...Chipotle Analysis Abstract Chipotle Mexican Grill was founded by Chef Steve Ells in 1993, and today has restaurant in the United States, Canada, United Kingdom, Germany, and France. Initially Steve intended to open a fine dining restaurant after he graduated from the Culinary Institute of America, he did not have the start-up capital to do so. To build enough capital to fulfill his dream, Steve opened Chipotle Mexican Grill only to build enough cash to support his larger and more expensive plan for the fine dining restaurant. It wasn’t long before the restaurant experienced success and caught the attention of food service industry juggernaut McDonald’s Corporation. According to a May 2015 issue of Forbes magazine, Chipotle is valued well over twenty billion dollars (Parrish, 2007). Derived from the ancient Aztec Nahuati, the name Chipotle means smoked and dried chili pepper. The practice of cooking and serving naturally grown meat to their customers using organic ingredients supports the company motto of ‘Food with Integrity’. Chipotle Analysis Do you think CMG is a successful company? Defend your stance with research application. Chipotle Mexican Grill is most definitely a successful company. This is supported by the fact that it has grown from just one branch in Denver, Colorado into well over one thousand four hundred branches as of today in the United States. The company has opened sixteen branches just only in a span of five years. The company is capitalizing...
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...Running head: CASE STUDY 10 Chipotle Mexican Grill Case Analysis Kevin McDougall 6/14/2016 Professor Sarah Williams-Stokes Chipotle Mexican Grill Case Analysis Chipotle was founded by co-CEO and Chairman Steve Ells in 1993 with his first restaurant opening up in Denver. McDonald’s acquired an initial ownership stake in the company in 1998 and then controlling interest in early 2000. In 2005 McDonald’s decided to take the company public and as a result the entire company was disposed of by McDonald’s in October of 2006. Steve remained at the helm through it all and convinced other top executives that the company needed to continue on their foundational strategy of improving throughput of their daily operations. In 2007 Chipotle had total revenues of $1,085,782 and by 2013 the amount had increased to almost three times that ($3,214,591). Part of the success of Chipotle was that they had a very simple menu. The concept of not having complicated menus only recently changed when the company started testing a vegetarian menu item called Sofritas in only 7 restaurants in the San Francisco Bay area. Despite some temptations, breakfast has remained off the menu for now, but Steve has been toying with the idea. As part of their strategy, Chipotle promoted that their food was prepared fresh and made to order. The kitchen was visible to the serving line and setup in a way that customers could actually see their orders being made fresh...
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...Chipotle Mexican Grill MBA 680 – Case Study – 10.11.15 Tim Irwin Chipotle Mexican Grill MBA 680 – Case Study – 10.11.15 Tim Irwin 2015 2015 Chipotle Mexican Grill Steve Ells, founder of Chipotle, after graduating from the Culinary Institute of America, ended up in Denver where he cultivated his idea for Chipotle. Starting with one restaurant in 1993, to 1,595 units in 2014. (Thompson, 2014). His mission was simple, Food with Integrity. (Thompson, 2014). The concept was to “change the way people think about and eat fast food.” (Thompson, 2014). Since that time, the idea has been defined more specifically to read, “Food with integrity is our commitment serving the most delicious ingredients we can find, raised responsibly and prepared using classic cooking techniques.” (Chipotle, 2015). This idea was seen as innovative and forward thinking early on, when McDonalds invested in the business and eventually purchased a majority stake in the company. This provided the young start up the capital backing and cash infusion to continue to grow. When McDonalds decided to take Chipotle public through an IPO and then sell all of its interest, this provided Ells the opportunity to take the organization in whatever direction he desired. (Thompson, 2014). That direction was an aggressive and sustained growth strategy with plans to open several hundred domestic and international locations annually. This is ironic given that the huge success of Chipotle has its sights set on...
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...Chipotle Mexican Grill in 2012: Can It Hit a Second Home Run? To: Dr. Dulek From: Yunhan Weng Subject: Chipotle Case Study I. Executive Summary…………………………………………… Page 3 II. Recommendations………………………………………..……. Page 4 III. Porter’s Five Force Analysis…………………………………… Page 6 IV. SWOT Analysis…………………………...…………………… Page 8 V. The Five Generic Competitive Strategies……….……………... Page 12 VI. P.E.S.T Analyses………………………………………….…… Page 13 VII. Key Success Factors…………………………………………… Page 15 VIII. Driving Forces…………………………………………………. Page 16 I. Executive Summary: Chipotle is a young fast food company. In early 2012, Chipotle made its first home run. As a result, Chipotle is planning to start a new project called the “ShopHouse”. The CEO of Chipotle said, “I have always believed that the Chipotle model could work well with a variety of different cuisines”. Actually, ShopHouse predicated on much the same strategic principles as Chipotle Mexican Grill. However, it offered a different menu. Chipotle was established by Steve Ells in 1993, and the first Chipotle restaurant was built in Denver Colorado. The time Steve Ells opened his first restaurant, he believed that food served fast did not have to be low quality and that delicious food did not have to be expanse. Based on this concept, Chipotle Mexican Grill appeared to the world. In early 2000, McDonald acquired an initial ownership of Chipotle. What unexpected is that McDonald’s top management decided...
