...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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...Case Analysis Chipotle Chipotle, (pronounced chi-POAT-lay) is a homerun company with Steve Ells steering the ship as CEO. Whether he turns starboard or port, he has the company heading in the right direction. His vision is “to change the way people think about and eat fast food”. His strategy is based on five key elements: 1.) Serving a focused menu of burritos, tacos, burrito bowls (a burrito without the tortilla-which is quite amazing, I’ve had them several times, they are a very healthy and delightful tasting alternative to burritos), and salads. 2.) Using high-quality raw ingredients and classic cooking methods to create great tasting, reasonably priced dishes that were ready to be served to customers minutes after they were ordered. 3.) Creating an operationally efficient restaurant with an aesthetically pleasing and distinctive interior setting. 4.) Having friendly people take care of each customer. 5.) Doing all of this with increasing awareness and respect for the environment, the use of organically grown fresh produce, and meats raised in a humane manner without hormones and antibiotics. With these core competencies Chipotle has reached the top of its industry. They maintain a focused product (strategy 1), they maintain high quality products (2), they are efficient in operations (3), customer service is a priority (4), and they are environmentally friendly (5). These are strong core components that if maintained will produce a long lasting thriving company...
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...Tre Allen Chipotle Mexican Grill in 2012—Can It Hit a Second Home Run? 1. Yes. Chipotle's core competencies are: High products with the best raw materials. Healthier ingredients compared to other fast food establishments. Serve's alcohol. 2. The SWOT analysis of Chipotle, reveal that the business is very attractive. They have a positive brand image, with customer loyalty, offer online order and delivery, and all restaurants are company owned. The competition is very plentiful and intense, but Chipotle only trails Taco Bell. 3.The primary and secondary components of the value chain are: Primary: The quality raw materials add a lot of value to the final product, and better vegetables than competitors. Secondary: Assembly line process, the use of billboard, and radio ads to market. 4. The chief components of Chipotle's strategy are to increase total revenues, and higher acceptance rate in European countries. 5. Rivalry among competing firms, bargaining power of suppliers, and bargaining power of consumers, are competitive strategies discussed in chapter 5. 6. Moe's has unique name's for its food, such as; Homewrecker, and the Fat Sam. Moe's play music from dead musicians, and really focus on customer service. 7.The analysis of data of Chipotle's finances reveal that the company has seen a growth in profit each year for the last few years. Operating, and sales...
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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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...Case Analysis 2 Chipotle Executive Summary In 1993, a new take on fast food emerged out of the Denver area. The restaurant had a vision of locally sourced food with a unique way of ordering that revolutionized the industry and actually pioneered the idea of fast casual dining (2). Chipotle Mexican Grill was founded by Steve Ells and has carried the mission statement, “Food with Integrity”, since the genesis of the chain (2). After its founding, Chipotle has seen wild success and now has 1,700 locations, even some overseas (2). The chain grossed over $327 million and employs 45,000 people (2). It is a true success story and it even considered the most sustainable restaurant chain. They only use naturally raised meat and organic ingredients that meet their guidelines. Chipotle has grown exponentially since their founding, and that is a part of the problem. Even though Chipotle has had massive success, they are starting to run into some trouble with their sustainable model. The chain has become so big, it is hard for them to essentially sustain sustainability. Their organic ingredients and naturally raised meat are at the root of the dilemma. They are expensive and it is hard to maintain the flow and volume of organics and naturally raised meat that Chipotle constantly craves (4). It seems as though they have become too big for sustainability and it is very worrisome. Chipotle might just be the test subject to see if substantial sustainability is possible on a...
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...The entire investor relations department and I have been dedicated to give Chipotle Mexican Grill a great image across the globe. Because of our substantial collaboration as a team we want to provide you, with important updates related to the company outcomes. In the past years the company has been a successful business although recently, it has been going through some tough times. In these tough times, we need to observe carefully the share and stocks since they had declined because of the outbreaks that occurred throughout the nine states. Although the company's finances are still strong and the decline could be a good buying opportunity perhaps wish to wait through further news. Because you are owners of the Chipotle company, you play...
