The giant Asian restaurant chain closed most locations, no bankruptcy

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The giant Asian restaurant chain closed most locations, no bankruptcy

Dozens, if not hundreds, of restaurants have tried to copy the Chipotle model of offering customized meals made directly in front of customers by workers on the “make line.” In theory, it’s a simple way to offer fresh food that can be customized based on what the customer wants.

The problem is that the devil is in the details. Chipotle has figured out how to deliver the product customers want in an efficient and cost-effective manner.

In fact, the Mexican chain has actually created a fast-food product that is valuable enough for consumers to pay more than they would normally spend.

  • Higher prices than fast food: Average of a Chipotle burrito or bowl $12 to $14That compares to $7 to $11 for a McDonald’s or Taco Bell combo, according to Fox9.

  • Competing in fast casual: Chipotle is about the food 30 to 40% cheaper than premium fast-casual rivals like Sweetgreen or Cava, according to Restaurant Dive.

  • Cost drivers: Prices reflected Fresh ingredients, sustainable sourcing, labor, and generous portion sizesThat differentiates it from typical fast-food operations, reported Food by Andy.

Essentially, the Mexican chain has created something that’s better than fast food without the expense of a traditional sit-down fast-casual restaurant with table service.

“Chipotle Mexican Grill is a category-defining fast-casual brand that combines a focused menu and made-to-order assembly line with speed, personalization, and consistent quality. Its business model combines culinary reliability with operational discipline, using a streamlined kitchen and limited SKUs to drive high throughput and attractive units.

“The result is a differentiated value proposition that blends premium ingredients, transparent preparation, and convenience through in-restaurant and digital pickup and delivery.”

It’s easy to see why restaurant operators would want to copy that model, but the struggles of one chain, Genghis Grill, show how difficult it is to replicate what Chipotle has created.

When Genghis Grill launched in 1998, it was a variation on the traditional Mongolian grill model. It was a build-your-own-bowl model using per-bowl rather than an all-you-can-eat format.

Here’s how it worked.

  • customers Select the raw materialFrom protein, vegetables, sauces, noodles, and spices fresh bar.

  • They Place everything in a large bowl.

  • The bowl is then handed to a Chef at the Grillwhich stir-fries the ingredients on a large circular flat-top grill in front of the customer.

I visited the chain for lunch at a mall in Texas in the 2010s and loved that I could customize my bowl, not pay all-you-can-eat price. At dinner, I might have opted for the AYCE version of the same concept, but getting exactly what I wanted at an affordable price that made for a great lunch offering.

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