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Chipotle Essay

808 Words4 Pages

Industry Overview

National and regional fast-casual, quick service, and casual dining restaurant chains are a profitable industry and have maintained a steady growth since 2010. More specific, fast-casual food chains are in competition with each other and must continually try to differentiate its products from other restaurants in the industry.
While looking at the industry, there are a few factors that effect the decisions that many restaurants make. Sociocultural, environmental, and regulatory factors are a few of the most significant forces that make up the macro-environment of fast casual dining. More importantly, sociocultural norms such as healthy eating trends pose threats as well as opportunities for the restaurant business with vegetarian and organic production of food becoming more of customer interests.
Out of the five competitive pressures that firms in the industry must identify, rival firms and buyer power have the most significant effect on the fast casual industry with substitute products, such as other fast food restaurants, creating a moderate issue for the competition. Rival firms in …show more content…

Expanding into new markets such as Southeast Asian Kitchen gives Chipotle a way to increase market share of fast-casual dining outside of the original “Mexican” food market. More specifically, Chipotle seems to be a strength leader of its competition by at least 1.0 weighted score. Key success factors include quick/efficient production, geographic coverage, customer service, brand awareness/reputation, and cost containment. One reason for the leadership advantage is Chipotle’s quick and efficient production while maintaining high quality This is something that competitors have a hard time imitating. Its small lack in geographic coverage and market scope are still

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Chipotle has a major opportunity to increase its number of customers and most importantly its profits. Unfortunately, even though this fast food franchise has the capabilities of fulfilling the rise in demand, they still have to take into consideration all of the factors that can still hurt the company. As listed above in the analysis, Chipotle has to continue to improve their food and services to continue to bring in more customers. Their opportunity can also become a weakness in the near or far future, the current trend is to eat healthy, consumers may get over this fad and may not worry as much on the amount of calories they consume.

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The higher the market share- the stronger the company is, allowing it to operate on a bigger scale. Chipotle invested in new technologies that offer mobile ordering and delivery to the car. This helped contribute to the market share increase. Due to the success and growth of Chipotle, the company opened up 43 new restaurants, including 38 new locations (Earnings Release). This information from the press release is important when comparing Chipotle to its competitors because it allows us to judge and compare the market change.

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Strengths: Chipotle uses many organic, natural, and fresh ingredients throughout their menu. This is a strength because many more people are checking the nutrition value of their food before consuming it and seeing this would satisfy the costumer because they know they are getting, not only a good tasting meal, but a meal that is also good for them. This is very good for Chipotle's business because, as described in chapter 5, they are using a best-cost provider strategy since they are using high quality ingredients while still keeping their low prices. Although the strengths don't stop there; Chipotle has spent a great amount of money trying to promote themselves and really get out there. All the money they spent doing so really paid off since they are very well known since

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This provides a valuable tool for molding the kind of success-orientated culture at Chipotle. Instead of wasting time and resources while recruiting new members, they save time, capital, and resources by rewarding and promoting from within. This leads to maximization of profit, reduction of turnover, and improved employee satisfaction and performance through retained knowledge, skills, and experience of long-term employees. The net effect of these communication and management methodologies is to ensure that services offered to customers are of the highest possible quality. For example, 84% of the customers spend less than five minutes waiting to be served.

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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.

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Chipotle is a fast casual dining restaurant. It was opened in 1993 by Steve Ells. This paper will discuss the quick success of the restaurant and the sudden fall of the company as well. It will look at the growth statistics of the company, its investors, what caused this company to plummet so quickly, and what could have been done differently to avoid this outcome. Steve Ells loved to cook at an early age.

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Over the years, there have developed a unique interest in the different kinds of dishes from different areas of the world that have given rise to restaurants being classified basing on their specialties. These specialties range from Mexican food, Italian food to Chinese foods and consequently the growth and development of Mexican restaurants, Chinese restaurants, Italians restaurants and many others. All these types of restaurants offer a lot more than just the meals

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