Chipotle will no longer use genetically modified food in its stores, the company announced on Monday. The fast-growing Mexican restaurant chain will be the first US company to use only non-GM ingredients.
“There is a lot of debate about genetically modified foods,” Steve Ells, the founder, chairman and co-CEO of Chipotle, said. “Though many countries have already restricted or banned the use of GMO crops, it’s clear that a lot of research is still needed before we can truly understand all of the implications of widespread GMO cultivation and consumption. While that debate continues, we decided to move to non-GMO ingredients.”
Eliminating GMO ingredients is no easy feat, and the company has previously struggled to keep up with other pledges it has made, including the use of ethically raised pork.
More than 90% of corn and soy grown in the US comes from GMO strains. GMOs are present in 75% to 80% of conventional processed food in the US, according to the Grocery Manufacturers Association. In order to use only non-GMO ingredients in its stores, Chipotle has been working with its suppliers to increase their production of non-GMO corn flour and sunflowers.
“We’re working with our farmers to plan enough of these crops we need to meet our supply,” Ells told the New York Times.
Chipotle has voluntarily disclosed GMO ingredients in its food since 2013, and had at that time pledged that it would eliminate GMO ingredients from its food. According to Ells, the transition was more straightforward because many stores already used non-GMO food. The company also has a smaller list of ingredients than its competitors. Excluding tortillas, the entire chipotle menu is just 46 ingredients, according to Chipotle.
The next step in providing its customers with “the very best ingredients” is re-inventing its tortillas.
“Tortillas are the only food item on Chipotle’s menu that contains any additives, which include a minimal number of preservatives and dough conditioners,” the company said in a statement on Monday. It added that it is “now embarking on a quest to eliminate all of the remaining additives”.
Last week, same-store sales at Chipotle rose 10.4% for the first quarter, missing projected 11.8% growth, according to figures released on Tuesday.
“I’m pleased with our performance for the first quarter,” Ells said at that time. “And we’re off to a strong start in 2015.”
Chipotle, which operates about 1,800 restaurants, plans to open between 190 and 205 more stores in 2015. The main reason for the lower-than-expected sales in the first quarter was its pork shortage.
“Carnitas customers really love our pork, and aren’t visiting unless they know we have carnitas in their market,” John Hartung, Chipotle’s chief financial officer, said on Tuesday. “They order that favorite meal every single time they visit. Many decided to hold out until carnitas returns to their market.”
In 2011, Chipotle launched its first sustainable farming campaign. Earlier this year, an audit revealed that one of the suppliers was not complying with the chain’s progressive animal welfare standards and as a result, the company stopped selling carnitas at one third of its locations.
The company said it might increase prices in the coming months.
“Chipotle’s move to non-GMO ingredients did not result in significantly higher ingredient costs for the company, and it did not raise prices resulting from its move to non-GMO ingredients,” the company said in a statement. The main reason for the potentially higher prices is the beef, Ells told the New York Times.
“With pork, it’s harder, because we only need one part of the animal – the shoulder – and the farmer needs to sell the whole animal to make it work,” he said.
