ipl-logo

Business Analysis: Chipotle Mexican Grill

1771 Words8 Pages

Part A. INTRODUCTION.

Chipotle Mexican Grill is a popular restaurant chain that serves customers in the fast casual segment of their industry. The company prides itself on providing high quality food and utilizes ingredients that come from sustainable farms with respectable practices. It was founded by Steven Ells, a graduate of the Culinary Institute of America, who wanted to open a taco shop that puts a twist on traditional Mexican food. The vision he had for his restaurant wasn’t what many expected because numerous friends and family thought Mexican food was cheap, so he wouldn’t be able to get away with charging high prices. Ells contradicted those perceptions for the reason that his food goes beyond what other’s provides when it comes …show more content…

To reduce their carbon footprints, Chipotle invested in solar panel to harness solar energy to power their company. They partnered with a company help implement the panels and got Chipotle an LEED (Leadership in Energy and Environmental Design) certificate designating they designed and operate in an environmentally friendly building.

Political/Legal:

The political and legal matter that are applicable for the restaurant industry is the government polices of the U.S. Department of Agriculture (USDA). Chipotle has 22 different distribution centers in various geographic areas, which serves the Chipotle restaurants in those vicinities. The suppliers for these distribution centers were evaluated based on quality and ingredients need to meet the company’s mission. The USDA help restaurants like Chipotle by inspecting the food to ensure its quality and makes certain it is safe for the general public.

Overall Assessment …show more content…

The company networks with 25 organic farms that supply the fresh ingredients and naturally raise livestock to coincide with their mission to provide “Food with Integrity.” Organic agriculture is still in the beginning stages is the U.S. because the shift from traditional to organic farms fell due to the downturn of the economy. For that reason Chipotle supplier can drive prices because of the demand need for their products. However, Chipotle balances that power by not going full organic and natural in all of their ingredients. They source only 35 percent of their ingredients in order to not drive product price too high. They plan to slowly convert to full organic and natural ingredient by going in increments to slow adjust their business and customer to change.

Bargaining Power of Buyers: High

In the restaurant industry the customer has high power because of how saturated the market is. Although they have very little control over the price of products, they have low switching cost that allows them to seek the best price. With the numerous restaurants available to customer, it gives them the power to choose other places to eat besides Chipotle. Also, Mexican restaurants like Taco Bell and Qdoba gives customers a substitute for Chipotle’s food. Products in this industry are not ordered in large

Show More
Related
1046 Words | 5 Pages

Another form of media is their innovative media presence where they have depicted short videos that show the bad effects of other food suppliers. They use innovative media through television and YouTube to show that their sustainable sources of food are the best choice. Chipotle also uses print on their napkins, wrappers and drink cups to appeal to their market. Chipotle is also very well known for using promotions as a marketing message as well (Zureikat, 2014). Chipotle also uses public relation events like their Cultivate festival to support their market message to consumers.

Read More
1090 Words | 5 Pages

Chipotle Queso: The Key to Happiness Growing up I loved the flavors of Chipotle; the smoky meats, the charred peppers and the blend of delicious sides. One may ask why choose this advertisement for a company like Chipotle, because of the many persuasive images, textual messages, and vibrant visuals found in this mouthwatering piece. I consider this advertisement similar to an urgent announcement in which Chipotle is warning their customers to get excited that they finally have queso. Each and every day society craves food and as we all know, Chipotle competes with multiple restaurants in the mexican fast food field. My question is, what makes Chipotle stand out from the rest?

Read More
1068 Words | 5 Pages

Sondra Simpson’s article “Chipotle Mexican Grill Inc.: Strategy with a Higher Mission or Farmed and Dangerous?” alludes to portraying a controversy involving the popular Mexican fast food chain Chipotle and the agricultural industry, but it reads more as a testament to the restaurant’s environmental and marketing achievements. The introductory paragraphs lead us right into a brief explanation of the issue at hand, as well as Chipotle’s intentions and opposition. Simpson hooks her readers with inciting blog titles illustrating the overall feelings of Chipotle’s offended adversaries, such as, “Boycott Chipotle: My Farm is Not Dangerous” and “Chipotle Unnecessarily Tears Down Agriculture to Build a Brand” (qtd by Simpson p 38). These blog posts describe the agricultural industry’s reaction to Chipotle’s latest attempt at spreading their corporate message through a series of webisodes titled “Farmed and Dangerous.”

