ipl-logo

Chipotle Executive Summary

401 Words2 Pages

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).
Price
According to Chipotle’s commitment, which is “ Food with Integrity” and fast-casual food restaurant that provide greatest quality of ingredients, so the company charges customers at premium price for the foods. It is not the same as other fast-food restaurants where they heat up foods in the microwave. Their price strategy in long term is to maintain or lower its price with new suppliers and distribution channel (Chang, 2014).
Place …show more content…

It will not use intermediaries to purchase the ingredients. Chipotle will source suppliers that do not use antibiotics in meat and organic farmer. Therefore, Chipotle has limited of suppliers, but it will create more channel in near future. The company use large truck distribution system owned by McDonald’s who is a big factor that helps Chipotle expanded the market. Moreover, Chipotle use website and mobile application to generate more distribution channel for customers. The website and mobile application allow customers to know more on company history, company activities, menu, and so on. For example, Chipotle provide “Cultivate App” that has everything about Cultivate Festival such as schedule, map, food and drink, and activities. It allows customers can access and to know about Cultivate Festival (Chang,

Show More
Related
1046 Words | 5 Pages

Another form of media is their innovative media presence where they have depicted short videos that show the bad effects of other food suppliers. They use innovative media through television and YouTube to show that their sustainable sources of food are the best choice. Chipotle also uses print on their napkins, wrappers and drink cups to appeal to their market. Chipotle is also very well known for using promotions as a marketing message as well (Zureikat, 2014). Chipotle also uses public relation events like their Cultivate festival to support their market message to consumers.

Read More
1090 Words | 5 Pages

My high school graduation, state championship banquet, and late night food runs throughout high school were all catered by Chipotle. I’ve been involved in so many delightful conversations and learned so much about my friends and family over a hearty meal from this restaurant. The service is amazing, the atmosphere is great, but the food is what brings everyone together. All the food Chipotle offers mixes together perfectly and you can always finish your meal off with their queso. I cannot think of one time that queso was not smothered all over my burrito bowl since they started serving it.

Read More
682 Words | 3 Pages

It is laid out in a specific way that when you enter you follow the line to the counter and order from a cafeteria or assembly like line. Another primary component of theirs is their product selection. They make every order on how the customer tells them to while they are preparing it. A couple of other primary components of Chipotle are advertising, and customer service. Some of their secondary components include site selection, and hiring.

Read More
853 Words | 4 Pages

Bargaining Power of Suppliers Not like many other names in the fast food industry, Chipotle's bargaining power of suppliers is higher than most. If you take for instance Mcdonald’s or Taco Bell, their main focus is not how the cow was raised that supplies them with one dollar hamburgers or where the tomatoes were grown that they are larger

Read More
580 Words | 3 Pages

When you first walk into a Chipotle, a glass pane protects various amounts of different colorful ingredients. Chipotle’s goal is to “never stop working to improve each ingredient we prepare and serve.” This is why they show it off for their customers to see. The customer begins his or her meal by deciding between a burrito, taco, salad, or bowl. From there they choose a source of meat, such as steak, carnitas, chicken, barbacoa, and sofritas.

Read More
673 Words | 3 Pages

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.

Read More
205 Words | 1 Pages

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.

Read More
201 Words | 1 Pages

The value pricing strategy at Chipotle revolves heavily around the 'food with integrity' motto. Chipotle is able to command a pricing position that is higher than its fast food competitors because the consumers expect to pay more for high quality products. Chipotle puts effort into ensuring suppliers meet their rigorous standards and that is exactly what the health conscious customer wants. Everything from product packing and restaurant environment to marketing communication reinforces the superiority of Chipotle products. Chipotle products are priced higher than comparable products from traditional fast food chains like McDonald's, but priced lower than direct competitors like Qdoba.

Read More
685 Words | 3 Pages

Chipotle has potential market in South America, Europe, Asia and Africa. The food that Chipotle offers is different from many of the typical fast food restaurants. Chipotle’s use of organic ingredients will also attract customers from different countries and the restaurant also has different menus they can offer the customers. Also Chipotle will be successful in expanding its business because people are health conscious and the restaurant uses organic ingredients and it will be a plus for the company’s reputation in the global market.

Read More
1450 Words | 6 Pages

-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

Read More
495 Words | 2 Pages

They also donate their unsold foods. When walking into Chipotle you already know what you want and how you want it. Chipotle has taken that concept and lets the consumers customize their food to the way they want it. The do-it yourself style restaurant brings a lot of uniqueness in that aspect. Another reason they bring uniqueness is their ingredient integrity.

Read More
882 Words | 4 Pages

Companies like Chipotle require raw material to make the products they offer to their customers. This is where supplier power is created, if a company works with multiple suppliers then their suppliers have little or no power this is because it would be unexpansive to switch suppliers. When a company works with limited suppliers they have a higher supplier power because of how expensive it would cost them to switch supplier at this point the supplier also has the power to raise prices to capture some of the industry’s profits. Most restaurants get their supplies from different suppliers so for the most part supplier power is week within the industry, unless you are chipotle. Chipotle uses organic produce and free-range and antibiotic-free meats which requires them to work with a few selected suppliers which increases its supplier power.

Read More
1324 Words | 6 Pages

Since then, others have followed the same concept and consumers now have a variety of choices from Mexican, American, Italian, Mediterranean to Asian cuisines. Today, Chipotle is not just competing against competitors who offers the same ethnic food but also against competitors who provides food from other countries. Bargaining Power of Customers. Chipotle consumers have the upper hand in this situation because of the choices available to them. There are a wide variety of choices they can choose from at different price points.

Read More
1408 Words | 6 Pages

With these premium products as inputs, Chipotle maintains its status as an industry leader, and thus, should continue to expand throughout the U.S. and later into the international market. Despite Chipotle’s success in the U.S., it faces challenges to low brand awareness and competitors competing for its markets. However, by reviewing menu and developing marketing strategies through passive marketing strategies and developing to integrate their supply sources than before Chipotle can be as competitive as before and expand at the same

Read More
552 Words | 3 Pages

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.

Read More

More about Chipotle Executive Summary

Related Topics

Open Document