...Anyone who has walked a city block (or driven through a suburbia) in recent years knows that Chipotles have been springing up around the county for the last several years. In 1993, the first location opened in a local Dolly Madison ice cream shop. In 1999, they open the first location outside of Colorado, in Minneapolis and Columbus. They opened 67 new stores in the fourth quarter of 2011 and now have over 1430 locations worldwide. One of Chipotle’s strengths that definitely sets them apart from every other restaurant is the burrito. They specialize in the burrito. They don’t just make and serve burritos, they make it the way you want it and they make with whatever ingredients you want in your burrito. There are no other burritos, from any other restaurant that can compare to a chipotle burrito. People want their food the way they want it and that is plan for success because your customer gets what they want and they are willing to pay for it. Another reason Chipotle Mexican Grill has been able to grow exponentially over the past 20 years, is they have gone completely above and beyond any other chain restaurant when it comes to ingredients. In 1999 Steve Ells, the founder of Chipotle Mexican Grill learns how pigs are raised and makes the decision he wants to have naturally raised pigs produce the pork he puts in his burritos. Any other company is looking for the best price on pork and probably could care less how they are raised. Over the years customers have enjoyed...
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...Chipotle Mexican Grill was founded in 1993 by Chef Steve Ellis in Denver Colorado. The first location was actually a former Dolly Madison Ice Cream Shop near the University of Denver. Chef Steve Ellis attended the Culinary Institute of America in Hyde Park, New York and then became a line cook at Stars in San Francisco where he witnessed the popularity of taquerias and burritos. With a dream and an $85,000 loan from his father he opened the first location. Within one month he was selling over 1,000 burritos a day. In 1995 he opened two additional locations in Denver and by 1999 more in Columbus, Ohio and Minneapolis, Minnesota. In 1998 McDonald's made an investment in the company and by 2001 they had become Chipotle's largest investor. This allowed Chipotle to expand from 16 restaurants in 1998 to over 500 restaurants by 2005. As Chef Steve Ellis watched the company grow and expand he also observed how a most of the food in the United States is produced and processed. He witnessed the confinement of livestock and how they are injected with hormones to grow larger. With this, the company has adopted the philosophy, "Food with Integrity." This is a commitment to purchasing meat and produce from farmers dedicated to raising their livestock and produce using responsible and respectable practices. Chipotle Mexican Grill serves only natural raised pork and chicken. Over 85% of the beef they serve is naturally raised and 40% of the black beans they serve are certified organic. ...
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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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...Chipotle Mexican Grill Chipotle Mexican Grill was founded in 1993 by Steve Elis in Denver, Colorado with one store and an idea to make fast food better. From that one location, Steve was able to grow his company into a multinational organization that consists of 1230 restaurants throughout the United States, District of Columbia, Canada, and the United Kingdom. Chipotle’s reported revenues for the year of 2011 were $2.3 billion with a net income of $214.9 million. Starting in the 2007 to 2011, Chipotle Mexican Grill realized constant growth that exceeded 30% annually. How was Steve Elis and Chipotle Grill able to grow so rapidly in a market that has so much competition? Mr. Elis was keen to recognize a need in the fast food market that wasn’t being met. He believed that just because it was fast food that it doesn’t have to be done with low quality ingredients. Talking from his background on the culinary arts, Steve developed a best-cost strategy that would allow Chipotle to gain a competitive advantage over market leader, Taco Bell and create a whole new market in the fast food industry. As Steve crafted his strategic vision, he developed a set of core values that Chipotle would use as the foundation of their mission statement. Chipotle would provide higher-quality ingredients in conjunction to using improved cooking techniques, and all presented in a fine dining environment. This new product offering would allow customers to have access to superior quality food at reasonable...
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...Chipotle Mexican Grill It all began in 1993, where the first Chipotle was opened at a former Dolly Madison ice cream location in Colorado. Now there are more than 15000 restaurants open worldwide. Chipotle is a fast-food restaurant that serves Mexican food that is derived from all natural sources. Chipotle does not only keep the animals in mind, but also the farmers and the environment. It serves burritos, burrito bowls, chips, crispy tacos, soft tacos, and a variety of different vegetables and toppings. Chipotle, in my opinion revolutionized the way restaurants are structured now. The menu is not complicated and very simple, meaning it does not have a large variety of different dishes, but they give the customer the ability to customize and create each dish the way the customers like. Chipotle’s mission statement is as follows, “Food with integrity is our commitment to finding the very best ingredients raised with respect for the animals, the environment and the farmers.” This statement not only defines their mission, but also expresses their ethics. Their main goal is to provide food with integrity. What is food with integrity? Food with integrity comes from reliable sources that treat the food with the utmost care. In today’s environment, because of mass production, a lot of the food that is offered either comes from different types of places without the knowledge of what it has been through. For example, in the recent past, the problem with pink slime, which is an additive...
