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Chipotle Case Study Food With Integrity

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Recommended: Disadvantages of fast food to environment

“Food with integrity” is the program that united supply chain and corporate culture, in the name of changing the way “people think about and eat fast food”. This mentality is a culture that is consistent with their policies and programs. Examples of these are found in the social responsibility Chipotle carries when they make new efforts/ or deals to sustain safety for the environment and secure “high quality, natural, organic, and local ingredients.”
After starting their programs for more organic and natural foods in 2008, CMG took it a bit further and made changes to the way they built and designed their locations and make them more environmentally friendly. ‘Chipotle's conclusive position in the quality of performance, adaptability to changing …show more content…

The sustainability aspect is present in the strong relationship the company has with its supply chain. The case test states that the goal of the company was and still is to “...deliver delicious food that was transparent, safe for the environment, and responsible to the animals slaughtered for meat…”. In addition, the company is adamant about increasing its local sourcing. This approach allows for less fossil fuel consumption in the transport of goods, increase in local farmer’s sales and a better taste of the food by using peak-season …show more content…

We see the company's goals being easily achieved with a steady growth in terms of revenue and operating margins from 2004 to 2013. The growth rate was 24.41% which was 6 times higher than the industry rate of 4.3%. Despite the recession and many of the industry counterparts struggling to recover from the 2008 recession, CMG’s net income remarkably reached 8.47%, partially due to CMG’s ability to maintain low operating costs. In fact, the operating margin for Chipotle was less than half of the industry average. The high variable costs lie in the company’s mission to provide a “Food with Integrity”, which meant high-cost, high-quality ingredients. Therefore, Chipotle found was to cut costs and expenses

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