Chipotle Strategic Profile and Case Analysis Purpose Chipotle Mexican Grill founded in 1993 by Steve Ells became known as the fast-casual dining in the restaurant industry (Hitt, Ireland, & Hoskisson, 2013). It was the first of its kind when Ells first opened his first restaurant and brought the idea of made-to-order burrito. The concept is so simple, and the consumer is in control of what ingredients goes into their burrito. “The immediate success from Ells’ first restaurant allowed him to repay the $80,000 loan that he borrowed from his father within a month of opening” (Hitt, Ireland, & Hoskisson, 2013, p. 71). Furthermore, this gave him the confidence to open his second restaurant in just two years. Chipotle’s business model is so attractive …show more content…
Who would have thought that technological trends play a role in the food and service industry? Because Chipotle’s service is a hybrid between fast food and casual dining, it is in the organization’s best interest to leverage the technology that is currently available to their consumers. According to Chipotle, they’ve improved customers wait times by 50 percent since they’ve introduced digital orders (Kell, 2017). For people who are constantly on the go, Chipotle is a fast and healthy alternative that is better than fast food. Demographic Trends. Chipotle’s major consumers are the millennials. According to Washington Post, the millennial generations (born between 1981 – 1996) make up the largest demographic of fast casual dining because they view fast food choices as unhealthy (Ferdman, 2015). With the price point of fast-casual ranging between $9 and $13, the millennials would pay almost twice compared the cost of fast food which is around $5 for a healthier choice (Ferdman, …show more content…
Any successful organization with profitable goods and/or services pose the risks and threats of new entrants from competitors. Chipotle is very vulnerable because of the mishaps that hit the organization in the last two years. Competitors will use this as a perfect opportunity to gain market share by offering food that are safe to eat. Threat of Substitute Products or Services. When Chipotle first introduce the fast-casual dining model, it was one of the first in the industry. Since then, others have followed the same concept and consumers now have a variety of choices from Mexican, American, Italian, Mediterranean to Asian cuisines. Today, Chipotle is not just competing against competitors who offers the same ethnic food but also against competitors who provides food from other countries. Bargaining Power of Customers. Chipotle consumers have the upper hand in this situation because of the choices available to them. There are a wide variety of choices they can choose from at different price points. Chipotle’s challenge is to regain their consumer’s trust and provide food and/or services that is unique to their
Chipotle and Qdoba each have their similarities and differences. Dating back to the 1990s, Chipotle and Qdoba were both created within a few years of each other. Each restaurant classifies itself as a “Mexican grill” with an assembly line style of ordering. Though Chipotle and Qdoba have the same restaurant set up, they differ in price, product choices, and advertising. The prices between Chipotle’s and Qdoba’s meals differ.
The dedication, devotion, time, and loyalty Chipotle takes to provide its customers with top quality nutritious ingredients every day is praiseworthy. Even though supply-demand has often occurred resulting into unavailability of locally grown products, Chipotle has managed and continues providing a dish filled with top quality nutritious ingredients. As a result, competitors have never taken a strong position or any initiatives in providing customers with the best quality. One of the other strength of Chipotle is that it not only offers speedy and convivial service but it also provides a lively, restaurant ambiance. Also, another strength of Chipotle is its focused menu with an option to customize as per the customers’ liking, requires minimal employee training, enhances cross-training, escalates productivity, and increases
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.
Chipotle is a very successful company where I could develop my personal and work skills. Since I am in Canada, I got good references of Chipotle as a great workplace. Chipotle is a brand which values its associates. In addition, I am proud of being Mexican and I like so much sharing our culinary culture with others. Upon working in Chipotle, I can accomplish my goal that others know more about Mexico.
Introduction Chipotle is an American fast food focusing on Mexican flavor. Its main products are Mexican food, including Mexican rolls, soft/hard taco, rice. The ingredients are mostly fresh beef, chicken, pork, various vegetables, various beans, rice, In particular, the company put forward the slogan "Food with Integrity", which means that the company promises to obtain raw materials in the most friendly way for animals, environment and farmers, and use the most natural ingredients to ensure food safety. In particular, the company promises to try to feed animals, vegetables and milk without antibiotics naturally. At the same time, the company also promises to use locally produced ingredients as much as possible.
The moment I tried placing an order in Chipotle, my fantasy of American life shattered. After finding my three massive pieces of luggage from United Airlines’ baggage claim, I entered Chipotle to satisfy my starving stomach after a seventeen-hour flight. I waited around ten minutes in an excitement to try the renowned Chipotle burrito that everyone talked about. However, it took me less than ten seconds to decide to leave the place. I was trembling in frustration as I left the place.
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.
On the other hand, chipotle has many meat options as well, such as chicken, steak, carnitas and more. There are many options to explore, or you can always go back to your go-to burrito bowl, salad, burrito, tacos, and even a quesadilla burrito from their secret menu! Chipotle has many options to explore, like most other companies weather food or not their are many aspects of that business. Such as financing, health, worker compensation and more.
Then in 1998, McDonalds invested $360 million into Chipotle, allowing it to expand rapidly. The Chipotle Mexican Grill experience is an introduction to fast food 2.0, a new version of chain eateries that focus on quick, fresh, and hip food for us young people. Focusing on fresh ingredients, Chipotle’s ingredients are organic and their meat is not contaminated with chemicals, unlike most other fast food chains. When I step up to the counter, I notice a refrigerator filled with drinks. With a full liquor license, Chipotle also
Chipotle’s food costs were greatly increased due to instability of suppliers and rising food costs in the industry. Moreover, there was an 89.13% increase in additional income/ expense items in 2015. This can be explained by the impacts of negative publicity in regards to the food safety incidents that Chipotle
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.
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.
Executive Summary Taco Bell is a fast food restaurant chain in America based in California (Grant, 2006). This fast food restaurant specializes in serving burritos, nachos, quesadillas and tacos among other food items in their menu (Grant, 2006). It serves about 2 billion consumers every year in over 6,500 restaurants majority in the United States, where over 80% are operated and owned by independent franchisees in countries including Australia, United Arab Emirates, India, Mexico, Poland, Greece, Philippines, United Kingdom, and Chile among others (Grant, 2006). This fast food restaurant was founded by an individual known as Glen Bell (Walker, 2014). Tacos Bell had a franchise in Dubai shopping mall which was opened in November 2008 and closed
Throughout the last few decades, fast food companies have started popping out everywhere. With the