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...Chipotle 1. vision/mission and objectives? The mission and vision of chipotle is to change the fast food industry by providing High quality products with the best raw materials, healthy and friendly environment ingredients, and they also serve alcohol. 2. Corporate//Business strategy: Chipotle brings on outside investors and McDonald's enters the picture, purely as an investment partner. From then on, Chipotle starts to extend its market to outside of Colorado. In the period from 2001 to 2006, Chipotle expands from under 100 locations to 466, expanding into more than 30 states. And in 2008, McDonald's says goodbye to Chipotle, spinning off the company in an IPO on the NYSE (CMG). From then on, Chipotle has shown its significant growth and has its first home run in 2012. The company follows the strategy predicated on five elements: serving a focus menu, using high-quality ingredient and classic methods, creating operationally efficient restaurant with aesthetically pleasing and distinctive interior settings, taking good care of each customer and protect the environment. 3. Industry Analysis/ five forces models: —rivals: Chipotle has made a home run with the model of Mexican Grills. Compare to other rivals, it has higher competitive strengths and higher financial performance. But for the new model which is the ShopHouse, there are still some weaknesses as well as threats that are not fully concerned yet. After all, with some suitable changes in the strategy, the new...
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...Confucianism Religion in China Name Institution Course Date Confucianism comprises one of the religions of the world in China. The current China puts all efforts in a bid to see that the religion comes back and people start worshiping it. Confucianism termed as a religion, which used to exist in the 6th century BCE in China, and, which many Chinese loved to practice can come into practice again today by introducing it in schools as a subject. The religion finds its roots back after so many years not in practice. Many religious practices of the word have existed in china for so long and the Chinese respond to the traditions positively. The practices vary and the divergence of understanding increase. Confucianism named after the founder Confucius meant to unite the people of china. It got adopted as a rule to bring together the people of china. The exams set on Confucianism took only 24 to 72 hours and any male could sit for the exam. It existed from 600 to 1900 era. Under Confucianism, the humanists control the affair of the country and thus the lack of performance of the government becomes lack of performance of the Confucianism. Confucianism has helped revive businesses and lead to evolution of several achievements and thus the need for its revival. However, the idea to revive Confucianism has not gone quite well with some of the citizens in china and thus they have opted to resist it. The Christians do not see the form of religion as Godly and they decide to resist it no matter...
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...Problem Statement: Jose’s Mexican restaurant is a small yet popular spot. Lately they have been losing customers and profits due to service issues. In order to improve the restaurant, Jose’s Mexican Restaurant must provide service that is top-notch, in other words fast, efficient, great testing, convenient and heartwarming. What must the restaurant do in order to improve service? Areas for Consideration: [i]Quality at Jose's restaurant should be defined by service, value, reliability of the experience and overall customers' satisfaction. The quality of a product is defined as whether it fulfills its stated specifications. Customer satisfaction should be at the top priority for the restaurant. Customer satisfaction is the measurement of a product or service that meets or exceeds customer's expectations. Therefore, the restaurant should focus on its customers' needs and requirements, and strive to exceed their expectations. ` The factors that affect the quality of the service are conformance to specification, value, fitness for use, support and even psychological standard impression. Food should be delivered and served as to be what is promised on the menu. Also, the food should be cooked and prepared properly, to be fresh, clean, and to have exactly the ingredients and flavors that are ordered. Service staff should be neatly dressed and greet customers with a smile; personnel should be experienced and trained to accommodate the customer. Atmosphere is...
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...Between two cultures Growing up in a biracial culture seems to be a problem in this article. Armando Montano tries to use cooking as one of the keys to help him with his frustrations. In the ‘’The Unexpected Lessons of Mexican Food,’’ Montano uses food to make a bridge between Mexican and American culture. First, Montano uses food to make a bridge between Mexican and American culture when in the article he refers to himself as a ''Wexican'' (936). ''Wexican'' is a union between the words White and Mexican. According to the article, ''In the Mexican side of my family I was known as the white one’’ (936), and ''On the other side, my cousins called me a ‘Wexican,’ a white Mexican despite my similarly toned skin'' (936). He was not recognized for either even though he spoke Spanish and strongly identified with his Mexican heritage. Right after writing about his biracial identity, he makes the bridge when he tries to eliminate his frustrations by using Mexican and American products to cook, and he feels more comfortable because ''I could make a food that doesn’t have to be Mexican or American'' (936). In his introduction, Montano refers to ‘’the earthy smell of boiling pinto beans’’ as something that apparently both sides of his family liked (936). Later in life, his experience in Argentina with cooking Mexican food for his friends helped him realize and gain confidence in his identity as a Mexican- American (940). Second, talking about Eagle Pass, Texas, Montano uses food to make...
