Chipotle Quality Issue

Chipotle Burrito has 65,000 unique combinations with extraordinary ingredients. Chipotle is quick, simple, and enjoyable to make. Their experience for serving customers begins from start till the end of creating customers food. The company emphasizes on unique food culture by serving food made with quality ingredients from sustainable sources which is prepared by using latest pressure cookers (Chipotle strength) .

In the near past, chipotle was owned by Mcdonald's, suddenly their CEO decided to separate from them due to the bad quality of the mcdonald's food industry. Chipotle over the years tried to make their food as the most fresh and best when it comes to the quality of the food and they have been succeeding in their plans. After finishing classes that day, I didnt have much time for eating lunch so my options were not a lot, which is why I chose chipotle. I had a couple of friends with me, and we ordered several orders to share. To try the best thing they had.

In order for Chipotle to ensure people will follow the Code, it has to be enforced when someone violates the code, which minor violation consequences may mean a form of discipline. While major violations could lead to termination from work or depending on the violation may even go to trial if a law was

Chipotle has a major opportunity to increase its number of customers and most importantly its profits. Unfortunately, even though this fast food franchise has the capabilities of fulfilling the rise in demand, they still have to take into consideration all of the factors that can still hurt the company. As listed above in the analysis, Chipotle has to continue to improve their food and services to continue to bring in more customers. Their opportunity can also become a weakness in the near or far future, the current trend is to eat healthy, consumers may get over this fad and may not worry as much on the amount of calories they consume.

Chipotle had a crises of an E. Coli outbreak starting in Oregon and Washington State. Three people in the Portland area and 19 people in Washington became sick after eating at the Mexican food chain since October 14 (Le, 2015). According to Zaremba (2010), in risk situations the quality, quantity, speed and delivery method for instructing information is paramount. Chipotle was consistent with Zaremba (2010) when the outbreak came out, Chipotle chairman Steve Ells quickly pledged that he was going to work “harder than ever to ensure that our food is safe and delicious,” including ramping up efforts with the chain’s new food safety program (Swann, 2015). Chipotle also demonstrated speed consistent with Zaremba (2010) in where it closed the 43

Since news about the Chipotle food poisoning broke, a lot of people became more concerned about the food they eat. The public began to realize that even renowned brands and giant food chains can also be the breeding ground for the next food related fiasco in town. Because of the two outbreaks of Norovirus (a virus that causes diarrhea, vomiting, body pains and fever among others) in Simi Valley and Boston, two E. coli outbreaks, and one Salmonella outbreak in Minnesota, Chipotle is now facing rapid drops in their food revenue, a decline in their stock value, a criminal investigation and a lawsuit.

Chipotle is one of the most successful restaurant in the U.S. but every organization got some weakness and problems, today I would like to share with you what is the biggest chipotle’s problem ever that cost this restaurant a lot of money and lose trust from costumers and bad image in the media which is POISONING !! :- The fifth-biggest multistate sustenance harming flare-up of 2015 was the E. coli episode connected to nourishment served at Chipotle eateries in nine states. No less than 52 people were sickened, 20 of them were hospitalized. The episode was one of a few nourishment harming flare-ups connected to Chipotle this year including a Salmonella flare-up that sickened more than 60 individuals in Minnesota.

Even after recent multistate closing of Chipotle Mexican Grill restaurants, there is no fear that the e. Coli infection could strike locals in the Birmingham area. According the the Center for Disease Control and Prevention (CDC) as of Nov. 12 there have been 50 individual cases reported of illness caused by the Shiga toxin-producing Escherichia coli O26. The cases included 33 from Washington State and 19 from Oregon, the common factor is all those infected ate at the popular Chipotle restaurant days before. Due to this restaurants in Washington and Oregon were closed to investigate the possible causes of the illnesses.

More importantly, the significant challenges facing this company is the treats of the new restaurant 's entrance to the fast-food industry and the domestically owned restaurants. Chipotle 's competitors such as Taco Bell and Chili 's restaurants can offer Mexican food at a lower cost, and they both have a quick service to their customers. However, locally restaurants can offer their customers the food they want because they have a chef who makes it. Another treat that Chipotle will face is the increase in labor cost because employees demand a higher salary. According to the MarketLine about

Sensitivity Analysis The sensitivity analysis focuses on examining how Chipotle’s valuation changes when some key inputs vary. Two of the most important inputs of the valuation are the weighted average cost of capital (WACC) and the perpetuity growth rate. In this thesis, it is assumed that Chipotle would have a WACC of 6.65% and a perpetuity growth rate of 2.84%, which would result in a share price of $443.90 for Chipotle.

The most obvious problem is that their staff is often poorly trained. Addressing this problem would go a long way in fixing the other weaknesses which are getting orders wrong, not refilling drinks, taking too long to bring food out and not being consistent between locations. One thing that was evident in this research was that the Auburn location is greatly underperforming other locations. While all locations exhibited some degree of these problems, the Auburn location was by far the worst. This restaurant consistently gets orders wrong which can lead to upset customers and bad word of mouth reviews.

Chipotle is in the fast casual industry where competition is extremely intense since there are so many different dining options. An industry like fast casual restaurants has a very high growth rate therefore there is not just one company that has the market cornered. What sets the restaurants apart is not cost but product differentiation; they position themselves in the market with their slogan of Food with Integrity. Since restaurants in the fast casual industry are priced fairly in the same range Chipotle uses different product features to set themselves apart from the others (parature.com). The first value driver in Chipotle’s differentiation strategy is the product quality; they utilize local farmers who are conscience of the environment.

Bargaining Power of Suppliers Not like many other names in the fast food industry, Chipotle's bargaining power of suppliers is higher than most. If you take for instance Mcdonald’s or Taco Bell, their main focus is not how the cow was raised that supplies them with one dollar hamburgers or where the tomatoes were grown that they are larger

Abstract Chipotle Mexican Grill is a well-known company that deals with fast food and has made significant and distinctive progress compared to other companies in the fast food industry. The company not only prepares food in front of customers but also makes sure that food is made with integrity. The integrity is enhanced by finding, evaluating, and choosing the right ingredients, which are from animals, farmers, and the environment (chipotle.com). These are the principles that serve to direct and guide the organization and help position it as a leader in the industry.

With its mission statement of “Food with Integrity” Chipotle has seen success over the last decade. But with the increase of raw material input increasing, Competitors using pricing strategy to compete for its market share and the economic Chipotle is facing some though decision on if it should continue with its “Food with Integrity” which it can ill afford in these difficult times. In this paper, we will try address ways in which Chipotle can reposition its efforts to focus more on this unique offering without affecting their “Food with Integrity” Concept. By doing so, we believe that it can capture the important and growing segment of customers who are the health-conscious, organic-friendly consumer.