Innovative new business solutions often come from outside an industry. This article suggests such an opportunity exists for housing, based on of all things, the profoundly successful Chipotle business model for fast food. By all metrics, Chipotle is an industry leader including sales-per-store and overall revenue growth while having a paltry advertising budget compared to other fast-food businesses. One of the keys to their success is their product design. Yes, fast-food also employs design. The Chipotle secret formula is based on:
- Simple Menu that doesn’t overwhelm the consumer, plus
- Limited Core Ingredients that are high-quality and healthy, plus
- Choice Toppings to meet each buyer’s tastes.
A more edgy architectural design theme superior to typical fast-food restaurants further enhances the consumer experience. This simple formula leads to:
- extensive customization opportunities;
- optimum use of assets;
- minimum waste;
- high margins with a fair price; and
- outstanding customer satisfaction.