...Chipotle M Marketing Plan Marketing 5341 Professor Besio December 9th, 2014 The 5 Cs Company Chipotle is a Mexican food chain dedicated to serving high quality “fast” food. The company was founded by Steve Ells in Denver Colorado in 1993, and has grown to over 1,000 stores by 2011. The initial growth of Chipotle was mainly attributed to McDonald’s investment in the company in 1999 for a 90% stake. With the involvement of McDonald’s, Chipotle was able to gain access to not only capital, but to the parent companies’ suppliers through their large distribution system. By 2003, Chipotle had opened 300 stores throughout the country, and had established a loyal customer base. Today, Chipotle remains dedicated to its vision of “Food with Integrity.” This represents their “commitment to finding the very best ingredients with respect for the animals, the environment, and the farmers.” In addition to promoting its high quality, fresh ingredients, Chipotle offers consumers a customizable menu with an open kitchen atmosphere and assembly line food preparation. This allows customers to obtain high quality food quickly and efficiently. Customers Chipotle has done an impeccable job of building customer loyalty. The company has gained this following mainly by word of mouth, considering the company has a small advertising budget of only $4.5 million, less than 1% of its revenue, as of 2011. Considering this small advertising expenditure, it is impressive that the company...
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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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...Chipotle Mexican Grill In this final paper, we will discuss the Chipotle company and its Customer Relationship Management. Chipotle Mexican Grill, Inc. is actually the chain of restaurants based in the United States but has now expanded into the United Kingdom, Canada, Germany and France. The mission statement of this company is Food with Integrity and this company deals with the usage of organic ingredients. This company is famous for its naturally raised meats and maintains that they are better than other restaurants. The customers are satisfied with the services and products of this company. In this case, we will explore the strategy of Chipotle’s Customer Relationship Management (CRM). Ethical Issues involved in Marketing to the Customer Like every other company, Chipotle also performs various activities to advertise its business in marketing. Marketing is not an easy process to perform as there are numerous factors that need consideration. If the marketing strategy of a company is well implemented, then the business products can be presented effectively to the company’s customers. According to the information discovered over the multiple papers written, I have come to understand that Chipotle has faced some issues in the marketing of its products to its customers. Following issues are considered by people against Chipotle’s advertisements (Liebelson, 2015). Does Chipotle’s support GMOs? This was the main question that was raised against Chipotle’s advertisement...
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...Written Assignment –Chipotle Marketing Plan International Marketing-BUS 403 February 11, 2015 Introduction: | Chipotle first opened in Denver in 1993 with a simple idea behind it, “food served fast didn’t have to be “fast-food” experience”, (Chipotle Mexican Grill, 2015). Prior to CEO Steve Ellis opening the restaurant chain, he himself was a chef. Since its creation, Chipotle has become a phenomenon in the restaurant industry and has experienced tremendous growth since it went public in 2006 with over 1,600 restaurants in Canada, United Kingdom, Germany, and France, with the majority located in the United States (Chipotle Mexican Grill, 2015). . The company focus is on using high-quality raw ingredients, (Chipotle Mexican Grill, 2015). Using fresh ingredients is the groundwork of the menu, but they also believe fresh is not enough any longer, (Chipotle Mexican Grill, 2015). Chipotle wants to know the sources for all of the ingredients in order to serve the freshest tasting food and to be mindful of the environmental and public impact of the business, (Chipotle Mexican Grill, 2015). Chipotle refers to this as “food with integrity”, (Chipotle Mexican Grill, 2015). Another thing that set’s Chipotle aside from the others in the industry is they practice classic cooking methods and the stores are of distinctive interiors that are found more in the world of fine-dining, not the typical fast-food, (Chipotle Mexican Grill, 2015). The Chipotle experience begins...
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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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...14 October 21 Chipotle Mexican Grill Caroline Burke, Mary Harris, Stuart Hooks, Jacob McCanless & William Vaughan A complete strategic analysis of the Chipotle restaurant chain from its founding in 1993 through the fiscal year 2012. Table of Contents Introduction 3 I. Core Competencies 3 II. SWOT Analysis 3 Internal Analysis: Strengths & Weaknesses External Analysis: Opportunities & Threats Future Prospects III. Value Chain Analysis 5 Primary Activities Support Activities IV. Generic Competitive Strategy 6 Chipotle’s Strategy for Success V. Financial & Operating Performance 6 VI. Analysis of Competition 6 Rival with Strongest Resources & Capabilities Chief Differences Between Chipotle’s & Moe’s Strategies Can Chipotle Compete Effectively Against Taco Bell? VII. Recommendations 7 VIII. Appendix 8 Works Cited 13 In 2012, an analyst on Wall Street referred to Chipotle Mexican Grill as “the perfect stock”, while another suggested it could become “the next McDonald’s” (Thompson C-114). Since it’s founding in 1993, Chipotle has utilized founder Steve Ells’ leadership and culinary expertise to execute its vision of “changing the way people think about and eat fast food” (Thompson, C-114). From the day Chipotle’s first restaurant opened its doors to now running 1230 restaurants in three countries, it has become a huge success and has caught the attention of leaders in the industry. One...
