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Introduction to chipotle company analysis
The firm’s goals and values of chipotle mexican grill
Introduction to chipotle company analysis
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Chipotle Mexican Grill, Inc., familiar to many people as Chipotle, is preparing to launch a new customer awareness campaign aligned with the company’s vision of providing “Food With Integrity”, high-quality ingredient food grown with respect to the environment served fast (Chipotle Mexican Grill Inc., 2015). Currently, the restaurant offers customers a selective line of food items where customers can build up to 65,000 variations of their own burritos, tacos, burrito bowls, and salads using only the best fresh organic ingredients. The marketing campaign will highlight Chipotle’s dedication to providing great tasting food from the purest source without genetically modified (GMO) ingredients. Chipotle is the first company in the restaurant industry …show more content…
Its restaurant culture is structured around bringing good quality service to customers much like what you would find in fine dining restaurants while providing food fast. Besides its food and service, Chipotle’s advertisement strategy is less conventional than its competition. Chipotle relies on customers to share their experience with other potential customers instead of spending profits in general advertisements while their competition relies heavily on television advertisements to promote their menu products to customers. This strategy has allowed Chipotle to make better use of its resources to find local farmers that meet the company’s vision in providing “Food With Integrity” (Chipotle Mexican Grill Inc., 2015). The primary marketing objective is to open between 190 to 205 new restaurants by the end of 2015. This will help connect more customers with local farmers providing better quality and tasting food items. By spreading awareness to customers of where their food comes from and how it is prepared, it looks to draw in more customers and increase their profits. Current Market …show more content…
The major players in the fast casual space are: Five Guys, Panera Bread, Chipotle Mexican Grill, Boston Market, Subway, Noodles & Company, Qdoba Mexican Grill, Schlotzsky 's, Au Bon Pain, Baja Fresh, Fazoli 's, Panda Express, Einstein Bros. Bagels, Moe 's Southwest Grill, Cosi, Inc., Steak 'n Shake, Nathan 's Famous, Skyline Chili, Sweet Tomatoes, Penn Station, Romano 's Macaroni Grill, Smashburger, Firehouse Subs, Shake Shack, Corner Bakery Cafe, Souper Salad, Grimaldi 's Pizzeria, Daphne 's Greek Cafe, and Taco Cabana. This year Panera Bread won the 2015 fast casual award presented by fastcasual.com. Chipotle is facing major competition from the rush of new copycat companies and alternatives to Chipotle. Chipotle is already getting market share concerns from the “Samsung’s” of the industry such as Lime and Salsa Fiesta. “It 's all these little, new concepts that are springing up everywhere. There is a mad rush into fast-casual, "Bob Gold an executive vice president at consulting firm Technomic. (Baertlein, 2013). The true test with Chipotle will be how they are going to continue to stay unique in a crowd full of clones. When its lunch time you might want to try something new like the emerging Noodle & Co that happens to be next door to a
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.
The company is driven by a strong set of values, even if some of those decisions increase its costs internally. This is especially the case with the sourcing of its ingredients and meats. In fact, the high-quality ingredients and advanced cooking methods used by Chipotle are second to no other fast-food chain. Among recent developments, the leader in fast-casual dining concepts plans to become absolutely GMO-free by the end of 2014. Although the aim is not new, it shows Chipotle’s commitment to bring fresh ingredients to the table. Besides offering high-quality meals to its customers, the portions are generously sized and the value is unmatched. There are very few places that can fill you up for less that $10 with quality food, and not junk. The triad of fresh, pure ingredients, cutting-edge cooking methods, and tremendous portions gives Chipotle a mouthwatering appeal.
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).... ...
In recent years, it is not even necessary to turn on the news to hear about the bad reputation farming has been getting in recent years. With the media focusing on things like drugs in animals and Pink Slime, or Lean Finely Textured Beef, it is a wonder that people are eating “non-organic” foods. However, many pro-farming organizations have been trying to fight back against these slanders. Still, the battle is not without heavy competition, and a good portion of it comes from Chipotle, a fast food Mexican restaurant that claims to only use completely organic ingredients in their food. Chipotle is constantly introducing advertisements claiming to have the natural ingredients, while slandering the names of farmers everywhere.
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
The fast food restaurant industry, which includes quick-service and fast-casual restaurants, is highly segmented with the top 50 companies accounting for only 25% of the industry’s sales. The $120 billion industry includes over 200,000 restaurants with 50% of those specializing in hamburger entrees. (hoovers.com 2008) The major competitors in the industry include McDonald’s, Burger King, Taco Bell, Subway, and KFC – Chick-fil-A’s major competitor in chicken sales. Chick-fil-A’s unique position in the market, specializing in chicken-based entrées, has lead to a competitive advantage which the company has been able to capitalize on. Recently, many competitors have added chicken entrees in order to compete in the market segment. Through marketing strategies and company initiatives, Chick-fil-A has tried to stay distant from competitors, offering a fresh alternative to the ordinary fast food restaurant.
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.
Local products from local farmers are used to produce the highest quality products with the healthiest ingredients for consumers within Chipotle. Not only do they strive for better food but also healthier food for the customer. The inspiration for Chipotle starts with Steve Ells and is reflect into the company. Ells even testified in congress in 2009 in support of eliminating the use of antibiotics and hormones in ranching and farming (Ells, 2010). This is reflects back into the Chipotle company through their products and employees which in turn represents their amazing social responsibilities in the food service industry.
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
"Study Says Fast Food Remains Popular - Restaurant News - QSR Magazine." Quick-Service and Fast Casual Restaurant News and Information - QSR Magazine. QSR Magazine, 20 June 2008. Web. 17 Feb. 2010. http://www.qsrmagazine.com/articles/news/print.phtml?id=6789
In visiting Chipotle’s website, it is adherently clear that they are trying to do a few things to overcome their recent faux pas from the past. Putting a majority of their site’s focus on their sustainability story, how they are helping the environment,
The term “fast-food” is usually distinguished by food served very quickly to a customer by drive-through or carry-out. Fast-food restaurants are highly associated with low-cost and malnutrition foods with brief consumer and employee interaction, and below average cleanliness based on restaurant health inspection reports. Chick-fil-A has changed the usual perception of fast-food restaurants. Rather than burgers and potato fries, Chick-fil-A serves chicken sandwiches and waffle fries. Chick-fil-A also shows their appreciation for employee to customer relations, rather than ignoring the social aspect of serving customers when operating at a fast pace. Chick-fil-A’s menu selection, customer interaction, and clean eating
For millions, fast food restaurants are the source of positive associations with birthday parties, play dates and accessible comfort food. For others, they represent a lifeline meal on a busy day, or the secret to quieting a cranky toddler on a long trip because hurrying residents of cities have no time to cook a healthy breakfast, lunch and dinner. Fast food presents even in the lives of people who are trying
CHANGING PREFRECE depended vastly on the fast food manus. For example we can mention about SALAD. Now salad was never considered as a part of fast food menu. But with the change of taste and preference, fast food chains like Windy, Taco Bell, and McDonald have introduced SALAD into their menus. This preference is not stopping only with salads. In 2002, McDonald’s introduced great tasting new products including premium salads, n salads plus menu; Chicken McNuggets made with white meat; Fish McDippers; Chicken Selects; and new breakfast offerings like the McGriddle sandwiches. Here as a fast food chain, McDonald did not have to introduce new dishes in their menus but with the impression and image in the market analysis, of increasing demand and chan...