statistic for your opinion. The masses are idiots. Factor that in and get back to us