While the College Park Chipotle continues to be one of the top grossing in the country, it fell to No. 2 last month, largely because of the influx of new restaurants in College Park, company officials said.
In 2003, Chipotle was considered the No. 1 grossing franchise site in the company, at which time it was one of the first Mexican-themed fast-casual restaurants in College Park.
Area Chipotle manager Bob Betlow said he attributes the drop to more restaurants opening in the area, including two Chipotles in Greenbelt and White Oak.
Chipotle’s arrival in College Park in 2001 sparked a wave of fast-casual competitors like California Tortilla, which opened in late 2003, and Moe’s Southwest Grill, which opened three weeks ago.
“Those stores took some of our business away,” Betlow said, but he added the new Chipotle locations have been good for the franchise as a whole, tripling revenue for the Washington/Maryland region of the company.
On a national level, Chipotle continues to be one of the most profitable and fastest growing restaurant chains in the nation, said Chris Arnold, director of marketing.
After investing heavily in Chipotle in 1998, McDonald’s has helped expand the franchise to 420 stores in 20 states. According to the McDonald’s quarterly report, Chipotle had an 11 percent increase in sales in 2004, bringing its total profits to a record high $19 billion.
The report also said the chain is planning to open 100 more stores by the end of the year.
Hector Hernandez, manager for the College Park Chipotle, said a Chipotle in New York currently holds the top grossing position, attributing it to the higher price of the New York location’s food.
The other two Mexican-themed restaurants in College Park have taken a small-business approach to attracting customers to their eateries and away from big-name Chipotle.
Every Monday night, California Tortilla offers patrons a chance to win a free burrito and has more than 40 hot sauces to help spice up their food, said Pam Felix, the franchise owner.
“Our theory is if we are really spunky, we will do just fine,” said Felix.
Moe’s Southwestern Grill is attempting to reach patrons by offering a delivery service, something the other two stores don’t have, said franchise owner Dan Trump.
Trump said they currently have 320 locations nationwide and are planning to open 700 more by the end of the year.
Arnold said Chipotle’s marketing strategy is not driven by the competitors, but by demographics that determine which areas will provide the most robust lunch and dinner crowds.
“Our strategy is not driven by other people in the same area,” he said. “We have a long history operating near colleges and universities.”
Some students have taken a liking to the new restaurants in town.
Freshman letters and sciences major Erica Scott said she prefers California Tortilla because of its bigger menu and hot sauces.
“Everything at Chipotle seems like it’s cooked in grease. California Tortilla seems a lot fresher,” she said.
Jeff Marman, a senior geography major, said he doesn’t like going to Chipotle because of its crowded and unwelcoming atmosphere.
“I think [California Tortilla is] better because the burritos are a more realistic size and the atmosphere is less crowded. Chipotle feels like I’m walking into a monopoly.”
But Heather Kay Aldrich, a freshman music major, said she tried out the other places but still liked Chipotle better.
“It’s very inexpensive, and you don’t really have to order a lot; you can just order one and you’re good,” she said.
Arnold said he was not worried about the influx of Mexican restaurants in the city and said he believes Chipotle can fend off the competition.
“I think things will continue to be strong there. We have very loyal customers,” he said
