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Chipotle Executive Summary

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7 Effective Ways to recover Chipotle’s food safety lapse Chipotle has indeed paid the ultimate price for its food safety lapses. The management has made necessary steps to ensure they address identified health lapses. The costs that are expected to be associated with this effort will without any doubt pressure the earnings for the next few quarters (Chipotle Mexican Grill, Inc.: 2015). In the long run, the company will have the capability to bounce back. Other companies including McDonald’s and Jack in the Box have had to deal with more food-related severe incidents, and they have successfully bounced back. Likewise, Chipotle also has an opportunity also to amend its systems (Chipotle Mexican Grill, Inc.: 2015). Thus, following is the 7 different …show more content…

The company needs to concentrate on developing advertising and promotion campaigns for its proposed new restaurants: Chipotle has enjoyed a rapid growth in the recent years since it went public. In 2006 reports indicate the company had approximately 510 restaurants, but has quadrupled now. As a result, the firm has enjoyed measurable annual revenue and growth (Chipotle Mexican Grill, Inc.: 2015). In 2015 the company suffered food safety issues which affected the company revenues but was still able to post 10% revenue and 7% in growth (Chipotle Mexican Grill, Inc.: 2015). Therefore, despite the food issues setback, the company has immense potential to continue expanding into other states (Chipotle Mexican Grill, Inc.: 2015). 2. Buy back and re-advertised stocks in the market. Moreover, the company enjoys an excellent financial strength. Thus the company can continue doing business under the less-than-favourable conditions without having to pay substantial interests to the creditors. To further ensure the company financial stability, it is critical for the management to take advantage of the low price and also give a lit to the current earnings per unit …show more content…

Empower the small-scale suppliers: Moreover, many local suppliers do not have enough resources to track the latest food safety concerns efficiently. Therefore, the Chipotle management needs to devise ways that it can exploit to ensure the company former glory of its high quality and excellent produce returns. To ensure it empowers its small-scale suppliers, the company can provide it offers classes to all the farmers so that they can deliver the right quality products needed. 5. Re-train the employees: For a company to have a great comeback there is the need for all the employees to be retrained and ensure they have the right skills to provide foods that are appropriately handled. Due to the complexity of the supply chain, it becomes very difficult to monitor the quality standards and also the safety of the produce. Thus, employees will need solid training for all necessary procedure. Most importantly, retail stores need to avoid cross-contamination in the kitchen; it is proposed for all the foods to be prepared in different workstations. 6. Alternative: If the management sorts to continue getting its products from the small-scale farmers, then the company needs to organize a possible DNA testing where it can efficiently identify any harmful bacteria before they enter the supply

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Chipotle’s competitors have a difficult time competing against or imitating this competency because the times on Chipotle’s menu are tested and proven. Competitors don’t have the time or ability to test this concept or perfect their menu items. Chipotle on the other hand has been able to apply this limited menu style to the other ventures such as their two Shop House locations in Washington D.C. Another core competency, shown in Figure 1, is their dedication to high quality ingredients such as the organic cultivation of produce and naturally raised meat. Chipotle meets high customer expectations with their ‘Food with Integrity’ campaign.

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The original material of food cost of Chipotle operating costs is larger than other fast food restaurants, although this is a measure they have to implement to ensure freshness and health of food they sold, this is the reason for their high food prices. Even if the majority of customers are willing to pay for the higher cost of health food, Chipotle still should find out some effective ways to reduce the cost of their food in the future. Here are some suggestions: firstly,negotiate with the original suppliers to establish a long-term and stronger cooperative relationship to achieve a purpose of a certain reduction in the purchase price. Secondly, take advantage of suppliers’ promotional discounts. Attempt to make communications and collaborations

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The dedication, devotion, time, and loyalty Chipotle takes to provide its customers with top quality nutritious ingredients every day is praiseworthy. Even though supply-demand has often occurred resulting into unavailability of locally grown products, Chipotle has managed and continues providing a dish filled with top quality nutritious ingredients. As a result, competitors have never taken a strong position or any initiatives in providing customers with the best quality. One of the other strength of Chipotle is that it not only offers speedy and convivial service but it also provides a lively, restaurant ambiance. Also, another strength of Chipotle is its focused menu with an option to customize as per the customers’ liking, requires minimal employee training, enhances cross-training, escalates productivity, and increases

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CRegardless of Chipotles strengths, the company has encountered some weaknesses as well. In respect to future growth, Chipotle has seen some growth and are profitable, but there are some crucial factors that could be a warning sign of possible challenges. Chipotles principal weakness is its limited menu choices; there are basically customizable items on the menu that customers can order. Chipotle will have to offer more options to customers or increase marketing strategies; the main goal is to gain and retain customer confidence. Additionally, highly priced food items are another concern for Chipotle.

