Competent Distinctiveness

“Chipotle Mexican Grill has arguably become the country's most successful fast-food chain in recent years by rejecting almost every major technique on which the industry was built. Not only does it not show the product, it doesn't advertise on television. It doesn't franchise. It has some of the highest ingredient costs in the industry. And its executives aren't especially concerned that customers wait as long as 10 minutes in lines that routinely stretch out the door.

“Nonetheless, Chipotle's shares have more than doubled in the past year, making it the best-performing publicly held U.S. restaurant chain. And while traditional fast-food chains are posting same-store-sales growth in the low single digits, Chipotle has increased its same-store sales at a double-digit rate each year for almost a decade…

“Of course, consumers are fickle when it comes to restaurants, making it difficult for chains to maintain success over time. Chipotle's narrow menu could make it hard for the chain to hold customers' interest…

“Chipotle knows it has a problem with long lines at peak times. The chain has videotaped as many as 50 people walking away from a single location in one hour because they weren't willing to wait.

“Chipotle's president and chief operating officer, Monty Moran, says the company has been trying to speed up the lines by installing automatic change machines at cash registers and using handheld credit-card devices to take orders from customers in line. It also is placing greater emphasis on its restaurant managers, paying them annual salaries and bonuses that total in the six figures.

“But executives say that while the lines are long, they move quickly. And, ‘we don't ever want it to be speed over great service,’ Mr. Moran says.”

(“Burrito Chain Assembles a Winning Combo; Ignoring Fast-Food Formula, Chipotle Promotes Service, Costly Natural Ingredients.” Janet Adamy. Wall Street Journal: November 23, 2007. pg. B.1)

WHY AND FOR WHAT are customers are paying upwards of $6.00 for a burrito? Is it fast service? Is it quality service? Is it socially responsible ingredients? Is it flavor and freshness?

SO AS COMPETITIVE pressures appear to push management toward non-core competencies, and as operational pressures push costs upward, what needs to be the focus?

ARE YOU COMPETENTLY DISTINCTIVE and distinctively competent?