Fools,I have to tell you I have mixed feelings about what is going to happen tomorrow. A Chipotle restaurant is opening in my neighborhood. A long walk from my front door but on one of the routes I can take home from the office at night and easy to do a pick for a quick family dinner (my two daughters are fans and my wife likes the taste but not the portions). I am excited by the proximity to home and the convenience.My concern stems from the location. Most urban stores are located near heavy foot traffic areas near large office buildings or college campuses. The locations near my office are in suburban malls or in stand alone buildings and draw on office folks during the lunch hour and the nearby bedroom community folks for dinner.The location that will open tomorrow is odd. I don't see how it is going to really sustain a large lunch hour crowd during the week. It is near the Ft. McHenry exit (#55) on I95 and the UnderArmour corporate headquarters in Locust Point. There are a number of small businesses in the area. The T.Rowe Price and Legg Mason headquarters are nearby but there is another CMG in the inner harbor closer to those offices. I don't see the large numbers of businesses to fuel the lines at lunch. In addition, the number of small restaurant/bars in the area who all have their set of regulars should be decent competition for those dinning dollars for both lunch and dinner (one of my favorite places in the neighborhood that is at a similar price point is a place called Baba's Kitchen which will be just a couple of blocks from CMG, I know the owner there and love his food, we might pick felafel, hummus and kabobs over burritos).I just don't understand how this location is going to generate the type of returns that we have come to expect from CMG stores. I know I have always said that I thought CMG could be 3,000 unit concept without oversaturation but I might have some concerns about that idea now. I think CMG might have "jumped the shark" here.Believe me I will keep a close eye on the new store and post a follow up in a couple of weeks. Until then, wish me luck as I wade into the crowd tomorrow night to pick up our first CMG dinner from "our" Chipotle as my daughters have already started calling it.Fool on!Bruiser
Weel, it has been 2 weeks. How is the Chipotle store doing?
Funny you should ask...I stopped in last night to pick up dinner for the family using the online ordering tool (How smart am I!). What did I find? 8 non employees in the store eating; no line; food being prepared ahead of schedule based off on line/telephone/fax orders being placed at the end of the food line cooling; and a staff who while working were probably the least busy CMG staff I have ever seen. Now I am not going to get to excited as my neighborhood is made of up a large number of folks who travel for the holidays. However, it is not encouraging to see a store open less than 3 weeks sitting so empty!Bruiser
I bought the stock with what little cash I had during the crash of 2008 and wish I had hung on to it.The two chipotles stores in my area is usually crowded. I use my App to put in my order. The service is bad unless you speak spanish but the food is usually good.We get a lot of Eastern Indians here because it offers the Vegetarian option. I am bullish for the stock but I like waiting for the panic drops.
Update....My family and I have probably been to the neighborhood CMG about dozen times in the last 4+ months. This is the least crowded CMG I have ever been to. On a number of occasions, my family and I walked right up to the line and ordered. There were probably less than a dozen folks in the store. There have been some occasions when it was crowded but this is when you would expect the store to be crowded. On the positive side, I have to say that the staff have been very friendly and recognize my kids and I despite our infrequent visits.I hope that with the warmer spring weather we might see people utilize the outdoor seating and the traffic will pick up. Regards, Bruiser
Kahuna, CFA wrote:The stock has provided good investor returns, I went to a unit once. Portions are way, way too big for my tastes and appitite. Do not own the stock.Portions are too big, but my hubby and I routinely split a barbacoa burrito which is just about right.I did buy the stock. Wish I had bought more!CCSand
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