an affordable price in a bilingual environment. As a franchisor, Swad avoids three practices prone to generating ill will and mistrust among licensees: operating stores in the same markets as franchisees, redirecting advertising funds into unrelated areas and developing alternative revenue streams (such as rebates) from preferred suppliers.
Ultimately, Swad believes the success of a concept depends on seven ingredients:
1. A great product
2. An idea with broad appeal
3. Good unit economics
4. A strong brand identity that
“carries through everything”
5. a consistent look and feel
6. Intimate knowledge of the market and customer
7. Strong, committed leaders
Ahighlight of this conference every year is the announcement of the Richard Melman Concepts of Tomorrow
Award. The award, now in its fifth year, is given to an upand- coming concept RH editors believe has the legs to become a major force in the future. The editors have been identifying these concepts for the last 10 or so years, and it seemed only fitting that an award to honor growth concepts be named after the father of concept creation, Rich Melman.
Melman, who has created dozens of unique and cutting-edge concepts over the years, is the founder of the country’s greatest multi-concept empire, Lettuce Entertain You Enterprises.
Editor Mike Sanson, commenting on last year’s winner–Ted’s Montana
Grill–said finding the next winner was no easy chore. After all, he pointed out, how many restaurant companies have media mogul Ted
Turner’s deep pockets and relentless spirit?
As it turned out, Chipotle Mexican Grill was more than up to the challenge. Back in 1993, CIA-trained chef Steve Ells borrowed some bucks from his dad and opened a humble 20-seat burrito joint in Denver. It was a hit and Ells opened a second unit, which followed suit.
Ells eventually sent his business plan to McDonald’s, which agreed to partner with him. The rest, as they say, is history. There are now more than
375 Chipotle Mexican Grills in 20 states, and it’s poised to grow for years. Sanson pointed out that it wasn’t just the numbers that led the RH editors to select Ells and Chipotle for the Melman
Award. Ells got the nod, he explained, because of the socially conscious manner in which he has run the business.
Ells’ motto for his chain is Food With Integrity, and every aspect of the chain is operated with a high level of integrity. On top of that, Ells is helping change the face of family farming in America. Each time a new Chipotle unit is added, a new family farm is brought on board to supply the high-quality livestock Ells demands.
“Chipotle is not Steve’s business,” said Sanson, “it’s his passion.”
DECEMBER