The Rise of Chipotle and Other Affordable, Fast "Mexican" Chain Restaurants

The sit-down/fast food hybrid Mexican restaurant has taken off quickly in America. It is almost impossible to walk several blocks without spotting a Chipotle, Qdoba, Baja Fresh, or other similar chain.

The appeal of Chipotle makes sense: high quality food at an affordable price, made in a short period of time. Chipotle (and its competitors) use a quick "assembly line" to create meals right in front of the customer; this insures freshness and also engages the customer directly, reducing food order errors and also decreasing average serve time to near fast food levels.

Chipotle also is adamant about playing good music in its stores, tries to offer alcoholic beverage options whenever it can secure a liquor license at one of its locations, and is generally a bit more "cheerful" than the average fast food restaurant. In addition, Chipotle (and some of its imitators) boast about using natural ingredients, ecologically sound food sources, and in the case of Chipotle much of its meat is now growth hormone free and free-range.

Although this adds to the cost of production, it creates tremendous brand goodwill, and also helps to boost the company's word of mouth profile.

I don't think that the Mexican restaurant model pioneered by Chipotle is going out of style any time soon. If anything, interest in these restaurants will only grow -- I see it conceivable that within five years, large restaurant chains will explore the possibility of sit-down/fast food hybrids for other ethnic foods: Chinese, Indian, and Thai being the most likely choices.

Such restaurants would conceivably use the same assembly line strategy and hip marketing to youth consumers, and may flaunt the quality of the food product used (perhaps "no MSG" would be a selling point for Chinese food).

Interestingly, as these companies grow more successful and gain market share, their costs decrease: they can place ever-larger orders from food distributors at greater discounts. Whether this will convert to lower costs for diners is another story altogether!

Chipotle, Qdoba, and Baja Fresh have become household names, paving the way for a new generation of healthier, slightly more conscientious "fast" food. There will always be a place for McDonald's and Burger King, but these new Mexican chains offer consumers with greater choice and a more "eco-friendly" option when eating out.