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Chipotle case study
Chipotle case study strategic management
Chipotle Mexican Grill Case Study Analysis
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Question (1a) Current and Future Key Success Factors:
Current KSFs
Clear mission: Chipolte has a very clear mission statement “Food with Integrity”, the company tried to use high quality ingredients, which are organic, non-frozen food, to make food accessible to all people with affordable price. The company has a clear brand image: Chipotle serves fresh, healthy and natural food. For example, Chipotle purchase the ingredient from the local market near the store, and the stores do not reheat the food.
Simple product lines: Chipotle has a really focused, limited menu. In the menu, it can be categorized into 4 parts: burritos, tacos, salads and beverages. The restaurant never offers limited-time or promotional items. A focus and limited menu not only helps Chipotle to maintain an average taste, but also prevents Chipotle to waste money: (1) the company don’t have to spend too much on advertising if there are no new items. (2) the company don’t have to teach the staff how to prepare the new items.
Let the customer have meals in their way (Food Customization): Unlike most of fast food restaurants, Chipotle create options for its customers, customers can combine and pick the ingredient based on their preference. By using the co-development, customers are more likely to return even they had bad experience; customers might think that
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Chipotle held food, ideas & music festival every year. The company invited local farmers and chiefs to provide healthy meals. The idea of the event is to show the support the sustainability and enhance the brand image-fresh, healthy & natural to its customers. In the films Chipotle made, they all communicate and show the respect for the food and environment. The company successfully build a clear brand image to increase the favorability and to strengthen the main idea: natural, fresh &
...y ingredients in markets like China and India would be an arduous task. The commitment of quality may not be viable in most developing nations at present, which would keep Chipotle from meaningfully entering or expanding in these fast-growing markets. Ultimately, it would be a trade-off between growth and quality until the ingredient become widely available.
Chick-fil-A’s system is closely aligned with the TQM system because their primary concerns are quality in products and services, customer satisfaction and overall dining experience, and employee loyalty. Top -management focuses on the long-term rather than the short term results, which is one of the reasons they promote Chick-fil-A by giving away free meals. Dan Cathy the president of Chick-fil-A, Inc. said, “While others might think giving away so much is a shortsighted waste of money, we understand the return that will come from that investment” (Cathy, 2009). Customers will come for the free products and enjoy the experience so much; they will return and tell their friends and family. Chick-fil-A puts quality first in every aspect of the company. For example, Floor maintenance is very important at Chick-fil-A. It is the third largest
With the ever growing society that we live in today, it is a challenge to uphold a business with conservative values. When attempting to accommodate all stakeholders, taking a conservative approach can be very limiting. As conservative companies expand nationally and internationally, they face the challenge of needing to appease a wide range of customers that hold different values. With that being said, Chick-Fil-A has become a very controversial company in the past years with questionable ethical decisions pertaining to gay rights.
Steve Ells founded Chipotle in 1994. When the company first opened its first restaurant, their model of business was a first of its kind. They operated a restaurant business that lies between fast food restaurant and fine dining. The management of the company pride in providing the customers with food services in a fast manner without necessarily the customers experiencing the literal fast food services experience (Ragas & Roberts, 2015). According to the company, their services are high-quality fine dining but delivered in a fast manner synonymous with the common fast-food experience. That model of business practiced by Chipotle has come to be referred as casual restaurant business model.
Chipotle competitive advantage or Strengths has come from the ingredients that come from sustainable sources. According to the MarketLine article about Chipotle Mexican Grill SWOT analysis "Chipotle serves food using naturally raised meat (pork, beef and chicken) and dairy cattle... in 2014 the company served over 155 million pounds of naturally raised meat." Chipotle cares for their customers because they are not giving us food that has hormones and addictive substances. Their competitive advantage has changed the company culture and mission Statement nowadays they called it now food with integrity, the idea that their food is made with the respect for the animals and the
As you know, Chipotle values our “food with integrity” promise and our customers respect that. However, the recent E Coli outbreak has caused Chipotle’s financial performance and reputation to suffer significantly and staying with our current business model is not our best option. Therefore, I recommend we rebrand and reposition Chipotle to ensure our long-term success.
