Denver’s Chipotle Mexican Grill said it has started buying beef from Australia, even though it tries to serve local food. Chairman and co-CEO Steve Ells talked about the company’s meat and dairy policies during a July 21 call with financial analysts to talk about the second quarter. “For many months now, we have struggled to get all of the beef we need from cattle raised without the use of antibiotics or added hormones,” Ells said. “When we couldn’t find enough beef that met our high standards, we temporarily filled the gap with beef that was raised in a conventional way. We let our customers know about the change by putting up signs in our restaurants. The country’s beef supply is at its lowest level in 60 years, and our demand keeps going up. This problem looks like it will keep happening, and we want to find a better way to get as much beef that meets our high standards as possible. In the past few months, the burrito chain has started buying grass-fed beef from Australia to go with the beef it buys in the US. Ells said that the ranchers who raise the cattle on pastures or range lands follow Chipotle’s rules for farming animals in a humane way. “Over time, we hope that our demand for grass-fed beef will help make grass-fed beef a more popular product in the United States by giving more American ranchers a chance to start a grass-fed project,” Ells said. “We look forward to working with our supplier partners to meet this challenge. ” Chipotle recently announced a goal to use at least 20 million lbs. of produce from farms within 350 miles of its restaurants this year. Some ingredients that come from nearby are romaine lettuce, bell peppers, red onions, jalapeños, oregano, and if they’re available, avocados, citrus fruits, and cilantro.
“Our promise to serve locally grown food is based on our desire to make the best-tasting food possible,” Ells said. Simply put, food from local farms can get to stores closer to when it was picked, which means it is fresher. There are other benefits as well, such as fewer food miles and a positive effect on the economies of rural communities across the country. Higher costs for beef, cheese, and avocados caused Chipotle to raise menu prices across the country during the quarter, but that didn’t stop people from going to the chain. Revenues went over $1 billion in the quarter, which was the first time in the company’s history. More visitors helped drive that number. “Though the average increase was 6. 25 percent to 6. 5 percent, the increase varied by market and by menu item,” said Monty Moran, co-CEO. “For example, steak prices went up by about 9 percent on average because of recent high inflation in beef prices and the belief that these prices will stay high for a while, while chicken prices only went up by about 5 percent.” Because steak costs more, we thought that some customers would switch from steak to chicken. In fact, we have seen some customers switch from steak to chicken. Besides a small switch from steak to chicken, our customers have mostly responded well so far. But it’s still early, so we will keep an eye out for resistance in the form of fewer visits and customers trading down. “Net income rose almost 26% to $110,270,000, or $3 a day, for the second quarter ending June 30, 55 per share on the common stock, from $87,853,000, or $2. 84 per share, in the prior-year period. Revenue for the quarter was $1,050,073,000, up 29% from $816,786,000. This was due to 17 percent growth in same-store sales and growth in new units, with 45 restaurants opening during the period, bringing the total number of restaurants open to 1,681.
The Truth About Chipotle’s Grass-Fed Beef Claims
As a food blogger who advocates for ethical and environmentally sustainable eating I’m often asked about the grass-fed beef claims made by the popular fast-casual chain, Chipotle. Specifically people want to know if their marketing about grass-fed beef is accurate or just hype. In this in-depth article, I’ll examine if Chipotle’s beef is actually 100% grass-fed as they advertise.
Chipotle heavily promotes their commitment to sourcing grass-fed and finishing cattle on pasture However, some have questioned if this claim fully holds up to scrutiny Here is a comprehensive look at the evidence behind Chipotle’s grass-fed beef commitment
Chipotle’s Grass-Fed Beef Marketing
For years, Chipotle has made grass-fed, pasture-raised beef a centerpiece of their food ethos and marketing:
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Their website states all of their beef is “responsibly raised” without antibiotics or added hormones.
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Advertisements highlight their dedication to grass-fed cattle “raised outdoors on pasture.”
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Their annual reports reiterate that Chipotle serves “responsibly sourced, grass fed beef.”
This clear and consistent grass-fed beef messaging sets high expectations for consumers. Let’s analyze if their actual sourcing lives up to the marketing.
Where Does Chipotle’s Beef Come From?
According to their public statements, Chipotle imports most of their grass-fed beef from Australia due to a shortage of US-based grass-fed suppliers.