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...Individual Case Analysis Chipotle Mexican Grill September 30, 2015 1. According to the case study, Chipotle Mexican Grill does have core competencies. They are specialized in designing a quick-serve menu which appeals to customers and the reason why it works because when customers watching the menu they would know what they want to eat either burrito bowls, tacos or salads that helps solve with the problem of time consuming on food selection, thereby promotes operational efficiency. For the another core competencies, it should be skills in creating a restaurant layout and serving line design that efficient the food-ordering and dish-creation process so that more customers could be served. It is obviously to see that Chipotle’s operation strategy is to make things simple to customers with high food quality and good taste experience. 2 The SWOT analysis revealed the attractiveness of Chipotle Mexican Grill’s situation that Chipotle’s resource strengths and the good coordinates between these strengths and the company’s market opportunities make it more attractive on current situation and short-term and long term revenue and profits growth. And its weakness and external threats is not that significant enough to overwhelm its attractiveness of the company itself in the market...
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...…………………………….…….Key Problem/Issue of the Case…………………….…..……………AnalysisExternal Analysis……………………………….…………...Internal Analysis…………………………………………….Business-level strategy………………………..…………….Corporate-level strategy………………………..…………...Firm Performance…………………………….……………..Alternatives Available……………………………………………….Team Recommendations………………………………..…………...References…………………………………………………………...Appendices………………………………………………………….. | p.03p.04 p.07p.08p.10p.11p.12p.16p.18p.21p.22 | Executive Summary The Chipotle Mexican Grill restaurant chain has been exceptionally successful since its inception in the early 90s. The growth of this “fast-casual” dining phenomenon in its early years demanded the attention of many fast food industry giants all over the United States. One in particular, McDonald’s, even spent significant time holding ownership of a controlling interest of shares in the company, and lent their distribution and growth strategies to Chipotle. This injection of wisdom certainly attributed to their current level of accomplishment as a company because it afforded exponential acceleration in both domestic and international expansion of the brand. Given the overwhelming success of Chipotle to date, the company has decided to launch an additional fast-casual format restaurant designed around a Southeast Asian cuisine theme and named “The ShopHouse Kitchen”. The ShopHouse leverages the same basic, yet proven, principles of the Chipotle Mexican Grill in many aspects of its operations, e.g...
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...Case 6 Chipotle: the Challenges of integrity ryan ruud, Jennifer lee, garrett Borges, Monica Bethke, ron Bomkamp, preston Jensen arizona state University ‘Fresh is not enough anymore.’ Steve Ells Chipotle Co-CEO, Founder, and Chair Introduction Chipotle Mexican Grill (NYSE: CMG) in the USA has experienced great success satisfying the desire of consumers for a quick-serve restaurant that does not sacrifice quality for speed. Known in the food industry as a ‘fast-casual’ restaurant, Chipotle is part of the fastest growing segment of the restaurant industry.1 With annual revenues pushing US$2 billion and a stock price that doubled in 2010, Chipotle’s steady growth and strong financial statements make it highly attractive to investors (see Tables 1–3). Chipotle achieves customer satisfaction while maintaining a unique vision that has committed the company to ‘finding the very best ingredients raised with respect for the animals, the environment, and the farmers’.2 Coupled with a deceptively simple menu that allows for over 60 000 different burrito combinations alone, interactive ordering so customers can personalise their experience and meal, and a reasonable price, it’s no wonder Chipotle restaurants are full of happy customers and that the company has grown to nearly 1100 locations in only 17 years. History At an age when most of his peer group was still watching cartoons, Steve Ells was a dedicated fan of Julia Childs’ cooking show on US public broadcaster PBS...
