Introduction
Chipotle Mexican Grill was founded in 1993 by Steve Ells in Denver, Colorado. The founder attended the Culinary Institute of America in Hyde Park, New York. He had some experience as a line cook in Jeremiah Tower at Stars, San Francisco. Steve Ells opened the first Chipotle near the University of Denver campus with a loan of $85,000 from his father. Chipotle has approximately 1783 outlets in the world as stated in the 2014 annual report. Their menu offers Mexican food such as burritos, fajitas and tacos. The idea behind this restaurant was to show the customers that food served fast did not necessarily have to be of 'fast food' quality. The company uses high quality raw ingredients, classic cooking techniques and distinctive interior
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By identifying the CSFs, the company may create a common point of reference to help guide and measure the success of a business.
Cost:- Companies constantly face pressure to reduce the cost of the products and services they sell. The company must know the cost of producing the good and what consumers are willing to pay for it. Managers can calculate a target cost for the product by subtracting the operating income per unit of the product, that the company wishes to earn from the target price. In order to achieve the target cost, managers may eliminate some activities such as reduce costs from research and development to customer service. Global competition further increases pressure on companies to reduce costs.
Chipotle offers very reasonable prices for its high quality product. An average customer check for a meal is about $8.50. This company is able to provide food at a lower cost mainly because of a fast preparation time of the food and few employees used in the
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Chipotle uses high quality raw ingredients, classic cooking methods, a very distinctive interior design of their outlets and friendly employees to take care of their customers. The company claims to serve meats which are raised without the use of non therapeutic antibiotics or added hormones and are in accordance with the criteria they established in order to improve sustainability and promote animal welfare. They brand their meats as "Responsibly Raised."
Timeliness:- Time mainly is based on two types, namely new product development time and customer response time. The former emphasizes on how the increasing pace of technological innovation has led to products having a shorter life cycle and more rapid introduction of new products. The latter refers to the speed at which organizations respond to the customers. A reduced delivery time is always beneficial for the company as it increases customer satisfaction. So the companies should avoid bottlenecks which may be a big reason for
Chipotle is extremely vulnerable to supply shortages. Considering the fact that their brand is built on the quality of its ingredients this is a problem. Their brand, cost premiums and a large component of their value proposition is built on and contingent on providing a product requiring inputs that the do not control ( Chipotle Mexican Grill, Inc. SWOT Analysis) . Irregularities in the work
Chipotle kept their menu simple, but still managed to provide over 65,000 customization options, and customer’s can choose to order online or through a mobile app. The company was incredible successful with recognitions from Wall Street Journal and Fast Company
Chipotle and Qdoba each have their similarities and differences. Dating back to the 1990s, Chipotle and Qdoba were both created within a few years of each other. Each restaurant classifies itself as a “Mexican grill” with an assembly line style of ordering. Though Chipotle and Qdoba have the same restaurant set up, they differ in price, product choices, and advertising. The prices between Chipotle’s and Qdoba’s meals differ.
Strategic Message Planner: Chili’s Advertising Goal “Food like home brought close to you,” the goal is to appeal to the target audience, students that make up a large portion of the populace, by comparing Chili’s hot and diverse options to home-like food they may have previously consumed. As well as families in the surrounding areas, there are select choices for eating out in the surrounding area. Client: Key Facts Chili’s was founded in 1975 by Larry Lavine in Texas, currently, it is operated by Brinker International and is considered a casual American dining experience.
Both McDonalds and Chipotle provide fast food services. However, while they share some similarities in terms of belonging to the food industry, utilizing the concept of time to woo their customers, and emphasize on healthy alternatives, the two differ in their business practices and model, types of food that they offer, the efficiency, and extent that they have managed to influence and shape the perception of the consumers. Both McDonalds and Chipotle are restaurant chains that aim to provide fast food services to individuals on the go and highly emphasize timeliness of service as its major selling point. Besides both restaurants being in the food industry, the two restaurants emphasize the speed of their services as a selling point. As a quick service restaurant, McDonalds aims at reducing the time that its customers take before they are served.
