Like most businesses, success in the restaurant industry requires a forward-looking mentality. Whether using a crystal ball, your keen insight, or a strong intuition that fearlessly propels one forward, staying ahead of the curve helps ensure success.
As Albert Einstein said, “The intuitive mind is a sacred gift and the rational mind is a faithful servant.”
There is, however, another approach to looking ahead, and that’s by keeping tabs on what the leaders in the industry are up to. In our industry, one of the most successful brands is Chipotle Mexican Grill. In 2023, sales of about $9.9 billion made it the second highest-grossing chain in the U.S. Since its IPO in 2006, its stock has risen from $42 to more than $650.
It’s also proven to be fearless in the face of challenges and innovative when they strike. They’ve faced unique supply chain issues, including food safety, and, in response, put a new supply chain team and contingency plans into effect to support them during disruptions.
All this is to say that keeping a watchful eye on their direction can help us mere mortals in the industry stay abreast of the changing landscape that is the restaurant industry. Let’s see what they’ve been up to as 2025 nears.
Cultivate Next
A few years ago, on a mission to “Cultivate a Better World,” Chipotle created Cultivate Next, a $50 million venture fund financed exclusively by the chain. It provides early-stage investments with a strong focus on emerging technologies and sustainability.
Past investments include Zero Acre Farms, a company that produces healthier, cleaner cooking oil made from sugarcane plants. It’s also invested in Local Line, a local food sourcing platform, and GreenField Robotics, a company committed to reducing chemicals in food by using robots to get rid of weeds and eliminate the need for toxic herbicides.
Today’s Investments
Their most recent investments include Lumachain, an AI supply chain platform, and Brassica, a six-unit Mediterranean concept.
Supply Chains Revisited
Since the company’s supply chain upheavals, they have invested heavily in technology designed to enhance traceability and reduce food waste. The Australian-based Lumachain uses AI and other cutting-edge technologies to provide extreme traceability in the food supply chain, better yield, and enhanced safety. Their platform traces meat, including individual cuts, through the global supply chain.
Lumachain is designed for primary and secondary meat processing plants and includes software that tracks the origin, location, and condition of the food in real-time. Its computer vision AI also analyzes production facilities to improve safety, increase efficiency, and reduce waste.
Going in on Healthy Mediterranean
Chipotle’s other recent investment is Brassica, a health-conscious brand offering a similar experience to the Mexican grill. Named after the highly nutritious family of vegetables, the brand features artisan tahini, antibiotic-free meats, and organic whole wheat pita. It also works extensively with local farmers and craft brewers. Opening in 2015 in Columbus, Ohio, its focus remains on traditional Mediterranean flavors and organic, sustainable practices. They will use this latest influx to open new locations and enter new markets.
Brassica is the first restaurant concept the Cultivate Next fund has invested in. According to Restaurant Dive, “Chipotle, which is dominant in the Mexican fast-casual sphere, may be feeling pressure from Cava. Cava went public last year and has been one of the major restaurant success stories of 2024, with sales up and new openings performing well. By throwing its weight behind an emerging fast-casual brand, Chipotle could insulate itself from competition from outside its immediate market segment.”
EMERGING
At Emerging Concepts, we partner with brands like Brassica to support their growth through extensive research, data analysis, and surveying the national landscape in search of ideal locations for their unique concept. To learn more about our approach that enhances profitability while reducing risks, contact Emerging Concepts.