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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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...Fast-food,” in the thoughts of most Americans, is equal to a burger and fries–something quick. The implication of “fast-food” is processed, fatty food that is full of grease, additives, and preservatives. “This was not what Chipotle CEO Steve Ells intended when he opened up his first restaurant. Since the beginning in 1993”, Chipotle offered a new experience; “I just wanted to build a place where you could eat delicious food made of the finest ingredients quickly and affordably” (Ells). Steve Ells insisted on keeping Chipotles’ ingredients organic even with the instability of our economy. Chipotle is still rapidly expanding even though natural organic ingredients are costly. Finding a solution to keep the prices affordable, the business profitable, and the food organic is one of the challenges that Chipotle faces today. Chipotle Mexican Grill, Inc. is a “fast-food service restaurant” under restricted administration class. It was shaped in 1993 and opened up to the world in 2006. It has the biggest piece of the pie in the Mexican-sort sustenance fragment with a net wages of more than $126m in 2009 (Mergent on the web, 2010). The organization compasses in excess of 35 states and has in excess of 1000 restaurants over the United States. furthermore in parts of Columbia region, Canada and England. Chipotle's menu comprises of burritos, tacos, burrito dishes (a burrito without the tortilla), greens, and an assortment of additional items, for example guacamole, salsas and tortilla...
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...San-Francisco, Steve Ells began to open the first Chipotle store in 1993 at a former Dolly Madison ice cream location near University of Denver campus. The first Chipotle was a wide success. After two years since the first Chipotle opened, Steve added the second and third Chipotle locations. In 1996, Chipotle Denver area restaurant opened. Following the extraordinary successes, Chipotle was able to invite more outside investors to expand the scale of production to give way for the Chipotle’s openings outside of Colorado: Minneapolis, MN, Columbus and OH. After Steve visited some individual local farms, he found out pigs were raised in air-opening area as opposed to the way majority of pigs were raised. So he decided to dg pork and chicken naturally. Chipotle went public on New York Exchange in 2006. After that, Chipotle still kept focusing on providing the most authentic and healthy ingredients within each burrito. His vision is to serve 100% naturally raised beef in the near future. Moreover, Steve promoted to eliminate the antibiotics in ranching. From the year Chipotle opened until now, it has always been emphasizing on pursuing high-quality ingredients and cooking techniques to provide best eating experience for customers and fulfilling corporate social responsibilities. Driven by its main vision “Food with Integrity” -which is to serve the food made with ingredients that serve the best for animals, environments and farmers, Chipotle is still following it and making progress year...
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...Week 6: Communicate the Value Keller Graduate School of Management Professor Janell Harvey Marketing 522 February 11, 2016 Why are we developing a new IMC campaign? Problem: Chipotle a well know Mexican Grill, has provided millions of customers over the past 22 years with high-quality, fresh food in a fast paced environment; giving them an experience to remember. However, in the past 2 years we have experienced to E.coli outbreaks that have affected numerous customers. In 2015 55 people were infected, in 11 states and 21 of them were hospitalized. Then in 2016, another E.coli outbreak infected 5 people in 3 states in which 1 person were hospitalized. (CNBC.COM) Given the recent issue, Chipotle has lost trust in its customers, as well a decline in sales since the outbreaks. In order to restore trust and regain top contender status, there must be a way to attract our customers. What is our objective? The main objective for Chipotle is to regain our customers trust. There are loyal customers who remained loyal, during the outbreak; but there are just a many customers who retreated and favored place such as, Chick-fil-a; Burger King; Fire House Subs; McDonalds. We want those customers back! While we understand the road will not be easy, we are willing to do what it takes to once again serve food with integrity. Who is the target customer? Originally the target market was those young, health conscious customers who were looking for healthier and fresh fast food...
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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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...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., its interactive serving-line style of customer ordering, their restaurant layouts and similarity in the designs, and their fresh, healthy cooking ingredients. Recently launching stores in the Washington D.C. area, they are hoping to score another “home run” as they did with the Chipotle sensation. The question is, will they be able to use the...
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...Company Overview: Chipotle Mexican Grill, Inc. is a chain of restaurants in the United States, United Kingdom, Canada, France and Germany, specializing in burritos and tacos. Its name derives from chipotle, the Mexican Spanish name for a smoked and dried jalapeño chili pepper. Chipotle is one of the first chains of fast casual dining establishments. With more than 1400 locations in 43 U.S. states, Washington, D.C., three Canadian provinces, the United Kingdom, and France, Chipotle had a net income in 2012 of US$278 million and a staff of 37,310 employees. Mission Statement : Food with Integrity - This mission statement highlights its efforts in using organic ingredients, and serves more naturally raised meat than any other restaurant chain. Company's vision : Change the way people think about and eat fast food. History: Founder Steve Ells attended the Culinary Institute of America at New York and then went into the restaurant business working at Stars restaurant in San Francisco where he observed the popularity of tacos and burritos. Chioptle has approximately 750,000 customers per day. 1993 - Ells opened his first Chipotle in Denver, Colorado, in a former Dolly Madison Ice Cream Store near the University campus using an $85,000 loan from his father. They both figured that to stay in profit, they would need to sell 107 burritos per day. After a month, the store was selling over 1,000 burritos a day. The cash inflow was good. 1995 - Ells opened a...
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