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Chipotle Mexican Grill is one of the leading company in the Mexican - style fast-food industry thanks to its competitive advantages. However, there are several problems that Chipotle has encountered. The first problem is the supply of organic ingredients. The availability of organic products is constrained due to the growth of purchasing by consumers and chefs at fine – dining restaurants.

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To sustain the high-quality food, the costs of raw materials will go up, and Chipotle will increase their prices by small increments if the situation is necessary. On the other aspect,

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This visionary thinking, restaurant design, creative menu, and business model has led to Chipotle accomplishing great things, such as growing from a single restaurant to over 1,400 in just 20 years, and serving more naturally-raised meat than any other restaurant

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Although you can make a ton of different combinations in your order at chipotle, they really do not have a widespread menu. This makes it tough for families with picky eaters to come and have a meal. This is similar to most of the fast Mexican food industry. But with other fast food restaurants offering many different options on their menu, this could put chipotle in the back burner.

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Chipotle appeals to a diverse customer base throughout the country and beyond. We offer our customers a wide range of flavors from a concentrated selection of, top-quality ingredients that are expertly prepared by a passionate team of extraordinary people. Our focus on our unique people and food cultures has created an impressive demand for a restaurant experience that is redefining fast food for the better,” Chipotle Mexican Grill (2014). Chipotle has managed to open over 1500 restaurants with increased sales, since its inception in

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Ultimately, Chipotle decided to shut down all 43 restaurants that were affected in order for them to be sanitized and investigated. The company also created new health protocols. Chipotle hired “industry-leading experts to assess the safety risks of every ingredient on its menu ‘with an eye toward establishing the highest standards for safety.’” The company also held safety meetings at every restaurant location on February 8, 2016 to teach employees about the new protocols, which would include “high-resolution DNA-based testing of many ingredients,” “changes to food preparation and handling practices,” “new internal training on safety standards for all workers,” and “paid sick leave.” Chipotle also decided to spend millions of dollars to ensure that the farms from which they were receiving their meat and produce were following safety guidelines during the processing of their food.

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Customers can choose from various fillings such as chicken, steak, barbacoa, carnitas, tofu, and vegetables. They also have a variety of additional toppings such as rice beans, salsa, guacamole, cheese, and lettuce, which are also customizable to the customers preferences. This straightforward but adaptable menu accommodates a wide range of dietary choices and restrictions by offering a multitude of meal combinations. Since Chipotle’s founding, it has grown significantly over the past few years. By 2025, Chipotle will have over 3,000 outlets, mostly in the US, but also in Canada, France, Germany, the UK, and other countries.

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The following paper will examine the organizational structure of the Chipotle organization, diagnose problems,

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At the end of the case in 2014, Chipotle’s stock price trended steadily upward, reaching an all-time high of $611 in March 2014. Since the end of the case, Chipotle has definitely made a couple of strategic moves. To exploit the current surge of consumers who request healthier, natural food, Chipotle has chosen to go into the quick easygoing Asian food market with another chain named ShopHouse Southeast Asian Kitchen, in the future alluded to as ShopHouse. Remaining consistent with its situation as an engaged differentiator, Chipotle will work ShopHouse under a similar logic that has made company so effective and successful by offering viable gourmet ingredients at affordable rates.1 However, considering few strategic moves by Chipotle,

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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

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The firm is aesthetically pleasing, efficient and they have a distinctive interior. Chipotles serving line layout helps with their efficiency. This type of layout allows them to serve as many as two hundred customers and hour. Another factor that increases the brands value is the customization of food products it provides to consumers. Customers have the ability to add as many ingredients as they would like at a consistent price point, this added value increases the customer’s willingness to pay (www.fastcasual.com).

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