Chipotle 2013 Annual Report Download - page 6

We also seek to use more sustainably grown produce, meaning produce grown by suppliers who we believe
respect the environment and their employees. A portion of some of the produce items we serve is organically
grown, and/or sourced locally while in season (by which we mean grown within 350 miles of the restaurant
where it is served). A portion of our beans is organically grown and a portion is grown using conservation tillage
methods that improve soil conditions, reduce erosion, and help preserve the environment in which the beans are
grown. Our commitment to Food With Integrity extends to the dairy products we serve as well. The sour cream
and cheese we buy is made with milk that comes from cows that are not given rBGH (recombinant bovine
growth hormone). Also, milk used to make much of our cheese and sour cream is sourced from pasture-based
dairies that provide an even higher standard of animal welfare by providing outdoor access for their cows.
Further, we disclose on our website which ingredients contain genetically modified organisms, or GMOs, and we
are working to replace ingredients containing GMOs in our food (not including beverages) with non-GMO
ingredients. While the meat and poultry we serve is not genetically modified, the animals are likely fed a diet
containing GMOs. Because of the prevalence of GMOs in a number of important feed crops, most grains used as
animal feed in the U.S. are genetically modified.
We do face challenges associated with pursuing Food With Integrity. There are higher costs and other risks
associated with purchasing ingredients grown or raised with an emphasis on quality, environmental sustainability
and other responsible practices. Growth rate and weight gain can be lower for chickens, cattle and pigs that are
not fed subtherapeutic antibiotics and for cattle that are not given growth hormones. Crops grown organically or
using other responsible practices can take longer to grow and crop yields can be lower. It can take longer to
identify and secure relationships with suppliers that are able to meet our criteria for meat, dairy and produce
ingredients. Given the costs associated with what we believe are responsible farming practices, many large
suppliers have not found it economical to pursue business in this area. However, we believe that in addition to
seeking great tasting and nutritious food, consumers are increasingly concerned about where their food comes
from and how it is raised. And we believe that as consumers become more educated about better animal welfare
and farming practices as well as social accountability, they will foster greater demand for sustainably grown
foods in the long term. We believe that increased demand over the long term for the types of meat and produce
items we strive to serve will continue to attract the interest and capital investment of larger farms and suppliers.
We also understand that we’ll continue to be at the forefront of this trend and must balance our interest in
advancing Food With Integrity with our desire to provide great food at reasonable prices. If we are able to
continue growing while focusing on Food With Integrity, our sourcing flexibility should improve over time,
though we expect that most of these ingredients and other raw materials will remain more expensive than
conventionally raised, commodity-priced equivalents.
A Few Things, Thousands of Ways. Chipotle restaurants serve only a few things: burritos, burrito bowls,
tacos and salads. But because customers can choose from four different meats, two types of beans and a variety
of extras such as salsas, guacamole, cheese and lettuce, there’s enough variety to extend our menu to provide
countless choices. We plan to keep a simple menu, but we’ll consider additions that we think make sense, such as
the recent introduction in select markets of Sofritas, our new vegan protein option made with braised organic
tofu. And if customers can’t find something on the menu that’s quite what they’re after, we encourage them to let
us know. If we can make it from the ingredients we have, we’ll do it.
In preparing our food, we use stoves and grills, pots and pans, cutting knives, wire whisks and other kitchen
utensils, walk-in refrigerators stocked with a variety of fresh ingredients, herbs and spices and dry goods such as
rice. Ingredients we use include chicken and steak that is marinated and grilled in our restaurants, carnitas (seasoned
and braised pork), barbacoa (spicy shredded beef) and vegetarian pinto and black beans. We add our rice, which is
tossed with lime juice and freshly chopped cilantro, as well as freshly shredded cheese, sour cream, lettuce, peppers
and onions, depending on each customer’s request. We use various herbs, spices and seasonings to prepare our
meats and vegetables. We also provide a variety of extras such as guacamole, salsas and tortilla chips seasoned with
fresh lime juice and kosher salt. In addition to sodas, fruit drinks and organic milk, most of our restaurants also offer
a selection of beer and margaritas. Our food is prepared from scratch, with the majority prepared in our restaurants
while some is prepared with the same fresh ingredients in larger batches in commissaries.
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Annual Report