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...Review of Chipotle Mexican Grill, Inc. Abstract For the past two decades, Chipotle Mexican Grill, Incorporated has been quick to rise in popularity as an international fast food restaurant that strives to differentiate themselves from the “typical” experience that one would expect at a short-order restaurant (Chipotle, 2015, para. 1). While Chipotle has been extremely successful through their use of locally grown, classic techniques, and high-quality ingredients (Chipotle, 2015, para. 2), the company has recently been faced with numerous issues with their company’s health practices and a slowing sales growth (Peterson, 2015, para. 3). Review of Chipotle Mexican Grill, Inc. Introduction Chipotle Mexican Grill, Inc. (Chipotle) is a fast-food restaurant that was founded by Steve Ells in 1993 in Denver, Colorado (Fundable, 2016, para. 1-6). According to Fundable, Ells has a degree from both the University of Colorado and the Culinary Institute of America (2016, para. 5). From there, Ells began work as a sous chef before he was able to secure a loan of $85,000 from his father to go towards the purchase of his first fast-food restaurant, Chipotle (Fundable, 2016, para. 1-4). Ells and his company experienced almost instance success. Chipotle grew so popular, that it wasn’t long before investors were looking to capitalize on Chipotle’s success, as well. After just three years of being open, Chipotle had grown to three stores and the well-known fast-food chain, McDonald’s...
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...| Business Research Case | Chipotle Mexican Grill | | Sarah AliMinas DimasKiran DosaniNada JazehLauren PeriRen Stoecklin | 6/7/2011 | | Table of Contents Introduction ……………...……………………………………………...3 Launch to Now: A Detailed Timeline ……………...………………...…3 Leaders and Leadership …………………….…………...……….……..4 Planning: Company Strategy, Mission, and Vision …...……………..…5 Evidence of PLOC4E2 …………………………………………..…...…6 Strategic Human Resource Management Policies and Philosophies ...…8 Types of Innovation and Evidence of Entrepreneurship …………...….10 Team Management and Dynamics ………………………………...…..12 Operations Management ………………………………………...…….13 Communication and Information Tech Management …………………14 Globalization Presence and Effects ……………………………...……16 Corporate Social Responsibility and Consciousness ……………...…..17 Conclusion ……………………………………………………………19 Figures …………………………………………………………...……20 Introduction Since its inception, Chipotle Mexican Grill has set itself apart from the rest of the fast food industry. Not only does Chipotle prepare food right in front of the customer, but the food put into the product is filled with “integrity”. Chipotle has established “Food with Integrity’ which is their commitment to finding the very best ingredients, raised with respect for animals, the environment and the farmers (chipotle...
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...Restaurants: Do Healthy Menus Mean Positive Financial Performance? A Case Study of Chipotle Mexican Grill An honors thesis presented to the Department of Accounting, University at Albany, State University of New York in partial fulfillment of the requirements for graduation from The Honors College. Cara N. Veneziano Research Advisor: Raymond K. Van Ness, Ph.D. May, 2013 Abstract The purpose of this study is to assess the consequences of offering healthy menus versus providing historically popular fast foods. Healthier foods are better for society and being able to understand how serving healthier menus will impact the financial performance of a company is crucial. I focus my attention on Chipotle Mexican Grill since it has been making a concerted effort to provide healthier foods. I have selected McDonald’s Corporation as a benchmark comparison. My specific investigative question is: Does a healthier menu translate into greater profits. My study begins with a comparison of Chipotle and McDonald’s meal options and ingredients in order to assess the overall health of their menus. This comparison revealed that Chipotle clearly had a healthier menu. Succeeding the menu comparisons, a financial analysis was performed on Chipotle and McDonald’s. The results of this study found that Chipotle, the healthier company, performed better in terms of Share Price, Stock Volatility, and Liquidity. The findings indicate that McDonald’s, the unhealthier firm, performed...
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...After reading the case study in depth, after the release of Chipotle Mexican Grill (CMG) Company’s third quarter 2012 results lean on the positive side, however CMG’s announcement of food cost increase in near future which cause a decrease in same store sales, and some slowdown in the stock market. In my well thought opinion I will review possible solution for CMG to keep their mission of serving good quality food and using sustainable farming practices, while trying to compete in the market with their competitors and controlling their cost of food. I feel that CMG’s commitment is focused around providing customer best ingredients raised with highly importance for animals, the environment and the farmers, which are core of their business. One of the reason CMG food cost is increasing is because Chipotle Mexican Grill is trying to supply better quality ingredients, and food to their customers. Also they are trying to meet their sustainability goals which can be expensive. I believe that major effect of high menu prices is reduction in sales, and profit margin for the company gets slimmer. As per case mention CMG chief marketing officer Mark Crumpacker first decision he made when was hired was to bring company’s advertising in house and made a decision not to advertise on TV. CMG has claimed their marketing policy is based on people experience the brand and that their main method of promotion is word-of-mouth publicity. In my opinion CMG needs to reevaluate their marketing...
