Chipotle Mexican Grill’s Value Chain
Primary Components
Food with integrity
Chipotle is only focusing to use organically grown local produce, organic beans, organic dairy products and meats from animals that are the highest possible animal welfare standards. Chipotle is provided with simple, fresh food without artificial flavors or fillers. They are just genuine raw ingredients and their individual, delectable flavors. Chipotle cares deeply about where their ingredients come from. While industrial farming practices have evolved to maximize profits and production, it makes an extra effort to partner with farmers, ranchers, and other suppliers whose practices emphasize quality and responsibility. Chipotle collects and chooses their raw materials from small farms come in many sizes where the suppliers share many of the great values. Chipotle Mexican Grill as a place that used high-quality, “better for you” ingredients in its dishes.
Serving order quickly and excellent customer’s service
One of Chipotle’s biggest innovations had been creating the ability to have a customer’s order ready quickly. Chipotle’s service line is working as fast as it ever has. Chipotle workers set up the line so that everything is read before the peak hour rush gets in. Once customers order the food, the employees prepare and assemble the order behind the counter so that the customers don’t need to wait to get the order too long. The target is at least 200 and up to 300 customers per hour in order to keep the numbers of customers waiting in line at the peak hours. The management teams believe that while customers returned because of the great-tasting food they also liked their orders served fast without having a “fast-food” experience.
Secondary component
Chipotle Mexican Grill spends big amount of budget in advertising and marketing. It costs totaled $21 million in 2009, $26.2 million in 2010, $31.9 million in 2011 and $35 million in 2012 individually by print, outdoor, transit, theater, radio, and online ads. In February 2012, Chipotle Mexican Grill ran its first-ever national TV commercial during the broadcast of the Grammy Awards. Chipotle had been testing use of more “owned media,” including new video and music programs, and a more visible event strategy that included the launch of the company’s first festival of food, music, and ideas, cultivate Chicago, and participation in community events in markets where the company had restaurants or was opening new restaurants. Chipotle’s marketing efforts together with the considerable word-of-mouth publicity from customers telling others about their favorable experiences at Chipotle restaurants, had enabled the company to build good brand awareness among consumers with relatively low advertising expenditures to compete with its competitors.