Since its inception, Chipotle Mexican Grill has faced a number of issues in regards to how employees are treated. There have been reports of employees not being paid for the work they are asked to do, not having clear leadership or direction, and favoritism from managers towards certain employees. This report will further explore the issues Chipotle is facing, as well as offer suggestions for improvement. However, with every new plan there is always the chance of issues during the implementation of new ideas/plans. In summary, this report will offer solutions to Chipotle’s management on how to fix the issues already in place, recognize the issues or problems that will arise, and try to offer suggestions on how to control any push back.
Company Information:
Chipotle Mexican Grill was founded in 1993 by Steve Ells in Denver, Colorado. His idea, or purpose to open a restaurant, was to create a fast-food restaurant that did not feel like a typical “fast-food”
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In 1998, McDonald's invested in Chipotle and helped grow the business from 16 restaurants to over 500 restaurants by 2005, when McDonald’s separated from Chipotle completely (Daszkowski). In 2007, the company went public and as of the time of this report, the stock currently sits around $284/share (CMG). When Chipotle was hit with the E. Coli outbreaks in late 2015, the stock price and overall revenues of the company took a nosedive. The CDC identified thirty-seven cases of E. Coli in eleven different stores across Washington and Oregon (Daszkowski). As a result of these outbreaks, and due to a 2016 class action lawsuit by over 10,000 employees claiming “wage theft”, Chipotle’s financial future is still uncertain. The 2016 year-end financial report states that Chipotle had revenues of $3.9 billion and made a net income of $22.9 million (Chipotle
As illustrated in the table above, the company has increased its restaurant-count by nearly 14% over the last three years. The management expects to open around 180-195 new restaurants this year. With that aim, Chipotle has already unveiled 44...
Simpson, S. (2015). Chipotle Mexican Grill Inc.: Strategy with a Higher Mission or Farmed and
Unfortunately, Chipotle is having some technical difficulties. CNBC report that Chipotle Mexican Grill restaurant has had a recent outbreak of the norovirus (CNBC, 2017). The norovirus is a virus that can be transmitted through food and/or water. It causes inflammation of the stomach or intestines or both. The virus can develop within 24 to 48 hours but will go away after one to three days with proper treatment (CDC, 2017). So, one of the key issues that Chipotle should face is enforcing a strict sick
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
The E Coli outbreak was because of Chipotle’s food chain. Incidentally, when your business model is built upon the idea of serving local fresh food, often with the promise that it’s ethically grown and sourced, your supply chain becomes more complex. Consequently, more complexity means more risk. Chipotle is walking a narrow line between offering “food with integrity” and the risk of introducing foodborne
Chipotle Mexican Grill originated in Denver, Colorado in 1993. In 1998, McDonald’s became the majority shareholder; however, in 2006, McDonald’s divested its controlling interest. Chipotle became a public company listed on the New York Stock Exchange in 2006. It currently has 1,083 locations across the United States and Canada. In May 2010, Chipotle expanded into Europe, opening their first restaurant in the United Kingdom. (Form 10-K Chipotle Mexican Grill, Inc., 2011)
Chipotle restuarants have had norovirus and E. coli outbreaks. They have been given a subpoena and the FDA is investigating the situation. Chipotle seems to be handling the ordeal well. The article thinks that at this point in time the public cares most about how Chipotle (and other restaurants in that predicament) handle the whole ordeal.
Chipotle is my favorite place to eat. As I am sure it is for other people. Chipotle is a fast food Mexican grill. They are most known for how big they make your burritos. Now it is fast food but it isn’t actually fast, they’re like a restaurant but without the wait. They serve all naturally raised meat and organic beans. So there food is pretty healthy and worth eating. The employees are always nice and it just a great place to eat over all. Chipotle is a great choice for a quick fast food stop because it gives great service, atmosphere, food and value. My experience there is always a good one.
In 1993 the first Chipotle Mexican Grill restaurant was opened in Denver by Steve Ells. The Chipotle Mexican Grill, Inc. a Delaware corporation, serves a focused menu of burritos, tacos, and salads that are made using fresh ingredients. Despite the focused menu, customers have the option to personalize their order. The idea of Chipotle was to show that the food can be served fast without having “a fast-food experience.” In the late 90s Mickey D wanted to prove to its investors that it was diversified. It bought stocks from Boston Market, Donatos, Pret a Manger and Fazoli’s. In 1998 McDonald’s invested about
As of 2016 there were 2,250 Chipotle restaurants worldwide. (Number of Chipotle Mexican Grill locations worldwide 2007-2016, 2017) Another interesting fact about Chipotle, is that in 1998 McDonald’s started investing in shares of Chipotle and by 2001 they had become the majority shareholder. In total McDonald’s invested over $360 million into Chipotle. (Myers, 2014) Although they have since split ways, the investment McDonald’s made into Chipotle helped to boost the growing power of the new to market concept burrito
Abstract This paper explores the business strategies Chipotle is using for operations. Analyzing financial and operations data to discuss areas of concern as well as areas where Chipotle Mexican Grill is doing well. Discussions will include the importance of Chipotle’s menu preparation strategy and menu integrity. The marketing strategies
Chick-fil-A recognizes that their brand promise starts the minute the customer enters the premises. When a store opens for the first time, the franchised operator doesn’t just see an opportunity to sell his food product, but rather a “chance to interact, build community, and engage with customers and the community at large. We do this in a variety of ways. First and foremost, we strive to provide 2nd Mile Service to each customer. As we work to continuously improve, we want customers to experience something unique. We want to build community and create relationships between our customers and our food, people and restaurants” [3].
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
Chick Fil A is an American fast food chain which specializes in chicken sandwiches. It was founded by late Truett Cathy in May 1946 and is headquartered in College Park, Georgia. It operates more than 2,200 restaurants, primarily in the United States, where one of the locations is in 3704 Call Field Rd, Wichita Falls and another operating inside Midwestern State University. An innovator from the start, Chick-fil-A was the first restaurant to pair shopping and eating by opening its first restaurant in an Atlanta-area mall.
In America, many are not aware of the inequalities that exist in the Food Service. The food service sector has at least 125,951 companies and approximately 12 million employees with almost 7 million foreigners. This sector includes individually owned restaurants, mid-priced chains, quick service (fast food), hotels, and beverage establishments. Food service plays a major role in institutional establishments like schools, hospitals, prisons and meals on wheels. They cater to the tastes of their particular customers and are often leaders of food innovation. In the food service, we find: bartenders, wait staff, hosts, busboys, chefs, cooks, managers, and dishwashers .The food service workers perform a variety of customer service, food preparation and cleaning tasks, all that which are very important to keep a business running. More concerning , some of the major working conditions that foodservice workers face with daily is no health benefits and significantly low wages. These employees working in the food industry make it possible for millions of people to enjoy food in restaurants but are not being treated or appreciated fairly.