1.3 Market Segment Chipotle is classified in the restaurant industry as fast casual, a combination of the quick serve and the casual dining segments. Fast casual restaurants have the following attributes: high quality food, upscale atmosphere, higher check averages between $7-$11, and pay at the counter (What exactly is fast casual?, 2008). 2.0 Market Opportunity Analysis 2.1 Market Trends The restaurant industry grew to $403.5 billion in 2010, a growth of 2.1% from 2009 (Consumers still thrift when dining out, 2011).... ...
Operations: Chipotle has set standards from when the food is bought, to when it's produced and to when it's sold. This quality control is performed by their Quality Assurance group, which foresees all of these positions.
My expectation before I’ve ever walked into a chipotle was that it was just some other Mexican grill restaurant and it wasn’t worth my time. When I actually went there and felt the vibe and tasted their food I was blown away. It was the best thing I’ve ever gotten. Trying the barbacoa is the best thing I’ve done so far in my life. Chipotle is a great experience because you don’t feel like you’re just going to another same fast food place. You can actually sit down and take some time out of your day to just relax and take a breather while eating some delicious food. Every time I go to chipotle, I experience nothing but good things.
o Having friendly people take care of customers. o All while increasing awareness and respect for the environment, by using organically grown fresh produce, and meats raised in a humane manner without hormones and antibiotics. Maintaining a limited menu allows Chipotle to focus on the quality of the products offered and create personalized dishes for their customers. The serving area is set up much like a buffet line, allowing customers to choose what items they want to include in their meals and are served instantly after completing their order.
When Chipotle first opened in 1993, the goal was to serve quality food fast, but not be considered “fast food.” To avoid falling under the fast food stigma, Chipotle strives to find the best ingredients with respect to animals, farmers, and the environment. In order to achieve these goals, Chipotle has created a matrix organizational structure that is divisional by location and functional by authority. Chipotle recently expanded internationally to the United Kingdom, Germany, and France, each following strict guidelines assigned by corporate employees from their headquarters in Denver, Colorado. Similarly, each location is functionally organized according to authority: regional manager, district manager, store manager, assistant manager, and
According to the Panera Bread website (2011), the company mission is simply “A loaf of bread in every arm.” (para 7).
Pace is owned by Campbell Soup Company, and Old El Paso is owned by General Mills, both huge food manufacturers. In order to avoid brand parity with these big brands, Hector’s company and product need unique characteristics to give patrons a reason to buy Hector’s products. Both, Old El Paso and Pace, are not authentic companies because huge corporations run them (General Mills is located in Minneapolis, Minnesota; Campbell’s is located in Camden, New Jersey). Hector needs to capitalize on the fact that his salsa is not only superior but also authentic Mexican food. Such a product doesn’t seem to exist on the market yet. Thus, Hector could operate in a niche market of customers buying high quality, authentic salsa. Also, both major competitors do not focus on salsa. Hector has a salsa with unique texture and taste. A product with different features helps to avoid brand parity with
Burger King delivers value to their customers through their products, prices, and place and promotion strategies - (“BK doesn’t just promise value, they actually deliver value”). Burger king has been in existence for 60 years and is growing rapidly in many other countries. Burger King delivers quality, great tasting food which satisfies ones need or wants and captures the value of customers even before the first purchase is made. Burger King has products very unique from other competitors such as KFC and McDonalds. The difference is that Burger King does not limit their customers in terms of what they eat. For example, when I spoke to a customer also big fan of Burger King, he mentioned that the sauces are left public for the customer to decide on which sauce to have rather than giving the customer one kind of sauce such as McDonalds and KFC. The cold beverage is also self-help service in which customers can help themselves to a bottomless drink. This way the customer feels free to choose what satisfies the need or want.
The company’s product is primarily comprised of burritos, bowls, tacos and salads. Customers can freely choose what they can put in their food, allowing for customization, which is one of the key factors that Generation Y prefer. As millennials place a great emphasis on eating healthy, Chipotle has strived to meet their customer’s expectations. By 2001, the company served 100% naturally raised chicken and pork. In 2013, Chipotle became the first restaurant chain to voluntarily discontinue the use of genetically modified organisms (GMO). Additionally, by 2015, the company met its goal of no longer serving foods from GMOs. They also use fresh ingredients that come from local farmers and other suppliers that focus on