Each competitor has their own unique strategies that helped them achieve their successes. Since Chipotle recently had some issues with foodborne illnesses, their competitors may have benefited from this and their stocks may have risen since the incident. Nevertheless, Chipotle is still one of the top competitors in its
Chipotle is currently categorized as Mexican-style fast casual dining. What Chipotle differs from fast food industry is the highest quality food and a more appealing environment. Meals have a typically higher price than at a fast food restaurant, but food is prepared using healthier fresh ingredients. Their main competitions that are in the same industry as Chipotle Mexican-style dining are Qdoba Restaurant Corporation; Fresh Enterprises, LLC; Mswg, LLC; and Rubio's Coastal Grill.
Chipotle Mexican Grill is a fast, casual restaurant that is mainly known for its bowls and large burritos and became popular by advertising on all sorts of platforms like music platforms and others that may reach a younger audience. The company made its initial public offering in January 2006. The company’s main objective is “ensuring that better food is accessible to everyone” (Chipotle Website). The founder of Chipotle sought to change people’s perspectives on fast-food and wanted to change the experience as well which led to the success and increasing popularity of the restaurant.
The reason for such a phenomenon may be that Chipotle are much regarded as business-casual restaurants, and customers prefer to have meals in Chipotle by themselves or with their classmates and colleagues instead of with families. To expand their customer portfolio, Chipotle can try to attract customers who have families, providing services or meal options for children. On the business side, Chipotle corporate with Tapingo, a mobile commerce application that provides ordering and delivering services with college students. So that Chipotle can expand their markets and have more potential customers. In terms of pricing, Chipotle charges a premium price.
Chipotle give experience to customer from entrance of the restaurant until they order their foods. The company allows people customize their own foods. Chipotle make its company differentiate from other by using high quality of ingredients and serving freshest foods. It focuses on people who love delicious healthy foods. Moreover, the company always promotes its products by giving free burrito on some holiday and the first day of grand opening restaurant (Chang, 2014).
Bargaining power of buyers is high as there are many substitutes readily available and preferences tend to change over time. Rivalry amongst competitors is strong since there are so many different fast food restaurants, sit-down restaurants, stores like WholeFoods Market etc available to the consumers with similar or completely different menus. Chipotle’s main competitors are Qdoba, Moe’s Southwest Grill and Taco Bell which all offer Mexican food, mostly organic with the same menus as Chipotle targeting the same
Chipotle is a leading company in the growing fast-casual dining market. Established by C.E.O Steve Ells in Denver, Colorado in 1993, Chipotle soon made an impression on its customers by providing food with high-quality raw ingredients and classic cooking methods to create great tasting, reasonably priced dishes that are readily served to customer’s within minutes after being ordered. The food Chipotle offers is simple and includes burritos, burrito bowls, tacos and salads, plus soft drink, fruit drinks, beer, and milk. However, customers can customize their own options including different meats, beans, rice and vegetables. They keep an assembly line setup in all of their restaurants which helps cut down on time/resources when helping customers.
Chipotle is in the fast casual segment of the industry, they offer portable convenient food focused on fresh healthful ingredients and customizable dishes. Their price points are typically lower than full service dining. This segment is one of the fastest growing in the industry since consumers are gradually shifting focus to more health conscious meal choices. Given that, Chipotle has some intense rivalry in the market. Their biggest competitors are Taco Bell and Qdoba, since they both serve Mexican food in a fast casual manner.
Founded in 1993, Chipotle Mexican Grill is a restaurant chain that is known mostly for its burritos and burrito bowls. The restaurant also serves tacos, salads, kids meals, and
Chipotle is a very successful company where I could develop my personal and work skills. Since I am in Canada, I got good references of Chipotle as a great workplace. Chipotle is a brand which values its associates. In addition, I am proud of being Mexican and I like so much sharing our culinary culture with others. Upon working in Chipotle, I can accomplish my goal that others know more about Mexico.
Since Steve Ells founded Chipotle Mexican Grill in 1993, the fast casual dining industry has undergone a transformation. In order to examine Chipotle’s business model, this essay will address important issues like the company’s operations, products, size, market presence, competitors, and the unique qualities that set it apart from the rest. Starting off, Chipotle is a fast casual restaurant specializing in Mexican cuisine. Unlike traditional fast food chains, Chipotle focuses on providing high quality, prepared food quickly and efficiently, blending the convenience of fast food with the quality and ambiance of a casual dining experience. The company’s motto is, “Food with Integrity” this reflects their dedication to using organic and local
-Low threat of new entrant ( High input costs ) Threats -Input costs are increasing and fluctuating (beef price is rising and some ingredients such as wheat price is fluctuating) -All the restaurant’s segments are competitors and are not only competing at their own segment but also with other segments (e.g. Chipotle Competes with meals prepared at home as well as frozen or packaged food items available in supermarkets) -People reduce eating out spending economics recession and this might affect Chipotle -Competitor’s pricing strategy – competitors such as Taco Bell are offering similar products with reduced prices to compete for Chipotle’s market share -High threat of substitute fast food ( variety of choices for consumers) Situational Analysis for Chipotle Alternative Actions and Evaluation of Alternatives Alternatives Pros Cons 1. Differentiation Strategy by “ Food with Integrity” ( current Strategy) -Differentiate from competitors -Get more attraction because of unique style of serving -Rising food prices -Need for more produce as raw material inputs -Low awareness than other brand due to their marketing style of loyalty and word of mouth
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
Over the years, Chipotle has kept a lot of things constant. Why? Because they want their customers to come back with the same expectations and satisfaction. To evolve is the only way for a company to grow. Apparently that is all it takes to have fast casual restaurant.
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.