Read More
1573 Words | 7 Pages

Chipotle Burrito has 65,000 unique combinations with extraordinary ingredients. Chipotle is quick, simple, and enjoyable to make. Their experience for serving customers begins from start till the end of creating customers food. The company emphasizes on unique food culture by serving food made with quality ingredients from sustainable sources which is prepared by using latest pressure cookers (Chipotle strength) .

Read More
512 Words | 3 Pages

Researching a company is not that time consuming or confusing. If you want to research to learn more information about a company such as chipotle, find exactly what you want to know about and start searching! Chipotle is a good start to looking for healthier foods on the go. Like everything else the most healthy organic cooked meal can be found in your own home!

Read More
935 Words | 4 Pages

Yes, I thought to myself, I have arrived at Chipotle. In 1993, Steve Ells, a former sous chef at Stars in San Francisco, opened the first Chipotle at the University of Denver in Colorado. Chipotle’s mission was to give a customer fast food that was good, quick, and contained no chemicals or pesticides. The “fast food restaurant” took off and within 2 years, another Chipotle had been constructed.

Read More
430 Words | 2 Pages

help Chipotle offer high quality products made of the best, organic ingredients. Chipotle’s weaknesses are easy to copy limited menus that haven’t changed since the opening of the first restaurant and also the prices. When compared to some of their competitors such as Taco Bell, Chipotle is priced well above but still provides a higher quality food. Also purchasing organically grown food could be limited due to small number of suppliers and availability of specific foods. Chipotle’s main opportunities are expanding internationally, possibly targeting the emerging markets such as China or India while customizing their menus to the customers’ preference of the particular country.

Read More
2699 Words | 11 Pages

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.

Read More
1621 Words | 7 Pages

Chipotle has already expanded into two new restaurants, Shophouse Kitchen and Pizzeria Locale focusing on the use of whole ingredients with humane and sustainable farming. These restaurants center on the same objectives of Chipotle and leave room for further exploration into other types of cuisine. Chipotle can expand these two restaurants throughout the United States and stay focused on its mission statement by doing so. Chipotle also has the opportunity to increase its menu from burritos, tacos, bowls, and salads to incorporate more options. The last opportunity that Chipotle has is expanding its customer base to Generation Z and possibly finding ways to acquire more non-white consumers.

Read More
1450 Words | 6 Pages

Chipotle Mexican Grill was founded by Steve Ells in 1993 and had its first restaurant

Read More
1385 Words | 6 Pages

Sensitivity Analysis The sensitivity analysis focuses on examining how Chipotle’s valuation changes when some key inputs vary. Two of the most important inputs of the valuation are the weighted average cost of capital (WACC) and the perpetuity growth rate. In this thesis, it is assumed that Chipotle would have a WACC of 6.65% and a perpetuity growth rate of 2.84%, which would result in a share price of $443.90 for Chipotle.

Read More
729 Words | 3 Pages

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.

Read More
537 Words | 3 Pages

The Similarities and Differences of McDonald’s and Wendy’s Corporate America has taken a stranglehold on American nutrition and eating habits. McDonald’s food has dominance over the market with its cost effectiveness and availability. In contrast, Wendy’s has superior products with higher prices. While these fast-food giants have a massive place in America, they have their similarities and differences. Wendy’s and McDonald’s demonstrate these traits in cost, diversity, and quality.

Read More
444 Words | 2 Pages

This article was all about Oprah Winfrey who delivered a rallying cry to women and hope for "a new day" when receiving the Cecile B. DeMille Award at the 2018 Golden Globes. This year’s Golden Globes awards show was unlike any other. Celebrities wore all black in a show of solidarity for women who experience sexual harassment and assault. Award winners spoke about the “Me Too” moment. Throughout Oprah Winfrey's speech, she brought the crowd to its feet and spoke over thunderous applause, invoking her journey from a little girl watching Sidney Poitier win accolades to taking the stage to be honored herself.

Read More
552 Words | 3 Pages

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.

Read More

More about Business Analysis: Chipotle Mexican Grill

Related Topics

Open Document