Wednesday, July 2, 2014

Promoting from Within

The typical fast food restaurant will have personnel problems. For much of the hourly staff, this is their first job for minimum wage when they become teenagers. They work part-time and for relatively short time spans. Restaurants are almost always hiring. High turnover and low motivation do not usually make for interesting jobs or career succession paths.

Chipotle revamped hiring practices in 2005 in an attempt to address these issues. They did a lot of things but chief among them was promoting from within. If you see other crew members being selected to become supervisors, managers, leaders and directors, you might try to make yourself noticed.
In 2005, the US company underwent a transformation that would make its culture as distinct as its food. As more than 1,000 stores opened across the US, the company focused on creating a system where promoting managers from within would create a feedback loop of better, more motivated employees. That year, about 20% of the company’s managers had been promoted from within. Last year, nearly 86% of salaried managers and 96% of hourly managers were the result of internal promotions.

It seems to have worked:
Since its IPO in 2006, Chipotle’s growth has been exceptional. Sales have increased from $826 million that year to $3.2 billion last year. And the company had 9.3% growth in comparable store sales last quarter, which is remarkable for a 21-year-old company that hasn’t raised prices recently.

Hat tip: EconJeff

1 comment:

  1. Promoting from Within

    Three Cheers to Chipotle Grill!
    Getting employees to work in the best interest of a company requires employers’ to do and give more. True leaders can motive and should have the ability and skill to persuade.

    “It’s getting hard to keep talented employees because of the many opportunities available to them, “ Talent has many options” (

    Competitive salaries and a good benefit package is always at the top of the list when an employee is considering their options. However there are many other key factors that are just as influential:
    • The ability for recognition and offer a chance for advancement.
    • Happiness
    • Aligned goals and common interest
    • Respect
    • Trust Worthy leadership
    • Interest in employees, communication

    Chipotle is changing the fast food industry. Most all members of management were once crewmembers. This confirms to current and future employees that there is plenty of opportunities within the company. Starting out at Chipotle requires no former experience within the industry. The company, unlike other fast food restaurants, Chipotle actually cooks its food, therefore on the job training is provided. And, competitive salaries and benefits are offered as well.

    Chipotle is unique in that it promotes responsible farming. The environment, the planet, the clients and the workers are all of great concern to the company. The products they use and the companies they have partnered with, stands by their beliefs and values. Their products have no pesticides and synthetic fertilizers. Vegetables are from local farms that allow their animals to graze the land freely, no injections in any of their products.
    This company believes in its staff, and its clients.