How did Chipotle initially get funding?

Chipotle initially received funding from its founder's father. Steve Ells convinced his dad to lend him $85,000, which was partly an investment and partly a loan, to open the first restaurant near the University of Denver campus in 1993 1. As the business grew, Ells continued to expand by signing leases for new locations. Further funding came from his father for several more restaurants, but eventually, Ells had to learn to raise money himself by creating a business plan and pitching to investors 2.

In 1998, after a period of organic growth, Chipotle received a significant boost in funding from McDonald's. This strategic partnership provided $350 million in growth capital, enabling Ells to scale the restaurant chain to about 500 stores. The investment allowed Chipotle to leverage McDonald's expertise in scaling and restaurant efficiency, which was crucial for its rapid expansion 3.