- Chipotle, the fast casual restaurant with the simple menu, celebrates 20 successful years.
- One of the biggest restaurant failures EVER was invested and nurtured by Steve Ells, founder of Chipotle.
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America’s Next Great Restaurant ran on NBC in the Spring of 2011. The series featured four “investors:” Chef Bobby Flay, Chef Curtis Stone, Chef Lorena Garcia and Chipotle Mexican Grill founder Steve Ells. The winner would receive their own small business – inspired by their passion – to manage. Most candidates were home cooks with their own personal or financial struggles who were competing for a life-changing opportunity.
After each round of competition challenges, the candidates were given feedback and advice by the four investors. Feedback ranged from menu and food quality to the restaurant name, branding and dining experience. In the season finale, Jamawn Woods of Detroit, MI was announced the winner and given the keys to three “Soul Daddy” restaurants. His restaurants, in New York City, Los Angeles and the Mall of America in Bloomington, MN, opened the following day. They closed within two months.
Steve Ells recently reflected on Chipotle’s “accidental success” and 20 years of his chain. Ells and the leaders of Chipotle have evolved the business over time, in reaction to market changes and consumer trends:
- Embraced sustainable food
- Committed to “Food With Integrity”
- Struggled with serving high calorie food
- Hired workers with questionable documentation.
This month, Chipotle celebrates 20 years as a business; it generates nearly $3 billion in revenue each year. Its initial stock price was $22 a share; it closed last Friday at $408.
I am fascinated by the contrast of the story of these two establishments and their connection. Chipotle was hatched from Ells’ idea, the business grew at it’s own pace and was successfully nurtured by Ells over time. Soul Daddy, hatched from Woods’ idea of a chicken and waffle restaurant, grew and transformed in front of the television lens – it was doomed from the start. The investors, the show’s producers, the demands of the show’s strategy, etc. drove the business plan, product and marketing – and changed it each week. The *intent* was to improve Woods’ idea, but the result was a failure. The restaurant was launched in a national spotlight and given to someone who – through no fault of his own – was not ready. This LA Weekly blog post is a good post mortem of Soul Daddy.
How the four investors and producers believed this reality show model could have worked in the first place befuddles me. How could Ells and his success with Chipotle, along with the expertise of the three other restauranteurs, not transfer a successful formula to Soul Daddy? Some critics blame Ells and his Chipotle empire for the failure of Soul Daddy, but it’s not that simple.
The process lacked thoughtful planning, real world perspective, competitive analysis, a strong brand and all else that a prosperous restaurant business requires – including TIME. The series spanned only nine episodes. Sadly, Jamawn Woods has not yet re-opened a Soul Daddy restaurant with his own vision and plan.