Early last week, Chipotle released their 2022 4th Quarter report. As I’m writing this Chipotle’s stock is sitting around $1,635.20. For those who aren’t actively participating in the stock are probably thinking why is this stock so high for a company that makes burritos and bowls? While there are plenty of factors that go into the value of a stock, I wanted to zoom in on the core of this successful business…the people.
Brian Niccol, the CEO of Chipotle, recently declared that December 2022 was one of the best months for employee turnover rates in the previous two years on the company's Q4 2022 earnings call. Additionally, Niccol noted that last year's staffing levels considerably improved, with 90% of Chipotle's stores having a full crew. The company's "Project Square One," which was adopted to guarantee that ingredients are in stock, that teams are adequately staffed, and that food is prepped and served on time, is largely responsible for these advances.
The company is also focusing on improving frontline throughput and accuracy and timing at its digital make-line. Chipotle is moving towards more in-person training instead of relying on virtual training, bringing new employees into the restaurants sooner for more in-person training. Niccol explained that “Shoulder-to-shoulder training by experienced managers is an essential process.”
Furthermore, Chipotle promoted nearly 22,000 workers in the past year, and 90% of management positions in restaurants were internal promotions. This year, the firm intends to open 255 to 285 new restaurants, which may necessitate the promotion of more than 1,700 hourly management jobs, more than 255 general managers, and more than 40 field leadership positions.
All of Chipotle's initiatives have improved traffic and reduced menu deactivations, which happened online when goods ran out of stock. The business anticipates increasing throughput in Q2 as it hires more staff and enters the peak burrito season.
As leaders, it is important to invest in the training and development of employees to improve staff retention and overall performance. It is necessary to provide proper in-person training and offer career advancement opportunities to ensure employee satisfaction and growth.
What training and development initiatives do you have in place to improve employee retention and performance in your organization? How can you ensure that your employees are properly trained to provide excellent service to your customers?