Chipotle Mexican Grill I. Parent Company A. Chipotle Mexican Grill was founded in 1993 by Steve Ells. (Daszkowski, 2017). B. Chipotle follows a mission of “food with integrity”, aligning with the health and social values from consumers (Thompson, 2017). a. “Described as serving top quality ingredients, raised with respect for farmers, animals, and the environment” (Miskelly, 2013). b. No fast-casual chains have been able to recreate Chipotle’s ethical food values (Miskelly, 2013). c. In March of 2017, Chipotle declared that they were the only national chain with no additives in their food (Leigh Anne and Zinsmeister, 2017). II. Consumer A. Chipotle’s consumer is someone who values food and wants qualities in that food such as fresh, fast, and …show more content…
Chipotle targets young professionals that are socially aware and care about where their food comes from and the quality of said food (Miskelly, 2017). C. Chipotle is targeting for people willing to pay a little more than normal for their food (Miskelly, 2017). a. Chipotle is looking for younger consumers that have more income to spend (Wong, 2008). D. Chipotle is target customers that are very connected to social media and will continue to advocate for their brand through the internet (Miskelly, 2017). E. The fast-casual industry is also getting the baby boomer cohort, as they find dining too expensive but fast food is too casual (Wong, 2008). III. Industry A. Current customers are focused on global initiatives, and are more aware of the ingredients in their diet. (Agrawal et. al, 2017). B. Casual dining was affected during the recession in the 2000’s, and it is also where you can see a boom in fast-casual dining (Miskelly, …show more content…
At the first opening of Chipotle, it was calculated that it needed about 100 burrito sales a day to get profit. After the first month, Chipotle was selling over 1,000 burritos per day (Daszkowski, 2017). B. Chipotle has a small menu consisting of a few items; burritos, burrito bowls, tacos, salads, and a kid’s meal. They also offer chips with guacamole, salsa, or queso. They even have alcoholic beverages available for customers over 21 (Chipotle-Menu, 2017). V. Problems and Opportunities A. There are many opportunities with Chipotle. a. Chipotle is a favorite with the use of ethically sourced product (Agrawal et. al, 2017). b. Chipotle has a strong brand image and stays committed to its mission of changing the culture of food (Miskelly, 2017). c. All Chipotle stores are owned by the company rather than being franchises. This is uncommon amount fast food or fast casual restaurants (Miskelly, 2017). B. Chipotle has unique challenges that will continue to pop up. a. In 2015 Chipotle’s customers fell victim to various E-coli outbreaks at different stores in the country (Daszkowski, 2017). i. There was also a norovirus outbreak at a Chipotle location in Virginia, which may have set the company back even more than the previous E-Coli outbreak (Peterson,
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.
New restaurant openings and comparable restaurant sales increases are important factors contributing to Chipotle’s increase in revenues in recent years.
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.
Chipotles has taken the market share during their launch of the new Vegan option. “Chipotle Mexican Grill introduced Sofritas, the first vegan meal offered by a national fast food chain that's not a salad or a veggie burger.” (Neporent, 2013). Taco Bell and Chipotle share the same market share, and there is a potential that
Chick-fil-A has become a very successful company throughout its history till today. Many different events have occurred throughout the history of Chick-fil-A. The owner of the first Chick-fil-A, Truett Cathy, opened his restaurant in Hapeville, GA in 1946. Later on the first Chick-fil-A acquired the nickname the Dwarf House. Later on Truett Cathy invented the first chicken sandwich by using a pressure cooker to cook a boneless chicken breast as fast as a burger. This simple process began the famous Chick-fli-A chicken sandwich. Chick-fil-A’s overall mission has always been and continues to be “Be America’s Best Quick Service Restaurant.” Chick-fil-A has been quite successful in living by and fulfilling this simple but effective mission. In
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.
Chipotle’s Chief Executive Officer, Steve Ells has been reputed for having started the restaurant chain in a unique way which has contributed to its apparent success over its main competitors. Chipotle business has grown exponentially from when it was first formed with most of this growth attributed to the founder’s control process in the business. When Steve Ells first got into the industry, he acknowledged the need for promoting innovation and
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
Such factors may include threat of new entrants, power of suppliers, power of buyers, product substitution, and the intensity of rivalry among competitors (Hitt, Ireland, & Hoskisson, 2013). Since Chipotle was opened in 1990, they have already become a well-established company within the industry. In order for Chipotle to continue having a competitive edge in the market, they must heavily compete with companies or restaurants such as Qdoba that offer a wider variety of menu options for lower prices. Chipotle directly works with suppliers, usually in local areas, to permit more competitive prices to buy their products. Since Chipotle focuses so greatly on product quality, the supplier’s power plays an enormous role in Chipotle’s ability to obtain their raw
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
From a study completed by Chicago-based Research International USA completed a study called “Fast Food Nation 2008. The panel consisted of 1,000 respondents of ages 16-65 who provided their inputs with an online survey which was conducted between March 13 through 2008. Which was based on results on fast food restaurants like McDonald’s, Burger King, and Wendy’s are gaining popularity even through the economic hardship and recession. Marketing strategy has become more of influence on kids and young American’s. As population grows and the demand increases of fast food restaurants are expanding their stores to capturing more consumers. Fast food chains are also willing to change their menus to continue to gain and retain repeating customers. With each generation that passes, brings fast food chains into more homes and continues impacting lives.
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,
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