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Chipotle Corporate Social Responsibility

951 Words4 Pages

Since 1993, when its first restaurant was opened in Denver, Colorado, Chipotle proved to its clients that high-quality food can be served fast. By using only fresh ingredients and adding no artificial flavors, Chipotle has managed to create trustful relations with its customers and even expanded its business to other countries.
Chipotle has opened its stores in few countries such as the UK, the US, Canada, Germany and France. It is now time for the corporation to follow the lead from other companies like Yum. Brands such as KFC and Taco Bell as well as McDonalds expand their footprint in the Asian market like Japan. For example, Chipotle operates less than 2,000 restaurants in only 5 countries, while McDonald's operates more than 35,000 restaurants …show more content…

By the end of 2012, the company was no longer financed by debt, so the company no longer has obligations to creditors. The company has available free cash flow to expand business and to improve stores and facilities. Meanwhile, the company does not distribute its earnings to shareholders as dividends, so it can fully utilize its earnings by expanding the company. Many equity analysts consider Chipotle as one of the best investments in the current volatile …show more content…

As a result, this could present a problem for the business model of Chipotle.
The company has to make sure to adjust its food to be appropriate to the Japanese taste, and keep the expense for the ingredients in the profitable margin while in Japan. This will not only benefit the company, but will ensure that the company enjoys a satisfactory relationship with Japanese society. Nevertheless, there are numerous restaurants in the same location where Chipotle is looking forward to relocate its operations, so there will be plenty of competition. This can only be countered when Chipotle adopts moderate pricing for its commodities (Scholes 14).
Usually, a domestic business strategy differs from the international business strategy by discrepancies in the marketing environment. However, as we look at some of the various difficulties that businesses are facing when trading internationally, we are mainly considering Chipotle in Japan as its new destiny for business (Kokemuller 16). So, international marketing is famous for the following

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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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