In the 21st century, the pace of life has increased. People are more busy, engaged in their work. Most people don’t even get any time to cook their food before or after they’re done working. The majority of the people prefer to eat fast food over cooking home-cooked food since it saves time. Here, the topic is- Who Owns Chipotle?
Surveys have shown that over a third of Americans consume fast food daily. Preferring food that is portable, healthy, and filling at the same time, three squares which not all companies can check together. Chipotle is one of the few brands that provide value for money fast food along with taking the proper safety precautions required.
What is Chipotle?
Chipotle is the largest Mexican fast-food grill chain, envisioned initially as a small business, which eventually turned into a mega empire. It has become synonymous with Mexican fast food. With over $7 billion in net income, adding in close to a whopping $2 billion last year alone. As of 2021, Chipotle has over 2,800 restaurants and has over 80,000 employees on its payroll.
Wonder who owns such a successful and popular fast-food company? We have explained just that in this article!
Who Owns Chipotle?
Chipotle isn’t owned by an individual, rather a large group of institutional investors and shareholders. Steve Ells is the founder and former CEO of Chipotle Mexican Grill (CMG). CMG started trading at NYSE (New York Stock Exchange) and went public in 2006, doubling the original stock price in less than a day shortly after McDonald’s left the company. The financials of Chipotle during Q3 of 2020 earnings were revealed to be a whopping $1.6 billion, with a 14% increase over the last year.
Though largely an investor-run company, there are a few key figures that have helped in the formation and success of Chipotle, as it does not lie solely in the hands of a single individual. Going through many changes and collaborating with various companies. The credit belongs to many people. Below are some key individuals responsible for the success of Chipotle.
Key People At Chipotle
Steve Ells
Steve Ells is the founder and former CEO of Chipotle. Ells has been serving as the director of CMG since 1996 and was appointed as the chairman in 2005. Being the leader of one of the largest fast-food chains in the world is no easy feat. Ells has managed to maintain the image of Chipotle as an environment-friendly fast-food chain. Chipotle offers “naturally-raised meat” under the reign of Ells while refraining from the use of GMOs and other added preservatives.
Following a few years of decline in the company, Ells decided to step down as there was a need for change in the management. In late November 2017, Steve Ells stepped down as the CEO, and in early 2018, former CEO of Taco Bell, Brian Niccol assumed his position. In early 2020, Ells also stepped down from the position of the board of directors. As of 2021, Ells is the highest individual stakeholder in the company.
Brian Niccol
After Ells stepped down from the position of Chief Executive Officer (CEO) in late 2017, Niccol assumed his position. Before Chipotle, Niccol served as the CEO of Taco Bell from 2015 to 2018, where he also served as the President from 2013 to 2014. Also serving for other fast-food chains like Pizza Hut and also being the chairman for Harley Davidson and Procter & Gamble Co. With him helming the company, they have slowly started expansion into other countries, like Canada and Germany. The company has also seen a steady rise in the number of stores added in a single year, with over 200 in 2021 alone.
Jack Hartung
Hartung has served as the Chief Financial Officer (CFO) at Chipotle since 2002 and PAO since 2010. After close to 2 decades at McDonald’s holding various positions from VP and CFO, Hartung has been with Chipotle for over a decade and a half, clocking his experience in this field for close to four decades! He is one of the largest individual investors in the company.
Montgomery Moran
Moran, the long-time friend of Ells, served as the Co-CEO at CMG from early 2009 to late 2016, at the same time he served as the secretary of the company along with being the President and COO before being promoted to co-CEO. Montgomery Moran is the second-highest shareholder in the company.
Albert Baldolucchi
Baldolucchi is currently serving as the director at Chipotle while being a strategic advisor for various private firms and fast-food chain companies. He has also worked as a banker for various institutions like Morgan Stanley, Montgomery Securities proves him capable enough to be the advisor and director for the company.
