Q4 2013 Earnings Call Transcript

Transcript Call Date 01/30/2014

Programs like Scarecrow and Farmed and Dangerous are one facet of our overall marketing, designed to show customers how Chipotle is cultivating a better world. We're also making progress with other components of our marketing, including our traditional advertising and our local marketing programs.

We continue to run traditional advertising in many Chipotle markets around the country and just wrapped up a campaign in support of our catering program. We also have a full slate of local marketing programs planned for markets around the country, such as our Cultivate Festivals, which will be held this year in San Francisco, Dallas and Minneapolis.

Last year these Cultivate Festivals grew nearly 100,000 attendees in total and with advertising and PR support, they reached significantly larger audiences. What's more, these programs are proving to be very popular with post-event research showing us that more than 90% of attendees in each market would attend the event again.

All of these things that we're focused on, our food culture, our people culture, the unique way in which we market Chipotle demonstrate how we are changing the way people think about any fast food, but we also know that to really change food culture and to reach even more people is going to require that we serve more than burritos and tacos. That's why we developed ShopHouse, which follows the same model as Chipotle by using delicious quality ingredients, classic cooking techniques and emphasizes a culture of top performers being groomed to be the future leaders we will need to support our growth.

It is why we have made an investment in Pizzeria Locale, which we just announced in December. Pizzeria Locale began as a casual dining restaurant in Boulder, Colorado. It was started by master sommelier Bobby Stuckey and executive chef Lachlan Mackinnon-Patterson, who met while working at The French Laundry, Thomas Keller's legendary French restaurant in Yountville, California in the Napa Valley. Bobby and Lachlan are extraordinary restaurateurs. Their first restaurant, Frasca Food and Wine, is nationally acclaimed.

Since meeting them over 10 years ago at Frasca, we've had recurring conversations about how we can one day work together. When that conversation led us to the possibility of developing a fast casual version of Pizzeria Locale, we knew that was the right opportunity. In the Chipotle format, Pizzeria Locale uses the same ingredients as the original Pizzeria Locale in Boulder and makes pizzas inspired by the Neopolitan style with exceptional attention to detail.

To make this concept work, where volumes are high and customers expect food to be served quickly, we designed a special pizza oven that delivers the results of the Italian wood-burning oven they use in the original restaurant in Boulder while cooking pizzas perfectly every time in less than two minutes. Like Chipotle, Pizzeria Locale has a focused menu and an interactive service format that allows customers to customize their order. In addition to a selection of classic and custom pizzas, customers can enjoy an array of salads, meatballs, sliced order prosciutto, red or Italian wine and a caramel and chocolate pudding called Budino.

Read our Earnings Call Transcript disclaimer.
Add a Comment
E-mail me new replies.