Dear Mr. Ells and Mr. Moran, As you know, Chipotle values our “food with integrity” promise and our customers respect that. However, the recent E Coli outbreak has caused Chipotle’s financial performance and reputation to suffer significantly and staying with our current business model is not our best option. Therefore, I recommend we rebrand and reposition Chipotle to ensure our long-term success. Chipotle is valued as a store that serves “food with integrity.” 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. However, Chipotle’s health crisis shows fresh food comes at a price. Consider the following: • 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 …show more content…
When Chipotle was revealed as the source of multiple outbreaks of illnesses that sickened nearly 600 people in 13 states in 2015, it came at a significant cost. We closed stores, spent several months under investigation by the CDC and other health organizations, and we faced a criminal investigation in connection with the incidents. With significant decreases in same store sales, operating margins as well as a 44% drop in our net income for the final quarter of 2015, it is evident that this crisis plunged Chipotle to a never before seen depth.
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.
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].
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.
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 foods, upscale atmosphere, higher check averages between $7-$11, and pay at the counter (What exactly is fast casual?, 2008).
Most of them reported eating food from Chipotle within the week before their symptoms began. Twenty of those individuals have been hospitalized.
Chipotle Mexican Grill is one of the most popular Mexican restaurants in the United States, which offers burritos, bowls, tacos, and salads. It is one of my favorite restaurants to visit.
Any Chipotle I have always gone to have always had good service. Their employees are great. There is never a sour moment when you ask for anything, they are always kind and welcoming. I am always greeted with a hello and a smile when I step up to order. Even if the employee serving you has had a bad day it never shows, you would never know. Despite the lines being basically out the door every time you come (which is the only downside to coming here), the wait time can give you a headache. It is worth it, because Chipotle for sure serves fast food; they usually have three employees working to serve the food. One to get what you order prepared, one to add what extras you and to finish packing it and one to cash you out. The menu is very easy to read and figure out what you want. They have all of the print on the menu in white and big font so it makes it simple for everyone to read. So there isn’t any trouble ordering what you want. They have many different options to choose from as well. You don’t always have to get the burrito.
Simpson, S. (2015). Chipotle Mexican Grill Inc.: Strategy with a Higher Mission or Farmed and
C. Thesis Statement- The purpose of this presentation is to demonstrate why Chipotle is an undisputed leader in the growing fast food casual.
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
E. Coli and other foodborne illnesses are something that should be of major concern to everybody, becasue nobody is safe from it. It is not something that can be prevented or
“Subway says boosting sales at existing restaurants is its biggest priority right now (Peterson, 2015).” From 2012 to 2014 Subway saw a decrease in sales and realized some of their competitors like Chipotle were making more money. How were they making more money? Well Chipotle starting advertising with antibiotic free meat. Just recently Subway decided to follow the trend and do the same, at the beginning of 2015 Subway started advertising antibiotic free meat. The restaurant has already seen a drastic increase in profit. Once Subway and Chipotle put these antibiotic free labels on their food they quickly received more interest in their restaurants. This leads to the fact that the American consumer is not very educated about not only where their food comes from, but also how it is processed. These restaurants should not be getting rewarded with an increase in profit for providing the consumer with false information; in order for this to stop people need to realize they are being taken advantage
9. "Chipotle: Food With Integrity." Chipotle: Food With Integrity. N.p., n.d. Web. 16 Mar. 2014. .
I think Chipotle initially thought the food poisoning was restricted to one restaurant. Unfortunately it was not. After the second incident, testing should have immediately been implemented in all stores. It was positive Chipotle worked with state and federal health officials and conducted the deep cleaning in all restaurants.
Chipotle Mexican Grill, a Colorado-based organization, has been serving integrity-driven burritos since 1993 when the first Chipotle restaurant opened in the suburbs of Denver. Prior to the opening of the first Chipotle restaurant, Steve Ells who is the founder of Chipotle, began his journey in San Francisco, California at the Culinary Institute of American with dreams of opening his own full service dining restaurant (Chipotle Startup Story, 2014). Once Ells graduated, he returned to his home town of Boulder, Colorado to begin plans on opening the restaurant. To fund his venture, Ells needed cash flow. He decided to open a burrito restaurant similar to the one he frequented in California while attending school. Ell’s raised some capital