Chipotle is Expanding Into Rural Communities. It’ll Need to Reevaluate its Fresh Food Supply Chain.

 

Supply chain issues are far from over but Chipotle is expanding into a new market that could heavily impact their fresh food supply. The company recently announced its new expansion strategy to open in smaller towns, but some issues can arise beyond its control. The quest for unique and specific offerings in establishments like Chipotle dictates a deviation from traditional, which also adds a distinctive layer of complexity to supply chain management. Subsequently, efforts to mitigate potential disruptions have spawned certain strategies that could be helpful. 

Additionally, there’s a socio-economic perspective that must also be considered in Chipotle’s latest expansion strategy. Supply and demand extends beyond a mere consideration of geography and infrastructure and the community’s economic strength and regional demographics play an integral role in setting price points relative to the offered meals. 

The intriguing intersection of supply chain management and the fast-casual restaurant industry is Steven Carnovale’s area of expertise. As an Associate Professor of Supply Chain Management at the College of Business at Florida Atlantic University, he explained how Chipotle’s newest expansion approach could fare in the short- and long-term. He said that the fresh food supply Chipotle prides itself on could be difficult to obtain in the smaller locales the company is shifting its gears to. Carnovale further raised concern on the sustainability of the customer-base.

Carnovale’s Thoughts on Chipotle’s Fresh Food Supply

“Largely speaking, it’s a pretty sound idea, and it’s definitely the next frontier in terms of expansion from a retail standpoint. One of the issues, of course, to factor in is that fast, casual chains like this typically rely on fresh ingredients rather than pre-made, pre-packaged, and as a result, lengthening out supply chains can cause delays. 

“So, other practices that have been established in this way is locating regional distribution centers that can supply on a more rapid basis to avoid those disruptions. That’s one strategy. The other strategy, of course, is to locate these facilities proximal to major highways to minimize the likelihood of delays in transportation causing disruptions to final mile delivery. Other than that, the issues to focus on would be, of course, the regional demographics and whether or not the economic support of the community can justify pricing as it relates to the offerings.”

Follow us on social media for the latest updates in B2B!

Image

Latest

hvac workforce culture
HVAC Workforce Culture: Recruit with Purpose, Retain with Care
March 31, 2025

The HVAC workforce is shrinking as retirements continue to outpace new entries into the field. More than 50% of HVAC professionals are over 45, and the industry is replacing every five retirees with only two new workers.  The result is an urgent need not only to recruit new talent but also to retain it through…

Read More
workplace safety culture
Aligned Data Centers Leads with a Strong Workplace Safety Culture
March 31, 2025

The world of data infrastructure has seen a number of rapid changes. As a result, where uptime and efficiency dominate conversations, the importance of a strong workplace safety culture can often be overlooked. But as everyone’s digital lives increasingly depend on these behind-the-scenes giants, the safety of the people maintaining them becomes more than…

Read More
Fiber Deployment
Connected America 2025: Smarter Planning and Partnerships Key to Maximizing Fiber’s Federal Funding and Impact
March 31, 2025

As the digital divide accelerates and fiber deployment sees growth, Connected America 2025 has emerged as a pivotal moment for infrastructure professionals. With over $42.5 billion earmarked through federal programs like the Broadband Equity, Access, and Deployment (BEAD) initiative, the U.S. is undergoing one of the most aggressive broadband expansion efforts in its history….

Read More
Workplace safety
Building a Skilled Trades Workforce: Certifications, Simulation-Based Training & Reskilling with SkillCat
March 31, 2025

Industries across the United States are facing an unprecedented shortage of a skilled trades workforce. With millions of baby boomers retiring and fewer young people entering the trades, sectors like HVAC, manufacturing, and construction are grappling with a critical need for talent. This labor shortage is further compounded by a lack of awareness and…

Read More