Chipotle Doubles Down on Organic

It’s an interesting move to see a restaurant chain delving into politics like this, but the decision makes sense for Chipotle. It’s just a natural extension of its mission. GMO labeling laws are pending in several states currently, and, while only Connecticut and Maine have passed such laws, the movement seems to be gaining favor. Already, 64 countries, including nearly all of the developed world, have passed GMO-labeling laws, so it seems like only a matter of time until this issue reaches a tipping point in the United States.

Sustainable food and a sustainable competitive advantage
Chipotle’s stance not only seems to put it on the right side of the ethical and environmental debates surrounding food, but it also makes its numerous competitors — including Yum! Brands‘ Taco Bell, Jack in the Box‘s Qdoba, and Ruby Tuesday‘s Lime Fresh Mexican Grill — look like pretenders. Vulnerability to imitations such as Taco Bell’s Cantina Bowl lineup has long been a refrain of Chipotle bears, but this campaign reinforces why its business has been so successful in the first place. The “Food With Integrity” promise is not only a major brand differentiator, putting an ideological ocean between it and more traditional fast-food chains, but the sourcing, be it local or naturally raised, is a big part of what makes the burrito chain’s food taste so good, and that is a competitive advantage not easily duplicated.

The company is smart enough off keep business ahead of politics, but the momentum gaining for GMO labeling laws will only solidify its brand strength in the long run. Like Whole Foods Market, Chipotle seems to be pushing in the direction of becoming a “movement brand.” Its customers may be lining up to feed their bellies, but supporting sustainable agriculture on the side certainly won’t upset anyone’s stomach.

The article Chipotle Doubles Down on Organic originally appeared on Fool.com and is written by Jeremy Bowman.

Fool contributor Jeremy Bowman owns shares of Chipotle Mexican Grill. The Motley Fool recommends and owns shares of Chipotle Mexican Grill and Whole Foods Market.

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