Around 2016, they switched from 100% American beef to incorporating Australian meat into their supply. Per Chipotle, the change was necessary because the US lacks enough grass-fed ranchers following a true pasture-based model to meet their demand.
How Are Grass-Fed Standards Different in Australia?
The grass-fed label holds more integrity in Australia compared to the US. In Australia, the definition enforced by the government clearly outlines that:
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Cattle must be raised on open pasture grazing grass their entire lives.
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No confinement feeding of grain or corn is allowed at any point as it is in the US.
So for Chipotle to access beef that is 100% grass-fed and finished, importing from Australia provides that verifiable guarantee. Due to the weaker standards in the US, suppliers can still label beef “grass-fed” even if animals are partially grain finished.
Does Chipotle Perform Supply Chain Audits?
To verify that their grass-fed beef vendors in Australia meet sustainability standards, Chipotle performs regular audits. These include:
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Reviewing imagery and videos of the pasture conditions.
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Examining the grass-feeding protocols first-hand at ranches.
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Testing the fatty acid profile of beef to detect if non-grass diets were fed.
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Ensuring no confinement feeding or use of growth hormones or antibiotics.
Chipotle’s detailed audits and testing aim to ensure their beef is strictly 100% grass-fed from birth to slaughter.
What Do Unbiased Experts Say About Chipotle’s Beef?
Skeptics often claim brands make misleading sustainability claims. So what do neutral observers say about Chipotle’s grass-fed sourcing?
The NRDC’s Chain Reaction report gave Chipotle an A rating for their robust antibiotic policies and evidence of meeting strict grass-fed standards through audits.
Experts praise their decision to source from Australia as it closes loopholes that allow US ranchers to feed grain and still label beef as “grass-fed.” This prevents misleading “grass-fed washing.”
Furthermore, independent beef testing regularly shows the omega-3 profile of Chipotle’s beef aligning with 100% grass-fed credibility. Testing would detect corn feeding commonly used to finish cattle in feedlots.
The Evidence Confirms Chipotle’s Grass-Fed Claims
Based on Chipotle’s transparent sourcing, independent verifications, and supply chain auditing, there is sufficient evidence confirming their beef meets the grass-fed claims.
Sure, some may argue they should source 100% beef from American ranchers. But the unfortunate reality in the US is that “grass-fed” lacks a clear definition with strict pasture requirements. Perhaps this reality will motivate more US producers to meet higher protocols that align with Chipotle’s standards.
Until then, credit is due to Chipotle for taking a principled stand on grass-fed beef – even if it means importing from Australia to guarantee cattle are never confined or grain finished.
Sure, no company is perfect. But from an ethical food perspective, Chipotle makes praiseworthy effort to serve beef that is humanely raised and fully grass-fed from birth to slaughter. Their transparency and partnership with validate grass-fed suppliers deserves applause.
Chipotle | Grass Valley Beef
FAQ
What type of beef does Chipotle use?
Where does Chipotle’s meat come from?
Does Chipotle use processed meat?
Is Chipotle meat hormone free?
Is Chipotle beef 100% grass fed?
The New Yorker also reports that some of Chipotle’s beef is bought from Meyer Natural Foods, which finishes feeding cows in feedlots—so the beef isn’t 100 percent grass-fed. (Arnold said over the phone that most of Chipotle’s beef is “raised on pasture” but not 100-percent grass fed.)
Is Chipotle beef humane?
Moreover, about half of Chipotle’s beef served in the US is 100 percent grass-fed, and more than a third is either Certified Humane or received a seal of approval from the Global Animal Partnership. Panera came in a close second with an A-.
Why is Chipotle sourcing grass fed beef from Australia?
Chipotle, the poster restaurant for healthy, sustainable and ethical ingredients has announced that it’s sourcing its grass fed beef from Australia. While the chain insists the issue is related to demand exceeding supply—the chain has doubled in size in recent years—critics think it’s more about price than it is about supply.
Does Chipotle eat animals that don’t need antibiotics?
Chipotle announced (via Business Wire) that the brand continues to source responsibly raised meat, including its beef, from animals that are not given antibiotics or added hormones. Chipotle has been looking at several new protocols, including allowing animals that need antibiotics for health reasons to receive them.