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...Chipotle Mexican Grill Inc. I. Analysis of the Problem Chipotle Mexican Grill Inc. has experienced abundant success as the fastest growing restaurant chain in the United States and has dominated a large share of the fast-casual Mexican market. Chipotle was ranked eighth in a list of fastest-growing chains in 2009 and third in 2010 based on increases in U.S. sales during that time period. In order to sustain growth and build on accelerated success, Chipotle Mexican Grill Inc. must implement a variety of strategy over the next five years to account for the new competitive market, new technologies, developments via the Internet and eMarketing, and new segmentation and positioning imperatives. Culinary artist and line cook Steve Ellis established Chipotle Mexican Grill Inc. in 1993 in Denver Colorado after noting the popularity of taquerias and other Tex Mex food items in the San Francisco area (wikipedia.com). In 1998, McDonald’s made an initial minority investment in the corporation and become its largest investor by 2001 (wikipedia.com). The investment from McDonald’s granted Chipotle the opportunity to quickly expand from 16 restaurants in 1998 to 837 locations in 2009 (wikipedia.com, slideshare.net). While Chipotle is one of the fastest growing restaurants in North America, the corporation faces competition from corporations such as Moe’s Southwest Grill, Qdoba Mexican Grill, Rubio’s Fresh Mexican Grill, Panchero’s Mexican Grill, and Baja Fresh (wikipedia.com). In...
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...STRAMAN K32 Calvin & Friends Adorable, Celine Del Rosario, Calvin Gallego, Vince Case 5: CHIPOTLE MEXICAN GRILL IN 2013 1. Does Chipotle Mexican Grill have any core competencies and, if so, what are they? ● Yes ● high quality but still affordable and quick ● fast casual restaurant that makes use of healthy ingredients ○ genetically modified ingredients are specified in their website ○ healthy amount of protein (40 50 grams) 2. What does a SWOT analysis reveal about the attractiveness of Chipotle Mexican Grill’s situation and future prospects? Strengths: ● Locally sourced ingredients ● Quick service ● Upscale dining compared to other fast foods Weakness: ● They have a limited selection of dishes Opportunities: ● They attract consumers who are conscious of food nutrition ● Online ordering because of technological advancement Threats: ● Price volatility and shortage of organically grown ingredients and natural meats 3. What are the primary and secondary components of Chipotle’s value chain? Primary: ● “Food with Integrity” Topquality, nutritious ingredients ● Quick orders with upscale dining ● Great customer service Secondary: ● Assembly line process, ● Use of billboard, and radio ads to market 4. What are the chief components of Chipotle’s strategy? Chief components of Chipotle’s strategy is to have small selection in their menu with quick orders, highquality food but low priced and good customer interaction. 5. Wh...
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...Chipotle Mexican Grill Incorporated Amber Haring, Christy Swyres, Christy Baze SU 2015 Section 9B Webster University William Cornwell June 22, 2015 Chipotle Mexican Grill 1. Do you think CMG is a successful company? The Chipotle mission statement: “Food with integrity is our commitment to finding the very best ingredients raised with respect for the animals, the environment and the farmers. It means serving the very best sustainable raised food possible with an eye to great taste, great nutrition and great value.” This is the context which Chipotle uses to determine their success. Chipotle has made a mission a corporate passion. Not only have they lead the food industry in sustainable food sourcing, they have expanded their philosophy to striving for LEED certification in their buildings. They pride themselves on providing the highest quality food at reasonable prices. Does moral success translate to financial success? Steve Ellis started a taco shop in Denver, CO with the intent of reinventing Mexican food. He didn’t want fast food, he wanted real food. Despite his nay-sayers stating no one would want to pay $5 for a burrito, no one wants to see an open kitchen and certainly no one will stand in line to have something assemble before them, by 1998 he had opened 16 restaurants and McDonald’s decided to back his endeavors. With McDonald’s investment, the company grew to 500 stores by 2005. By January 26, 2006, Chipotle made its IPO and in October 2006, McDonald’s...
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...Challenges Facing Chipotle Mexican Grill Over the years, Chipotle Mexican Grill has faced an attendant price-cost challenge as well as supply chain complications. The challenge has prevailed regardless of the Chipotle’s executives being steadily committed to continuing the food service with integrity. Further, the executives wanted the company to be at the front lane in a responding to mounting consumer concerns relating to food nutrition, the source of their food, the cultivation of fruits and vegetables, and the way animals meant for meat are reared. In spite of the challenge, the executives were focused on making the consumers perceive the company as a place that made use of high-quality ingredients in their menu . However, owing to the price-cost challenge, the management of the company expected that times would arise when high prices for specific organic products would force them to opt for conventional produce. The company targeted to gain a reputation for producing high-quality food at realistic prices while at the same time guarding profit margins. Further, the supply chain problems appeared as a result of strict standards on how animals should be rose which saw the company stop serving pork. Thus, Chipotle has had problems finding a substitute product that meets its guidelines. Notably, the supply chain...