Recalling that the first Chipotle was opening in 1993, Denver Co. Steve Ells did thought that Chipotle may become that popular. And in 1995 he decides opens a second store, and then a third store. In 2000, he stared researching about farmers and about natural raise pork.
These methods must allow them serve products with quality ingredients at affordable prices. Its success is largely dependent on its "food with integrity" values. Another challenge for Chipotle is its two major competitors
All over the world the delicious burrito has been advertised. With the new breakfast burrito from Taco Bell and the varieties of them you can make from Chipotle it is hard to think of how people can live without it. Although they’re many ways to make a burrito the enticing factor that the burrito has is that every burrito you have is unique in its own way. Either if you prefer to put hot sauce on yours or like to put shredded cheese there is something about the food that invites people to make this traditional Mexican oriented food their own masterpiece.
And considering Chipotle’s past financial results, Chipotle’s 2016 financial performance, affected by the illness outbreak, was clearly an outlier. Hence, as 2016, some valuation multiples may not be suitable for the valuation of Chipotle. A clear example of inadequate valuation multiples could be the P/E ratio. Taking into account that Chipotle closed at $377.32 as 2016, it seems to be that even the most bearish investor would not believe that Chipotle would only be worth $20.68 per share, as suggested by the average of the P/E
Chick-Fil-A vs Chipotle: Which one is better? Many people lately have been raving over Chipotle, and Chick Fil-a lately. I have always thought to myself what is so great about these two food chains. Many people like Chipotle, and then there a a lot of people that love Chick-Fil-A.
Like most fast casual restaurants in the United States, Chipotles saw a 13% boost in sales in 2012. But has Chipotle really evolved from twenty-three years ago? Over the years, Chipotle has not changed the price of their food and have not introduced as many new goods as you would see at a typical fast food restaurant like McDonalds, Burger King, and Taco Bell. The latest food product that Chipotle has introduced is Sofritas. This tofu cuisine helps Chipotle reach out to another group of consumers, vegetarians.
Mexico and the U.S are two different countries which have many differences and similarities in food habits. Food habits tell plenty about a country and how the people living there spend their time during a daily routine. Food habits tell about a person 's personality and their lifestyle. This topic will show the U.S and Mexico’s table etiquette, type and origin of food, eating out, time for meals, and attitudes around the table.
Chipotle is in the fast casual industry where competition is extremely intense since there are so many different dining options. An industry like fast casual restaurants has a very high growth rate therefore there is not just one company that has the market cornered. What sets the restaurants apart is not cost but product differentiation; they position themselves in the market with their slogan of Food with Integrity. Since restaurants in the fast casual industry are priced fairly in the same range Chipotle uses different product features to set themselves apart from the others (parature.com). The first value driver in Chipotle’s differentiation strategy is the product quality; they utilize local farmers who are conscience of the environment.
Abstract Chipotle Mexican Grill is a well-known company that deals with fast food and has made significant and distinctive progress compared to other companies in the fast food industry. The company not only prepares food in front of customers but also makes sure that food is made with integrity. The integrity is enhanced by finding, evaluating, and choosing the right ingredients, which are from animals, farmers, and the environment (chipotle.com). These are the principles that serve to direct and guide the organization and help position it as a leader in the industry.
With its mission statement of “Food with Integrity” Chipotle has seen success over the last decade. But with the increase of raw material input increasing, Competitors using pricing strategy to compete for its market share and the economic Chipotle is facing some though decision on if it should continue with its “Food with Integrity” which it can ill afford in these difficult times. In this paper, we will try address ways in which Chipotle can reposition its efforts to focus more on this unique offering without affecting their “Food with Integrity” Concept. By doing so, we believe that it can capture the important and growing segment of customers who are the health-conscious, organic-friendly consumer.