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Chipotle's structure and culture
Chipotle's structure and culture
Chipotle's structure and culture
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Chipotle Mexican Grill is a chain of restaurants that first opened in 1993 in Denver, Colorado by Steve Ells. With a culinary degree, experience as a sous chef, and a $85,000 loan from his father, Ells opened the first Chipotle Mexican Grill. Originally Ells estimated to sell 107 burritos per day in order to turn a profit but within the first month the managed to see more than 1,000 burritos per day,1 this only confirmed that the Chipotle brand to be a success right from the start.
By 1996 the store opened two more locations and Ells’ father invested an additional $1.5 Million. Ells then created a board of directors and raised an additional $1.8 Million.1 After two years the company attracted bigger fish, McDonald’s made a small investment in the company. In 2001 that commitment makes McDonald’s to be Chipotle’s largest investor.2 However, by 2006 McDonald’s fully divested from Chipotle because of a larger initiative for McDonald’s to focus solely on the main McDonald’s chain.3
The first 12 years of the brand saw
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Chipotle practices having fresh ingredients and that means not having freezers in their restaurants.13 That makes having a plentiful stock hard but it also bring an issue on always keeping vegetables fresh when they're not refrigerated. This problem became an issue for over 40 restaurants in the Washington and Oregon area after they were closed due to an E. coli outbreak the last couple of months of 2015.14 52 people were struck with the illness over six states.15 Chipotle handled the news by closing down all of the Washington state stores and a few Oregon ones as well but also promised a deep cleaning and sanitization of the restaurants in the affected areas.16 They also released a statement about tightening the food protocol on locally sourced food that comes in which could jeopardize things in the long run for the company as some things might not be locally sourced as they state
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].
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...
1.1 Brief History Chipotle Mexican Grill was founded 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.
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.
According to chickfila.com, for more than 40 years Chick-fil-A has been taking pleasure in serving customers and in that time, Chick-fil-A has become one of the largest privately owned restaurant chains in the nation. (chickfila.com) Lets find out why Chick-Fil-A is so successful. Back in 1946, an enterprising young Georgia restaurateur named Truett Cathy started serving food in a tiny restaurant called the Dwarf Grill in Hapeville, Georgia, south of downtown Atlanta. (chickfila.com) In 1963, he conceived what he determined was a simple idea: make and market a mouth-watering chicken sandwich. (chickfila.com) The simple idea has taken off into the economy. Truett opened his first Chick-fil-A Restaurant at Greenbriar Mall in Atlanta. That is where he served his perfected Chick-fil-A chicken sandwich, intentionally creating it from the finest quality ingredients, including whole breast of chicken and low-fat peanut oil. From its modest beginnings in the tiny south Atlanta eatery more than 60 years ago, Chick-fil-A has grow...
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.
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)."
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
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
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
"Consumer trends are changing, which we believe is a great result of people becoming more discerning about where their food comes from, how it was raised, and how their meal was prepared. The continued loyalty we see from our customers, as well as third party research, and the growing number of concepts imitating Chipotle, all point to the relevance of our vision and the impact we are having on food culture. We are delighted to see that this vision, a very lofty goal, is becoming a
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
One reason was to try and help control costs. Healthier food items cost more and Chipotle wanted to keep the cost of their meals low for their customers, so they built relationships with certain suppliers. Eventually, they began to use distribution centers across the country that only purchased ingredients from their approved suppliers (Gamble, Peteraf, & Thompson,
In 1953, Troy Smith, the founder of SONIC and World War II veteran, was living in Shawnee, Oklahoma. Troy dreamed of owning his own restaurant business. In fact, he had already tried twice.
Founded in 1953, Sonic has become the largest drive-in chain in the nation. Sonic was founded by Troy Smith, Jr. in Shawnee, Oklahoma. His dream was to own his own business. Sonic Drive-In keeps the 1950s alive through its chain of drive-in restaurants, each complete with speaker-based ordering systems and carhop servers - some on roller skates. Sonics top competitors are McDonald’s, Burger King, and Wendy’s. McDonald’s is the leading competitor in the fast-food industry. McDonald’s has the most restaurants with 12,380 locations and has over 364,000 employees. Burger King has 11,350 outlets in 57 countries and territories worldwide. About 75% is located in the United States. Wendy’s is the third largest quick-service hamburger restaurant chain in the world, with more than 6,600 restaurants in North America and international markets.