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...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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...In The News Chipotle Mexican Grill was first founded on July 13th 1993 in Denver, Colorado by Steve Ells. With his experiences in culinary school, his vision was to establish a restaurant that was simple and creative. Chipotle Mexican Grill became one of the fastest growing industries in the world. There are now a total of 1700 locations worldwide located in the United States, France, United Kingdom, Germany and Canada. Recently, there has been an E. coli outbreak with Chipotle restaurants which led to the closing of 43 stores. All cases of E. coli have been confirmed in the Washington and Oregon area. Many victims have filed lawsuits against Chipotle because they have become ill due to the bacteria. Anyone that have eaten at Chipotle between Oct. 14-23 have experienced vomiting, stomach cramps and bloody diarrhea. Health officials are urging anyone experiencing those symptoms to report to the hospital immediately because E. coli has a possibly of leading to death. The public is questioning Chipotle about how the E. coli outbreak even began. Many assumed that the products used in the chain restaurant have been unsanitary. The most common way to spread E. coli is through feces. Chipotle released a statement that they believe the source of the E. coli is from their vegetables and that they are doing their best to investigate the situation. This isn’t the first time that Chipotle faced food safety issues within their chain. In August, a Chipotle restaurant in California was temporary...
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...Code of Conduct Chipotle is committed to the highest standards of integrity in all of our activities and compliance with both the letter and spirit of the law. We expect that you will reflect these standards in your day-to-day dealings on our behalf. This Code of Conduct is for all employees, Officers, and all members of the Board of Directors. It is a guide to ethical behavior. Chipotle has an “open door” policy with respect to any concern relating to compliance with the Code of Conduct and other Company policies, and no person will be subject to disciplinary or other retaliatory action by raising any concern in good faith. Definition of the Code of Conduct The Code of Conduct includes this introductory section, "Integrity Statement," "Anti-Discrimination, Harassment and Sexual Harassment Policy," "It’s the Law,” and "Chipotle Confidential." Approval of any activity or matter not in compliance with this Code must be sought in advance and, unless otherwise provided for in the Code of Conduct, may be granted only by a Chief Executive Officer. In the case of members of the Board of Directors and Officers of Chipotle, approvals may be granted only by the Board of Directors or an appropriate Board committee. Compliance with the Code If you become aware of a breach or violation of this Code or any other Company policy, you should report the breach or violation in the manner described in this Code under “Chipotle Confidential.” Chipotle will do its best to protect the anonymity...
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........18 MISSION, DIRECTION AND OBJECTIVES....................20 Financial Objectives Marketing Objectives Social Objectives MARKETING STRATEGY..............................................21 MARKETING PROGRAMS............................................23 FINANCIAL PLANS.......................................................26 IMPLEMENTATION AND CONTROL..............................26 1. REFERENCE LIST..........................................................27 2. APPENDIX [A.1] Sales forecast [A.2] Budget marketing plan [A.3]Implementation plan 1. EXECUTIVE SUMMARY This report has commissioned to development a Marketing Plan for Chipotle Mexican Grill Inc.(CMG) and recommend strategies for the introduction of its products in China to achieve the objectives. The research draws attention to the fact that Asia fast food and Fast Casual Food grew by 13% and 8% respectively in the world. CMG belongs to Fast Casual Food sector....
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...I. Strategic Profile and Case Analysis Purpose: Chipotle Mexican Grill, Inc. is a chain of restaurants, which serve quality and taste food across United States, United Kingdom, Canada and France. The name Chipotle was derives from the Mexican Spanish name for a smoked and dried jalapeno chili. Steve Ells founded the company in July 13, 1993. Its headquarters is located in Denver, Colorado, USA. There are 1430 restaurants operating in 4 countries and have 37,310 employees as of 2012. It is one of the fastest growing U.S restaurants. Chipotle had a net income of $278 million in 2012. The Company’s restaurants serve menu of burritos, tacos, burrito bowls and salads. The main goal of Chipotle is to serve high quality, delicious food quickly with an experience that not only exceeded, but also redefined the fast food experiences. The always focus on sourcing the best possible ingredients, serving the tastiest food, and the most capable team. In past Chipotle only advertise on radio, billboards but recently they are using television and social media to advertise. They are also running various program, events and promotions giving out free food to potential customers. Chipotle has the quote " Food with Integrity". The " Food with Integrity" refers to the people, animals, environment and FWI facts. Food with Integrity is good in order to help out with the health, economic condition of the surrounding the restaurant. We can find the food use by the different food industries but where...
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