Advice Line with Steve Ells of Chipotle
Steve Ells, founder of Chipotle, joins the advice line to help three entrepreneurs: an Australian distillery owner seeking differentiation in a crowded market, a London-based founder of heating mats serving multiple markets, and a wine producer reviving his family's century-old Italian vineyard while facing declining alcohol consumption trends.
Summary
In this episode of the Advice Line, Steve Ells shares updates on his post-Chipotle ventures, including the pivot from his robot-powered Kernel restaurant to Counter Service, a sandwich shop emphasizing artisanal quality. Ells explains that while Kernel worked, it wasn't the 'rocket ship' he wanted, leading him to focus on human interaction and high-quality ingredients at Counter Service. The episode features three caller consultations: Rebecca from Streaky Bay Distillers in remote South Australia, who makes craft spirits using local botanicals and struggles with differentiation among 650+ Australian craft distilleries; Sri from MatZero in London, whose USB-powered heating mats serve humanitarian, outdoor, and consumer markets but needs focus without losing mission alignment; and John from Cantina di Rosina, who restored his family's century-old Italian vineyard in Abruzzo but faces the challenge of marketing wine to younger generations amid declining alcohol consumption. Ells consistently advises focusing on core differentiators, building authentic customer relationships, and leveraging unique stories, while Guy Raz suggests innovative marketing approaches including celebrity partnerships and content-rich newsletters.
About this episode
<p>Today’s callers: Rebecca from Australia wants to make her small-batch spirits stand out in a crowded market. Then, Sri from England wonders how to balance commercial and humanitarian interests for her heated mats. And John from Pennsylvania hopes to reach younger customers with his Italian wines despite declining alcohol consumption. </p><p><br /></p><p>Plus, Steve talks about the evolving role of robots in food service—and how he hopes to find his next rocketship in a fresh take on the sandwich shop.</p><p><br /></p><p>Thank you to the founders of Streaky Bay Distillers, Mat Zero, and Cantina Di Rosina for being a part of our show.</p><p><br /></p><p>If you’d like to be featured on a future Advice Line episode—where Guy and former show guests take questions from early-stage founders—leave us a one-minute message that tells us about your business and a specific question you’d like answered. Send a voice memo to <a href="mailto:[email protected]" rel="noopener noreferrer" target="_blank">[email protected]</a> or call 1-800-433-1298. </p><p><br /></p><p>And be sure to listen to <a href="https://wondery.com/shows/how-i-built-this/episode/10386-chipotle-steve-ells/" rel="noopener noreferrer" target="_blank">Chipotle’s founding story</a> as told by Steve on the show in 2017. </p><p><br /></p><p>This episode was produced by Chris Maccini with music by Ramtin Arablouei. It was edited by John Isabella. Our audio engineer was Robert Rodriguez.</p><p><br /></p><p>You can follow HIBT on <a href="https://x.com/HowIBuiltThis" rel="noopener noreferrer" target="_blank">X</a> & <a href="https://www.instagram.com/howibuiltthis/" rel="noopener noreferrer" target="_blank">Instagram</a> and sign up for Guy's free newsletter at <a href="http://guyraz.com/" rel="noopener noreferrer" target="_blank">guyraz.com</a> and on <a href="https://guyraz.substack.com/" rel="noopener noreferrer" target="_blank">Substack</a>.</p><p><br /></p><p><br /></p><p>See Privacy Policy at <a href="https://art19.com/privacy" rel="noopener noreferrer" target="_blank">https://art19.com/privacy</a> and California Privacy Notice at <a href="https://art19.com/privacy#do-not-sell-my-info" rel="noopener noreferrer" target="_blank">https://art19.com/privacy#do-not-sell-my-info</a>.</p>
Key Insights
- Ells argues that Kernel's closure wasn't due to failure but because it wasn't growing fast enough, leading him to pivot to Counter Service which emphasizes human interaction over automation
- Ells claims that robot automation in restaurants is polarizing, with some customers wanting human-made food, making human interaction very important in food service
- Ells contends that focusing on what you're best in the world at creates more brand impact than offering diverse product lines without clear differentiation
- Ells argues that building individual customer relationships one-by-one was key to Chipotle's growth from zero to over a million daily customers
- Ells suggests that outdoor enthusiasts represent a premium market willing to pay high prices for quality gear, making them ideal customers for specialized products
- Ells maintains that products with authentic stories and sense of place are very powerful, especially when combined with anti-corporate positioning
- Ells believes traditional marketing should be avoided in favor of authentic partnerships and personal relationships to build brand credibility
- Ells reflects that his extreme focus on business success may have limited growth potential, arguing that a more balanced life approach might have yielded even better results
Topics
Transcript
Hello, and welcome to the advice line on how I built this lab. I'm Guy Raz. This is the place where we help try to solve your business challenges. Each week, I'm joined by a legendary founder, a former guest on the show, who will help me try to help you. And if you're building something and you need advice, give us a call and you just might be the next guest on the show. Our number is 1-800-433-1298. Leave us a one-minute message that tells us about your business and the issues or questions that you'd like help with. All right, let's get to it. Joining me today is Steve Ells, founder of Chipotle. Steve, welcome back to the…
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