Chipotle. Too big to stay good.
Chipotle reported its first sales decline since 2016 and still opens a restaurant every day. That is how you kill a premium brand.
THE GIST ON CHIPOTLE: "Too Big to Stay Good"
What is going wrong at Chipotle?
Sales fell by 2.5%. Yet last year it opened 334 restaurants, and it plans 370 this year. It is the classic case of choosing efficiency over quality, short-term growth over long-term loyalty.
Why does growth kill premium brands?
It is the standard pattern when a premium brand goes public: they scale everything but the product. The things that justify the premium prices are the first to go when you prioritise efficiency and growth, and ironically they were what made the business viable.
Where does that leave Chipotle?
Too expensive to be fast food and too inconsistent to be worth it. Stuck in no man's land, in the elephant graveyard of brands.
Does a chain get worse as it grows?
Your take. One tap, then see how everyone else voted.
Quick answers
How much did Chipotle's sales fall?
By 2.5%, its first decline since 2016.
How many restaurants did it open last year?
334, with 370 planned this year.
What is the pattern?
Premium brands scale everything but the product, and lose what justified the price.
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