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Smq1 10 Essay

455 words - 2 pages

an affordable price in a bilingual
As a franchisor, Swad avoids
three practices prone to generating
ill will and mistrust among licensees:
operating stores in the
same markets as franchisees, redirecting
advertising funds into unrelated
areas and developing alternative
revenue streams (such as
rebates) from preferred suppliers.
Ultimately, Swad believes the
success of a concept depends on
seven ingredients:
1. A great product
2. An idea with broad appeal
3. Good unit economics
4. A strong brand identity that
“carries through everything”
5. a consistent look and feel
6. Intimate knowledge of the
market and customer
7. Strong, committed leaders ...view middle of the document...

Melman, who has created dozens of unique and cutting-edge concepts
over the years, is the founder of the country’s greatest multi-concept
empire, Lettuce Entertain You Enterprises.
Editor Mike Sanson, commenting on last year’s winner–Ted’s Montana
Grill–said finding the next winner was no easy chore. After all, he
pointed out, how many restaurant companies have media mogul Ted
Turner’s deep pockets and relentless spirit?
As it turned out, Chipotle Mexican Grill was more than up to the
Back in 1993, CIA-trained chef Steve Ells borrowed some bucks
from his dad and opened a humble 20-seat burrito joint in Denver. It
was a hit and Ells opened a second
unit, which followed suit.
Ells eventually sent his business
plan to McDonald’s, which agreed to
partner with him. The rest, as they say,
is history. There are now more than
375 Chipotle Mexican Grills in 20
states, and it’s poised to grow for
Sanson pointed out that it wasn’t
just the numbers that led the RH editors
to select Ells and Chipotle for the Melman
Award. Ells got the nod, he explained, because of
the socially conscious manner in which he has run
the business.
Ells’ motto for his chain is Food With Integrity,
and every aspect of the chain is operated with a high
level of integrity. On top of that, Ells is helping
change the face of family farming in America. Each
time a new Chipotle unit is added, a new family farm
is brought on board to supply the high-quality livestock Ells demands.
“Chipotle is not Steve’s business,” said Sanson, “it’s his passion.”

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