Recently, a collegue and I went to lunch at Pancheros, a 14-year old burrito chain started in Iowa City, IA. I’ve spoken about the power of lunch before as well as the lunch experience. Always enlightening. This time was no exception.
I’m a big fan of Chipotle, they’ve taken the Subway model and transferred it to Burritos. In the process, created the fastest growing resturant segment and an engaging write-up in Trading Up: The New American Luxury.
Rather, I thought it was Subway, until I stepped into Pancheros.
The process at both Pancheros and Chipotle are identical; start with the burrito, then rice, beans, meat selection, salsa, sour cream, guacamole, and greens.
The difference is at the start; Chipotle has pre-pressed burritos that are steamed for each order, Panchero’s creates each burrito fresh from a ball of dough for each order.
According to Pancheros website, freshly-pressed burritos were introduced in 1998 – as Pancheros’ differentiator I suspect, for that was about the time I discovered Chipotle.
Bad idea.
This was the Panchero’s order-taker’s process I observed:
- Take burrito order.
- Turn around, press ball of dough into burrito.
- Throw freshly-pressed burrito on grill.
- Turn around, take next order.
- Repeat step 2.
- Flip over first burrito.
- Grab first burrito and re-ask first customer what they ordered.
Compare this against Chipotle’s order process:
- Take burrito order.
- Grab pre-pressed burrito and steam.
As I discussed in my 5 Organizational Tips from Academia entry, the infrastructure is often the bottleneck to greater capacity. Panchero’s capacity is being limited by their fresh-pressing.
If you have both in your neighborhood, pick a nice day and stop by both. I predict the Chipotle will have a line out the door and the Panchero’s might have 10 people in queue.
What should Panchero’s do? I recommend taking a cue from Baja Sol Tortilla Grill and differentiate on offering and freshness.