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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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Chipotle Mexican Grill has been a very successful company since its inception in 1993. One of the biggest reasons for the company’s success is because of its marketing mix. Chipotle’s marketing mix of price, place and promotion will be analyzed to see which has provided success to Chipotle. This analysis will also help identify a marketing mix weakness of Chipotle.

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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

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For Chipotle, their suppliers are the key to the type of business that they wish to portray to their target market. As a GMO free food chain, it is integral for the food which they buy has been raised with the utmost care and integrity. As such, this gives the suppliers a strong hold on the bargaining power, as the number of suppliers of this type is rather limited. The threat of substitute products for Chipotle is relatively high, due to the fact that the number of options available to the average consumer are nearly endless. Whether that be choosing to eat at home, or one of the many other restaurants that are available.

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One of the most popular restaurants in the US, Chipotle. This company have been dominating the fast food industry in the whole process of how its prepared, and its quality is as the taste. After going to Chipotle yesterday I have decided to make a review, and the best way to review a restaurant is to judge it by the service, quality of the food and the atmosphere. Chipotle has a unique way of serving the food.

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CMG’s brand power, customer engagement, and loyalty was significantly proven when an increase in sales was experienced, regardless of the price premium. Objectives: According to the Chipotle Business Model: Redefining “Fast Food”, Chipotle had an objective to ensure profitability remained above the cost of their now organic ingredients. They aimed to achieve this through both staff and operational efficiencies. In terms of financial operations, Chipotle’s objectives include no long-term debt, growing organically, maintaining an operating margin of at least 10%, and exceeding the organic growth of occupant safety market.

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Then in 1998, McDonalds invested $360 million into Chipotle, allowing it to expand rapidly. The Chipotle Mexican Grill experience is an introduction to fast food 2.0, a new version of chain eateries that focus on quick, fresh, and hip food for us young people. Focusing on fresh ingredients, Chipotle’s ingredients are organic and their meat is not contaminated with chemicals, unlike most other fast food chains. When I step up to the counter, I notice a refrigerator filled with drinks. With a full liquor license, Chipotle also

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Out of the five generic competitive strategies the one that mostly resembles strategy of chipotle is the broad differentiation strategy. With their campaign of food with integrity their strategy reaches out to a customer base that is conscience of products that are high quality and this includes their meals. The strategy opens up to a broader customer base that values quality food coupled with reasonable prices. They are not in niche company even know they sell burritos and alike in their stores. Thinking on broader terms they are still a restaurant that is trying to be competitive in a market with such restaurants like McDonald’s or most selfless grill.

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The food industry has always been and will be a competitive market for businesses to work in. There are four types of restaurants that Chipotle must notice as competition in their market. There are fast service restaurants such as Taco Bell relying on fast service and cheap prices as their main advantage. Casual dining chains are the next form of competition, giving customers the option of having table service at a higher price. In every area Chipotle operates, there are also locally owned restaurants that supply a more personal and long lasting relationship with their customers.

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The fast food restaurants, McDonald's, and Chipotle, are the same in some ways, and different in others. I think both chains want to be, and are successful, but they also want the best for their customers. The difference between these two restaurants are how they go about achieving it. McDonalds wants the best for their customers, and achieves this by taking large amounts of time to create good tasting meals, but also using the best ingredients. In my opinion, Chipotle is putting in more effort to get even better ingredients, and fresher food than the ordinary fast food chains, such as McDonalds. Because Chipotle has so much pride in the outcomes of their food, and customers, they don’t get their animals from places where they are badly

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What makes Chipotle a leader in the industry is its ability to offer high quality products at a lower price than those of the competitors providing a competitive advantage and gaining market share. Threat of substitutes is high due to many different choices that customers have along with the fact that customers usually don’t have a strong loyalty for one restaurant and prefer variety when it comes to food. Bargaining power of suppliers poses a low threat in the industry but a high threat to Chipotle due to the fact that organic food suppliers can set their own prices due to low competition and high demand which will cause a problem for Chipotle in the long-run.

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Chipotle Strategic Profile and Case Analysis Purpose Chipotle Mexican Grill founded in 1993 by Steve Ells became known as the fast-casual dining in the restaurant industry (Hitt, Ireland, & Hoskisson, 2013). It was the first of its kind when Ells first opened his first restaurant and brought the idea of made-to-order burrito. The concept is so simple, and the consumer is in control of what ingredients goes into their burrito. “The immediate success from Ells’ first restaurant allowed him to repay the $80,000 loan that he borrowed from his father within a month of opening” (Hitt, Ireland, & Hoskisson, 2013, p. 71). Furthermore, this gave him the confidence to open his second restaurant in just two years.

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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.

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