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...2014 ANNUAL REPORT AND PROXY STATEMENT Chipot le Mexican Grill, Inc. 1 401Wynkoop Street, Suite 500 en er, 0 0 arch , 01 5 DEAR FELLOW SHAREHOLDERS: When we set as our mission to change the way people think about and eat fast food, we knew it was a big and dif cult, but ery important, goal n establishing this mission for hipotle, we belie ed that we had a food culture and a people culture that would allow us to create a new fast food model, and unit economics that would enable us to do this in a way that was pro table and that would pro ide outstanding returns to our shareholders hroughout , we ha e seen increasing e idence that our ision is becoming reality idence of hipotle s continued leadership and in uence comes in many forms, from our ongoing uest to make the ery best tasting food we can made with the ery best ingredients and prepared using classical cooking techni ues to the strengthening of our people culture, strengthening of consumer trends that support our business model, our in uence on the category and our performance relati e to the industry as a whole uring the year, in our pursuit for better ingredients we ser ed more esponsibly aised® meat (from animals raised in more humane ways and without the use of antibiotics or added hormones) than any other restaurant company We continued to use dairy products made with milk from pastured dairy cattle We remain committed to our program of using local and organically grown produce whene er possible nd we continued to make...
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...Introduction Founded in 1993, Chipotle Mexican Grill, Inc. has expanded from a local favorite consisting of a single location in Colorado to an international chain with over 1500 locations today. There are countless example of various corporations that experience growth trends similar to that of Chipotle’s, however, as a result of the rapid expansion and gains in sales, most of these corporations tend to neglect their corporate social responsibilities (CSR). Chipotle, on the other hand, does not fall susceptible to this trend. Through a complete examination of Chipotle’s CSR initiatives and activities, as well as detailed explanations of Chipotle’s contributions to the three “pillars” of sustainable development, one is able to see that Chipotle is a leader and an innovator in its industry regarding the corporate management of ethical dilemmas and moral responsibilities. A thorough comparison with a similar corporation in the same industry, Moe’s Southwest Grill, Inc., provides further evidence that Chipotle places immense value corporate transparency and quality morals in addition to being a genuinely ethical and responsible corporation. Following the major comparison are explanations of possible underlying motives and “market nudges” leading Chipotle to participate in particular CSR activities. Lastly, a discussion of government initiatives and potential upcoming regulations has been included to indicate the possible future direction of every firm’s corporate social responsibilities...
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...Case Study – The U.S. Economy from 2009 to Present JWI– 515 Jack Welch Management Institute At Strayer University JWI– 518 Since it's opening it's first establishment in Denver, Colorado in 1993, Chipotle Mexican Grill now has more than 1200 locations including restaurants in 41 states, Canada, and England. Considering it's success, it is unlikely that Chipotle would have earned a net income $215 million(1) last year without the strategic implementation of social media. Chipotle has employed social media as both a stand-alone means for promotion, as well as a smaller component to much larger campaigns. Among the successful applications are burrito give-aways, event promotion, “foil” art contests, and the most notable and successful “locally grown” campaign – which included a recent spot during the 2012 Grammy Awards. The “locally grown” campaign is indeed Chipotle's most involved social media promotion, including videos, contests, and conversations all surrounding the local farming movement. The campaign's official moniker is “Food with Integrity,” and according to the official website is a “commitment to finding the very best ingredients raised with respect for the animals, the environment and the farmers.”(2) “I think it's really important that people know where their food comes from” says Steve Ells, Founder and Chairman of Chipotle. The campaign's first successful venture was the “Boorito” event, where they encouraged customers to dress up as family farm-inspired...
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...Jessica Hansen, Leslie Hansen, Nuradin Ahmed, Shane Ottmar Case Study MGT 499 07/27/2014 MGT 499 Jessica Hansen, Leslie Hansen, Nuradin Ahmed, Shane Ottmar Case Study MGT 499 07/27/2014 MGT 499 Table of Contents Situational Analysis Page 2 History Fast Casual Food Industry Strategy Page 3 Chipotle Value Chain Competitive Landscape Page 4 SWOT Analysis Page 6 Conclusions of Chipotle’s situation Page 8 General Environment Analysis (General & Direct Environments) Identification of Strategic Issues Page 10 Evaluation and Examining strategic alternatives ...
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