Clean Eating Movement: Chipotle and Panera go head to head.
The Clean Eating Movement has been gaining steam for a few years now, and while it has its base back in the 1960’s, it has gained considerable steam in the United States. Consumers want to be more informed about their food choices. Movements such as the Paleo diet, non-GMO (genetically modified organism) and eat local have begun to influence choices offered by restaurants.
Until relatively recently, a diner who wanted to eat clean had limited choices when eating out. They could order a salad, with no guarantee that the ingredients were organic or sourced locally or stay at home. Today, the popularity of the clean eating movement has become so large that many restaurants are now finding ways to include healthier meal choices on their menus. Recently, even restaurants that are considered “fast food” have embraced the clean eating movement. Chipotle announced in April 2015 that they would be removing GMO food from their menu entirely. Panera Bread, calling themselves “advocates for clean food,” recently announced a plan to eliminate artificial flavors, sweeteners, colors, and other additives from their menu. These are the first chain restaurants to embrace the movement with more than just lip service.
In what could only be seen as a surprising move, Chipotle removed pork products, including their best-selling Carnitas, from their menu when the supplier could not provide non-GMO pork. While the corporate arms of Chipotle and Panera realize that sales may take a hit as traditional items are removed from the menu, they believe that clean eating is enough of a consumer concern to outweigh the loss of sales. In other words, they think that more people will come to them for healthier, quick eating options in a world saturated with fillers, greasy fries, and artificial colors.
As an industry trend, clean eating is gaining momentum. Since these companies have made their public announcements, we’ve seen more examples of other chains which are more concerned with consumer issues than the financial bottom line. Pret a Manger, a small chain based in London, has been noted for its menu, and its practice of giving daily leftovers to local food banks. In-and-Out Burger has been heralded for its use of additive and preservative free beef, that they grind in-house.
It will be awhile before we know if this is a financially viable move for these companies, although early reports look positive. For the fiscal quarter that ended in March 2015, Chipotle (CMG) reported $3.88 earnings per share; for the fiscal quarter that ended in June 2015, Chipotle reported $4.45 earnings per share (Source: NASDAQ. If we continue to see this kind of growth in earnings, we predict that more restaurants will follow Chipotle’s lead.
For restaurant consulting services contact TRG Restaurant Consulting at 877-777-6175 or info@TRGrestaurantconsulting.com
