Steve Ells on focus, place-based brands, and reaching new markets

Executive overview

Steve Ells, founder of Chipotle, joins Guy Raz to advise three early-stage founders on differentiation, market focus, and building authentic brands. Each caller faces a version of the same problem: a compelling product in a crowded or declining market, with more opportunities than resources to pursue them.

Ells draws on Chipotle's origin — a premium product launched into a low-expectation category — to argue that clarity of focus and direct customer relationships are the levers that create lasting brands.

The strongest brands do one thing better than anyone else, and let that single excellence do the selling.

From Kernel to counter service

• Ells closed his robotic restaurant concept Kernel after less than a year — not because it failed, but because it wasn't a "rocket ship."
• Pivoted to Counter Service: a high-quality sandwich restaurant using the same food-first principles as Chipotle.
• Robot arms at Kernel handled oven loading/unloading only; real cooking still happened in a central kitchen with knives and pots.
• Key lesson: human interaction matters — customers want people welcoming them, not just automation.
• Automation at Counter Service reduces labour costs, enabling investment in better ingredients.

Caller 1 — Streaky Bay Distillers (Rebecca Smith, South Australia)

Rebecca and her partner run a small-batch gin, vodka, and whiskey distillery in a remote coastal town. Revenue doubled to ~$400k this year. Question: how to differentiate in a market of 650+ Australian craft distilleries.

• Their gin uses hyper-local botanicals: foraged mulberries, figs, abalone shell, coastal daisy, saltbush — ingredients largely unique to them.
• Ells: a brand that is "best in the world" at one thing is more powerful than a brand that does several things adequately.
• Parallel to Chipotle: limited menu meant relentless focus, not weakness.
• Advice: lean into the gin and the botanicals; the vodka and whiskey dilute the story.
• Place-based branding is durable — Ells cited remote Scottish single malts (e.g. Laphroaig) as proof that remote origin becomes the brand.
• Guy's suggestion: attach a story card to each bottle explaining what customers are tasting — "the coastline of southern Australia."
• Export idea: carry samples to Australian bars in LA and New York; craft cocktail bars actively seek unusual, story-rich spirits.

Caller 2 — MatZero (Sri Halima, London)

Sri founded MatZero, a USB-C powered heated mat (yoga-mat sized and smaller) that warms the person, not the room. Priced £109–£295. Originally designed for humanitarian use; now gaining traction in outdoor, camping, healthcare, and disaster-preparedness markets. Question: how to focus without losing the mission.

• Ells: the outdoor enthusiast market is a natural fit — heated gear is already expensive and well-accepted by that audience.
• The humanitarian mission becomes a brand asset, not a distraction: position it as "buy one, give back" or a give-away-per-units-sold model.
• Scale the commercial side first; the mission-driven distribution follows once the economics work.
• Guy's suggestions: ice fishing, mountain guides, stadium seating, polar/Antarctic expedition partnerships.
• MatZero already has units at Everest Base Camp — strong proof point for marketing to high-end adventurers.
• Built-in sensors auto-regulate temperature, so the mat draws power only as needed — a genuine technical differentiator.
• Expedition and athlete partnerships provide organic social content in extreme environments.

Caller 3 — Cantina di Rosina (John Rarick, Philadelphia/Abruzzo)

John reclaimed his family's 19th-century vineyard in southern Abruzzo, Italy, 100 years after it was abandoned. Producing 15,000 cases this year; ~80% sold in the US (NY, PA, NJ, FL). Question: how to market wine to younger consumers as overall alcohol consumption declines.

• Ells: avoid traditional marketing; build one-on-one relationships first, then let customers become advocates — exactly how Chipotle grew.
• Guy: the newsletter should be a resource (food pairings, cooking tips, Abruzzo storytelling), not a promotional tool.
• Abruzzo is unknown to most US consumers — that's an opportunity, not a liability; discovery is compelling.
• Idea: send bottles to influential NBA/NFL players; athlete-driven wine culture is growing.
• Ells: invite top chefs and wine figures to the property; let them carry the story to their diners.
• Wine club subscribers are recurring revenue — prioritise deepening that relationship now.
• Guy: host exclusive dinners featuring barrel samples and aged-only bottles to reward loyal members.
• TikTok/social content around terroir and the family legacy story can reach younger audiences organically.

Steve Ells's closing reflection

When asked what advice he'd give his younger self:

• He worked from morning to night without days off in Chipotle's first year.
• In hindsight, a more balanced life might not have slowed growth — and might have broadened his thinking.
• Now prioritises time for friends, family, and reflection alongside hard work.