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Global strategy for Chipotle
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In 1993, the first Chipotle Mexican Grill restaurant (pronounced chi-POAT-lay) in Denver, Colorado was opened by CEO and founder, Steve Ellis after he received $165,000 in investments from a bank loan and his father (Pederson). Ellis, a Culinary Institute of America grad and former chef, started the company’s first restaurant to raise money needed to one day operate his own full-service restaurant (Berta). The company’s menu includes burritos, tacos, salads and burrito bowls (burritos without the tortilla) made with customers’ choices of pork, shredded beef, chicken, steak, beans, veggies, and burrito condiments (sour cream, salsa, etc.) (annual report). When Chipotle was first established, Ellis did not like the restaurant’s closed kitchen format because customers would often have to yell out their food orders to employees who cooked in the back of the building. This format did not accommodate customers’ needs for direct contact with employees and have full control over their own choice of ingredients within their meals as cooking staff could make a mistake on their orders because of mishearing. This compelled the founder to change the restaurant’s current format to an open kitchen design in which customers could actually see and choose ingredients that are fully prepared for ordering on a buffet assembly line while being able to directly speak face to face with employees (Pederson). A couple of years later, Chipotle opened a few more restaurants in the Denver area each generating $1 million in sales through word of mouth marketing and employing about 17 workers in each facility (Pederson). In 1998, McDonalds Corporation bought a minority stake in Chipotle as a way to boost their company sales since sales at their own rest...
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... illegal immigrants working within their restaurants. The company was forced by U.S. Department of Homeland Security to separate over 500 undocumented workers. The separation of over 500 employees negatively affected Chipotle’s store operations as most of their workers were immigrants compelling Moran to travel to Washington D.C. and convince members of congress repeal current immigration laws (Pederson). In better news, the company was able increase their stock and be inducted into S&P’s distinguished 500 stock index (Pederson)..By the end of 2012, the company owns more than 1200 stores in the U.S., Paris, France, Germany and the UK. The company also owns an Asian inspired restaurant called ShopHouse Southeast Asian Kitchen in Washington D.C. Chipotle hopes to expand their ShopHouse restaurant concept to other areas including Los Angeles, California in the year 2013
External environment analysis plays an important role in shaping the overall industry. It helps keep the business ahead of its competitors and providing opportunities for implementing innovative ideas. Based on demographic, Chipotle focuses majority of its sales on “Millennials”, who are between the ages 18 and 24. “Serving high quality food with reasonable prices” and the ability to customize your meal with a variety of different options in a fast paced environment is something many consumers are attracted to especially the younger generation. Chipotle’s first restaurant was established in Colorado but now they have restaurants all throughout the United States, Canada, United Kingdom, and so much more, located primarily in urban areas.
...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.
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 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.
Simpson, S. (2015). Chipotle Mexican Grill Inc.: Strategy with a Higher Mission or Farmed and
B. Credibility statement-"Chipotle Mexican Grill, Inc., is one of the leading fast-casual Mexican restaurants in the United States, with more than 1,200 company-owned outlets in 38 states ( International Directory of Company Histories)."
With a unique appeal, a healthy and delicious product, and a powerful social message that made our target customers feel great about eating Chipotle over more traditional fast food, we have pioneered the fast-casual restaurant model our customers admire. Furthermore, our food sourcing is a rewardable effort and it is what we and our customers respect.
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
The Taco Bell and KFC “micro brand” known as ZAK Family Foods is successful for three important reasons: a concept of family, a passion for progress, and a dedication to social responsibility. These three elements have evolved organically from the brand’s very beginnings. In 1979, Jerry Zakaras, now CEO and Franchisee of ZAK Family Foods, began his journey to support his family as a Restaurant General Manager for a Pizza Hut in Plattsmouth, Nebraska. His cooperation with those working with him in the restaurant expressed itself in a way that was very familiar; it was the restaurant family. His value for family was what motivated him to explore the restaurant world, and it was what opened the doors to his business success.
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
“In amassing a $500-million fortune, the king of the hamburger transformed the nation's cultural landscape and forged an industry that is among America's greatest exports.”(Wiley) Ray Kroc was 37 when he started a fortune 500 fast-food restaurant. Before he created this franchise, he was a high school dropout selling cups for Lily- Tulip Cup Company. While selling cups, he quickly became the company’s best salesman. After seeing a Multimixer, he left Lily and spent a decade selling them to drug stores and restaurant owners.” One small restaurant in San Bernardino, California, ordered eight machines. Interested in the people who made this order, Kroc left for California to see for himself what kind of restaurant needed to bust out 40 milk shakes at a time. There he found a small hamburger stand run by two brothers, Richard and Mac McDonald” (Ray Kroc Story). The Mcdonald brother’s restaurant was unlike any other restaurant. This restaurant was self-serve, had no indoor seating, and limited to only cheeseburgers, hamburgers, fries, drinks and milk shakes, all of which were produ...
The Santa Fe Grill is a relatively new Mexican restaurant that was started by two former business students from the University of Nebraska, Lincoln. The idea sparked after the two roommates who were both interested in pursuing entrepreneurial interests decided that a Mexican restaurant in their city would be highly successful. While taking an entrepreneur class at the University, the plan for the business began coming together. Their main focus was to create a restaurant that would feature the freshest ingredients, as well as a lively atmosphere, cutting edge advertising and marketing, plus exceptional service for customers. (Research Methods, Pg. 19) By doing so, the students hoped that they could fulfill their dreams of ownership.
In 1940, McDonalds was not the multi-million dollar industry that people recognize today. In fact, the company started out as a small drive-in style BBQ restaurant, owned by Dick and Mac McDonald, in San Bernadino, California. However in 1948, the entire workings of the restaurant were altered, making it the dawn of the McDonald’s empire. This new drive-in, like other drive-in restaurants of its time, struggled to make a large amount of profit, due to selling low-priced food using traditional methods, which were often labor intensive and expensive. But the McDonald brothers fixed this problem by reducing their menu 25 items to nine items: hamburgers, cheeseburgers, soft drinks, milk, coffee, potato chips, and a slice of pie. Their staple item, the 30 cent hamburger, accounted for 80 percent of their total sales. Later, the brothers altered the production to that of the Fordist assembly line in order to make the whole operation fast and efficient, halving the price of their items, including their prized hamburger. (http://www.aboutmcdonalds.com/mcd/our_company/mcdonalds_history_timeline.html?DCSext.destination=http://www.aboutmcdonalds.com/mcd/our_company/mcd_history.html).
Diversification is important in expanding internationally for any company. Chipotle already has a bunch of different menu items like burritos and salads that can be customized to your liking. Also, Chipotle has opened an Asian restaurant in Washington D.C. a few years back to diversify itself in the Asian inspired dishes (Asian