Case Analysis Of Chipotle

Introduction

The restaurant industry in the United States had annual sales of $ 631.8 billion and employs 12.9 million people in 2012. Even in times of recession there is little evidence that this industry has seen a decline especially in its fast food and quick service segment. But with a depressed economy with no immediate upward trend in the near future, majority of the customers indicated that they would either curtail their spending on eating or best maintain its current level which is certainly going to affect the future of many restaurants in the industry. Chipotle is part of the fast casual segment of the U.S industry with over 1,600 restaurants.

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

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. And achieve as a result, the grow for its brand, market share, and sales revenue.

Key Issues for Chipotle

Chipotle is quite strongly positioned fast casual segment but it is facing increasing competition from the quick service restaurants such as Taco Bell that are looking to compete for the market share. These quick service restaurants are trying to attract fast casual customers by providing similar products at a lower price which is a threat to

With these premium products as inputs, Chipotle maintains its status as an industry leader, and thus, should continue to expand throughout the U.S. and later into the international market. Despite Chipotle’s success in the U.S., it faces challenges to low brand awareness and competitors competing for its markets. However, by reviewing menu and developing marketing strategies through passive marketing strategies and developing to integrate their supply sources than before Chipotle can be as competitive as before and expand at the same