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...RUNNING HEAD: IPO Paper IPO Paper - Chipotle Mexican Grill Advanced Managerial Finance– FI_516 – Fall_B Keller Graduate School of Management of DeVry University February 6, 2012 IPO Paper – Chipotle Mexican Grill Chipotle Mexican Grill, Inc. (Chipotle) is a chain of restaurants in the United States, Canada, and today around the world specializing in burritos and tacos, founded by Steve Ells in 1993 and based in Denver, Colorado. The name derives from "chipotle", the Mexican Spanish name for a smoked, dried jalapeño chili pepper. The restaurant is known for its large burritos, assembly line production and use of natural ingredients. The company has released a mission statement called “Food with Integrity”, which highlights its efforts in using organic ingredients, and serves more naturally raised meat than any other restaurant. Chipotle is one of the first chains of fast casual dining establishments. From 1998 to 2006, McDonald's Corporation owned a majority interest in Chipotle, from which it fully divested in 2006. The company currently has more than 1100 locations, with restaurants in 41 states, Washington, D.C., Toronto, Ontario, and London, England. Its net income in 2010 was $178 million, and it has a staff of over 26,500 employees. Overall revenue for Chipotle in 2004 was $470.7 million, a 130% increase from 2002 and a 49% increase from 2003, this was driven by new store openings and increased average sales. Average store sales grew from $1,056,000 for...
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...Individual Strategic Assignment: Chipotle Mexican Grill Royal Roads University BUSA506 – Strategy Instructor: Dr. Terry Powers Craig Westcott November 22, 2015 Word Count: 2,050 Steve Ells may not have invented the “fast-casual” sector, but since his founding of Chipotle Mexican Grill in 1993, he has shepherded the development of the restaurant chain which many in the industry might say best exemplifies it. Growing Chipotle from a single unit Denver-based operation to an international 1,230-unit chain which one Wall Street analyst called “the perfect stock,” Ells, a Culinary Institute of America graduate, set out with a vision “to change the way people think about and eat fast food.” When Chipotle announced the launch of a second restaurant concept, ShopHouse Southeast Asian Kitchen, putting to the test Ells’ belief that “the Chipotle model could work well with a variety of different cuisines,” it left many optimistic that lighting, perhaps, could strike twice and that ShopHouse might prove to be a second home run for both Ells and Chipotle. Core Competencies Chipotle Mexican Grill has two core competencies that can best be rolled up and described as “the Chipotle Experience,” namely the quality of their food, prepared as per Ells’ mantra of “slow food served fast,” and their setting being more upscale than a traditional fast food restaurant. Figure 1 – Core and Distinctive Competencies Figure 1 illustrates that these core competencies are arrived...
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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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...Company's Strategy Chipotle Mexican Grill's successful strategy is centered on their innovative menu and approach to food preparation. Chipotle would be considered to have a broad differentiation strategy because the company seeks to differentiate the company’s product and service from rivals in ways that appeal to a broad spectrum of buyers. Chipotle’s menu strategy is different than most fast-food restaurants and fine-dining establishments. Its menu strategy has been to keep it simple and do a few things exceptionally well. Serving a focused menu has let Chipotle focus on improving the efficiency and accuracy of the fast food ordering process and dish-creation process. It helps avoid selections that can complicate store operations and impair...
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...other two types of competitive strategy. The fifth category can be seen as a mix of all these strategies that is used wherever possible to get the maximum benefits for the industry, but it can be a little complex to implement effectively. When we look at the strategies that have been used by Chipotle Mexican Grill throughout, it mostly comes close to the differentiation approach. Chipotle is also a fast food chain that serves fast food that is freshly cooked for the customers shortly after the order being placed. There are many other big and small players in this category in the same market, such as McDonalds and Qdoba Mexican Grills etc., but Chipotle still remains the first choice among Mexican fast food lovers because Chipotles menu and food in that is different than that offered by the others. Chipotle strives to stay different from the others at root level by creating the favorite foodof its customers with a difference. That difference comes from the ingredients that are used and the environment they are served in. Chipotle acquires a large section of its raw material from organic resources, meat from farms where the animals, environment and the people involved are respected. Thus Chipotle becomes...
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...Chipotle Mexican Grill 2013 STRAMAN K32 Calvin & Friends Adorable, Celine Del Rosario, Calvin Gallego, Vince Case 5: CHIPOTLE MEXICAN GRILL IN 2013 1. Does Chipotle Mexican Grill have any core competencies and, if so, what are they? ● Yes ● high quality but still affordable and quick ● fast casual restaurant that makes use of healthy ingredients ○ genetically modified ingredients are specified in their website ○ healthy amount of protein (40 50 grams) 2. What does a SWOT analysis reveal about the attractiveness of Chipotle Mexican Grill’s situation and future prospects? Strengths: ● Locally sourced ingredients ● Quick service ● Upscale dining compared to other fast foods Weakness: ● They have a limited selection of dishes Opportunities: ● They attract consumers who are conscious of food nutrition ● Online ordering because of technological advancement Threats: ● Price volatility and shortage of organically grown ingredients and natural meats 3. What are the primary and secondary components of Chipotle’s value chain? Primary: ● “Food with Integrity” Topquality, nutritious ingredients ● Quick orders with upscale dining ● Great customer service Secondary: ● Assembly line process, ● Use of billboard, and radio ads to market 4. What are the chief components of Chipotle’s strategy? Chief components of Chipotle’s strategy is to have small selection in their menu with quick orders, highquality food but low priced and good...
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