A Chain That Pigs Would Die For

Russ Kremer still chuckles when he remembers the day Steve Ells, CEO of the fast-food chain Chipotle Mexican Grill, called to ask if he could land his corporate jet at the Frankenstein, Mo., "airport." Kremer's hometown, a picturesque farming village in the foothills of the Ozark Mountains, has a population of 30, and more rolling hills, creeks and pastures than paved roads. "You couldn't find a level spot bigger than a dining-room table," he says.

Less than one week later, Ells and a small entourage of Chipotle executives touched down in nearby Jefferson City and drove to Kremer's 150-acre farm. They had come to ask about buying naturally raised pork from Kremer and a group of local farmers who had banded together to form a cooperative. Under the Heritage Acres label, the farmers dedicated themselves to raising hogs humanely, layering the floors of their pens with hay, giving them access to fresh air and eschewing such practices as clipping their tails and plying them with antibiotics. The co-op's approach jibed with what Ells was trying to do at Chipotle: in 2000 the classically trained chef and company founder committed to serving humanely raised, sustainably grown food at his restaurants, including meat and dairy products that are free of antibiotics and hormones. A few days later, Chipotle handed Heritage Acres its first major contract, for 5,000 pounds of pork per week, which it has since raised to 10,000 pounds —about 7 percent of Chipotle's total take. "They ensured our survivability," says Kremer, who's since been able to add 15 new farms to his co-op.

A fast-food company is an odd candidate for the title of environmental champion. In 2001, Eric Schlosser's "Fast Food Nation" made chains like McDonald's—which owned Chipotle until a 2006 divestiture—virtually synonymous with animal cruelty and abusive labor practices. Last year Michael Pollan's "The Omnivore's Dilemma" heaped praise on family farms that help preserve the environment while producing a diverse yield of delicious, wholesome products. Consumers have gotten the message by crowding farmers markets and packing supermarket carts with organic food. Ells grew interested in serving more-ecoconscious ingredients after reading about and then visiting Niman Ranch, one of the oldest American producers of humanely raised meat. Since launching what it calls Food With Integrity—part internal mission, part PR campaign—in 2000, Chipotle has been serving sour cream and cheese free of the hormone rBGH, organic beans, and naturally raised pork, chicken and meat. Last month it announced it would buy locally grown produce whenever possible. Up next: dairy products from pasture-raised cows.

Chipotle uses few USDA-certified organic products and instead follows its own, sometimes less stringent, protocol. Pigs destined for a Chipotle Carnitas burrito receive no antibiotics, eat a vegetarian diet and must have access to either open pasture or deeply bedded pens. Unlike organically raised animals, their feed does not have to be organic and pesticide-free. Both protocols allow pigs to spend their lives indoors in crowded conditions, though farmers like Kremer shun that practice.

Chipotle's ecofriendly makeover is about more than just its social conscience. It's been great for business, too. Since Ells, who once worked in the kitchen of California-cuisine guru Jeremiah Tower at San Francisco's Stars restaurant, launched Food With Integrity, Chipotle's revenues have grown tenfold to reach $1.1 billion. Its stock price has more than doubled since January 2006, when the company went public, to $100 a share. It now operates more then 700 restaurants around the country and expects to open an additional 130 to 140 before the year-end.

Chipotle's chief financial officer, Jack Hartung, plays down the effect of sustainable food on the company's sales. The real attraction, he says, lies in the fact that Chipotle serves freshly prepared food—employees grill chicken, mash avocados into guacamole and heat tortillas before customers' eyes in an open kitchen. "I can't tell you we're getting any specific sales increase from Food With Integrity," he says. "Many of our customers aren't even aware of it." While the company makes a point of saying it doesn't advertise, it does actively promote its sustainability program to investors and to the press.