History Of Chipotle
Steve Ells, a culinary school graduate was inspired by taquerias (Taco stands) and burritos in San Fransisco. In 1993, Ells with a loan from his father established the first-ever Chipotle Mexcian Grill in Denver, Colorado. Only after a month since opening, Chipotle was selling over a thousand burritos a day. Initial plans to open a fine dining restaurant with the revenue from Chipotle were aborted after the success of the first restaurant.
After the initial success of the first Chipotle and after a few expansions, the restaurant chain showed potential for future success. McDonald’s made an initial minor investment in the company in 1998, it then rose to become Chipotle’s largest investor in 2001 which lead to expansion to over 500 restaurants by 2005. McDonald’s was preparing to divest from Chipotle in late 2006, so they could solely focus on McDonald’s as a brand. Chipotle later bought most of its franchises back and become 100% company-owned.
Job Positions At Chipotle
Crew Member
The job of a crew member is a very entry-level position at Chipotle. It is a great opportunity for new hires to see if they fit in the fast-food industry. Crew Members have multiple daily tasks that they have to carry out. This may include taking orders, serving food, packaging food, preparing food, etc. They also have secondary roles like opening and closing the store, cleaning the store, preparing food ingredients, etc. The crew members are paid $15 per hour, which equates to a total of $23,000 annually with bonuses and incentives.
Grill Cooks
Grill Cooks are given the task of preparing all the food from Chipotle’s menu. The cooks often specialize in working with the grill. There are different types of cooks in Chipotle’s kitchen, some of them handle specialized areas like cooking meats which take time while other cooks work on the spices or other ingredients. The grill cooks have to be very responsible as they have to hand out duties to other employees as well. The Grill Cooks get paid up to $13 an hour which amounts to over $28,000 a year with bonuses and incentives.
General Manager
This is a senior level. The General Manager is in control of managing all of Chipotle’s operations, including purchasing ingredients, hiring and firing staff, kitchen equipment, and supplies, contracts with suppliers and vendors. Along with that, the General Manager also manages the maintenance of the store, along with the scheduling of the staff. They usually work behind the scenes to ensure the smooth running of the restaurant. The General Managers are paid $20 per hour, which results in over $65,000 annually along with bonuses and incentives.
District Manager
The District Managers are responsible for all the Chipotle restaurants that operate in their regions or cities. They have to ensure that all the operations run smoothly, meeting all the safety precautions along with fitting right into the budget. They also have to comply with the marketing strategies and hit the annual sales goals. District Managers are responsible for interviewing and hiring store managers. The District Managers are paid up to $23 an hour, which amounts closely to $72,000 a year.
Conclusion
Chipotle has made a name for itself as one of the top fast-food giants in the 21st century. Quickly rising in popularity, right after their establishment in 1993. In less than 3 decades, they have created a legacy and a landmark in the fast-food industry, offering the best benefits and services, not only for the customers but also for their employees. They also have expanded all over the country, adding over 200 stores in 2021 alone.
Chipotle is known for being one of the first fast-food dining establishment chains. They have also encouraged people of various ethnic groups to embrace and commercialize their culture by inspiring them to set up fast-food chains in their cuisine. Chipotle is famous for offering incredible service and hospitality along with being cultural and setting an incredible example in the fast-food world.
Frequently Asked Questions (F.A.Q.) about Chipotle and Chipotle Ownership
We have tried to cover all the essential information on the ownership at Chipotle. But sometimes the readers may have some queries that the aforementioned article may not cover, below are some frequently asked questions that may solve your doubts.
Q. What if the CEO sells his stocks in Chipotle, will he still be the CEO?
A. Yes! Though CEOs often do not sell the stocks unless they have to vacant the position. The stocks are arbitrary are do not play an important role when it comes to being the Chairperson of most companies.
Q. So if the majority of the stocks of Chipotle are owned by institutional investors like Vanguard Inc. or BlackRock Inc. don’t their owners own the company?
A. The owners do get voting rights, but they do not own the company entirely since some of the shares belong to the clients of the companies and they can sell and withdraw their position any time.