Great analysis! One thing I wonder about with B corp / benefit corp models such as these is how companies like Patagonia manage to balance the obligation to shareholders and/or investors for delivering good as a value vs. good as monetary profits. Are they protected in any way from being sued by shareholders who don’t think the company is making the *maximum* amount of profit it can? Is there a “right” balance between creating/sustaining financial value and creating social value?
Great analysis! Chipotle’s success strategy based on local ingredients and a “healthy, local” brand has definitely been a competitive advantage up until now, but it also leaves it vulnerable to the health and food compliance issues that it’s experiencing currently. Any thoughts on how Chipotle can protect itself, or will shift its model going forward in response?
I think you are spot on about the labor strategy (giving employees benefits, paying them well) and establishing a culture that drives home superior customer service! It is the main reason why I am willing to wait in line for 15-20 minutes for a basket of goods, whereas I would not feel the same way about Aldi or another discount supermarket. Does this impact their margins considerably, or do you think this customer service drives a higher volume of customers that then makes up for the larger salary expense?