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PhilTake #21 - The Promise

Every business has six critical elements called Morphemes. Morpheme #1 is The Premise (covered in PhilTakes #16-20). Morpheme #2 is The Promise. What is the company’s behavior delivering on the premise?

Chipotle’s premise has always been its dedication to naturally grown ingredients. With over 2,000 locations and robust sales, its premise appeared solid.

However, a strong premise is not enough. There must be systems and processes in place to support the premise, or mistakes can happen – creating negative impact. According to Motley Fool, Chipotle’s “food safety scandal hurt the chain, sending sales plummeting…. with comparable sales for all of 2016 down 20.4% while overall revenue fell 13.3%.”

Fortunately, the article goes on to state that Chipotle’s same-store sales are now rebounding and references a survey indicating the once-popular chain has reclaimed U.S. consumers’ top spot for Mexican food.

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