In Practise Logo
In Practise Logo - Blue
In Practise Logo
Partner Interview
Published December 8, 2025

Chipotle Mexican Grill: Competiton, Unit Economics & Management

Executive Bio

Former Regional VP at Chipotle

Summary

Subscribe to access hundreds of interviews and primary research

Or contact sales for full access

Interview Transcript

Disclaimer: This interview is for informational purposes only and should not be relied upon as a basis for investment decisions. In Practise is an independent publisher and all opinions expressed by guests are solely their own opinions and do not reflect the opinion of In Practise.

This is a snippet of the transcript.to get full access.

How long does it take for a new location to fully ramp up?

Chipotle starts strong, with the first two to three weeks being overwhelmingly busy. It then settles to a natural level. After three to four months, it stabilizes, and after a year, it reaches the comp base. As long as sales projections are realistic, it takes only three to four months to settle in.

This is a snippet of the transcript.to get full access.

Do you think that's just a trend, or is there a bottleneck that limits sales? Is it the customer, or is there something about the actual throughput?

Well, I would say that $8,000 is the average for Chipotle. Urban restaurants that need to focus on throughput do $10,000, $12,000, or $13,000 a day. They also have a lot of catering. Those urban restaurants that focus on throughput handle 50 to 60 guests in 15-minute peaks, whereas the average restaurant might do 20 or 25. The mistake is treating all units the same. If I'm doing 50 guests in 15 minutes, I need to focus on throughput, put my head down, and go. But restaurants doing 22 transactions in 15 minutes are slower and need to be friendly, clean tables, and help the digital team. The bottleneck is treating all units like they're the same, like having two 18-year-olds and two 4-year-olds and treating them the same. The younger ones won't survive.

This is a snippet of the transcript.to get full access.

Is it the way to go? Maybe, I don't know. I guess they don't necessarily think about discounting or promotions that are more price-sensitive, do they?

Brian was a strong advocate for this, and I think Chipotle still maintains that Chipotle is not a discount brand. The average consumer at Chipotle earns $80,000 a year, while the average McDonald's customer earns $60,000 a year. It's a different customer base. When I was at Jack in the Box, we would increase discounts to drive transactions. The Chipotle consumer wants a full portion, really healthful quality food, and the convenience of getting it where and when they want, which is a combination of digital and physical locations.

This is a snippet of the transcript.to get full access.

Free Sample of 50+ Interviews

Sign up to test our content quality with a free sample of 50+ interviews.

Or contact sales for full access

© 2024 In Practise. All rights reserved. This material is for informational purposes only and should not be considered as investment advice.