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Chipotle Mexican Grill Case Study

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Green Marketing: Chipotle Mexican Grill
Taylor Codomo
Communication 105

Chipotle Mexican Grill first opened its doors in Denver, Colorado in 1993, but CEO Steve Ells had been dreaming of opening his restaurant long before then. Ells began as a chef who studied French cuisine in culinary school. While observing customers at the local Mexican grill and after borrowing $85,000 from his father, Ells established Chipotle. The Mexican Grill now has over 1,300 restaurants including international locations in London, Paris, and Toronto.
The declining American economy of the last decade lead to value and time conscious consumers that held health and environment concerns about the food they eat. Every Halloween, Chipotle’s “Boorito” donates up to $1,000,000 …show more content…

But, if a company does not promote their ethical behaviors to the customers, it shows to have little impact on the customer’s willingness to pay more for a product. If a customer learned that the products they were consuming were produced unethically, the amount the customer is willing to pay lowers significantly. Chipotle has to communicate their sustainability activities in order to be rewarded for their ethical behavior, but only if their product is actually produced ethically. The likelihood that Chipotle actually went all-natural in sourcing their meat in the short amount of time they claimed to seems very impossible. Instead, they could have followed the same strategy Chick-fil-A did 14 years later by extending the allotted time to five years or maybe even longer. Chipotle set an unreasonable and unbelievable goal by changing the sourcing for their meat, which lead many people to become skeptical of their ethical behavior and could quite possibly have lead to the downfall of Chipotle in 2015 with their food safety incidents when people began to question how high of a priority the integrity of their food was to the

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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

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Chipotle is one of the most successful restaurant in the U.S. but every organization got some weakness and problems, today I would like to share with you what is the biggest chipotle’s problem ever that cost this restaurant a lot of money and lose trust from costumers and bad image in the media which is POISONING !! :- The fifth-biggest multistate sustenance harming flare-up of 2015 was the E. coli episode connected to nourishment served at Chipotle eateries in nine states. No less than 52 people were sickened, 20 of them were hospitalized. The episode was one of a few nourishment harming flare-ups connected to Chipotle this year including a Salmonella flare-up that sickened more than 60 individuals in Minnesota.

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Chipotle Mexican Grill: Steve Ells is the CO-CEO, founder, and Chairman of Chipotle Mexican Grill. Ells was born September 12, 1965, in Indiana, and Graduated from the University of Colorado at Boulder with a Bachelor degree in Art history. Chipotle Mexican Grill was founded July 13, 1993. The vision of Chipotle is to "demonstrate that food served fast didn't have to be a "fast-food" experience. We use high-quality raw ingredients, classic cooking methods and a distinctive interior design, and have friendly people to take care of each customer (Chipotle website, investors relations).

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From this observation, we increase understanding that Chipotle management was able to have an increased understanding of various changes in the economic policies and their impact on business environments. As a result, the company would ensure strategic ways in the supply chain and in offering customer services to provide more revenues hence more capital for investment decisions. It is through the various investment strategies that the company has been able to increase its market capitalization. From the Global perspective, Chipotle needs to understand that there has been an increase in globalization, and most of its competitors are operating domestically and abroad hence the need to study the economic environments and situations to make a viable investment decision and

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Company Description Chipotle Mexican Grill, Inc is a Delaware-founded corporation that manages and operates Chipotle Mexican Grill eateries throughout the country. There are 44 international Chipotle restaurants and 2,918 restaurants in the United States (Annual Report). Chipotle serves responsibly sourced, traditionally prepared, real cuisine with healthful ingredients in an effort to create a better world. Chipotle serves a customizable menu of burritos, burrito bowls, tacos, salads, and quesadillas. Chipotle Mexican Grill Inc. (CMG) is a market leader in the fast-casual dining sector and faces three main rivals (Segal, 2022).

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Chipotle Mexican Grill is an American restaurant chain in the fast-casual industry, offering fast food but also a relaxed dining experience with high quality ingredients. “Chipotle began with a simple philosophy: demonstrate that food served fast doesn’t have to be a traditional “fast-food” experience.” (Chipotle Annual Report) Over the years, the firm’s vision was guided by a belief called “Food with Integrity,” which highlights its efforts is using organic ingredients, and serving food sourced from sustainable farming practices – including ingredients that are grown or raised in humane ways with respect for the environment. Chipotle has a fairly large market chain of restaurants located primarily in the United States with over 1900 restaurants,

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Chipotle like any other restaurant have zoning laws and are fixed to restrictions and guidelines. These restrictions and regulations could have an impact and could more than likely change the process by which a company like Chipotle operates in a daily basis, especially when trying to introduce breakfast foods into their menu. Chipotle follows specific requirements of the California Transparency in Supply Chains Act of 2010 when working with other supply chains to get their ingredients. According to Chipotle they use the practice on four accounts, Verification where they periodically asses their supply chain where they will evaluate among other things or any relation to human trafficking and slavery as well as the misuse of any animals. Auditing where they routinely check on the suppliers facilities and make sure they are properly vetted through announced or unannounced inspections to make sure that the products are truly meeting the requirements and regulations set by Chipotle.

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However, closer examination reveals a dissonance between the brand's claims and its actual practices. Chipotle tactically promotes itself as a champion of health, emphasizing its commitment to fresh, nutritious ingredients and responsible sourcing. Similarly, the brand places a strong

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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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Abstract Chipotle Mexican Grill is a well-known company that deals with fast food and has made significant and distinctive progress compared to other companies in the fast food industry. The company not only prepares food in front of customers but also makes sure that food is made with integrity. The integrity is enhanced by finding, evaluating, and choosing the right ingredients, which are from animals, farmers, and the environment (chipotle.com). These are the principles that serve to direct and guide the organization and help position it as a leader in the industry.

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-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

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Any successful organization with profitable goods and/or services pose the risks and threats of new entrants from competitors. Chipotle is very vulnerable because of the mishaps that hit the organization in the last two years. Competitors will use this as a perfect opportunity to gain market share by offering food that are safe to eat. Threat of Substitute Products or Services. When Chipotle first introduce the fast-casual dining model, it was one of the first in the industry.

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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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Like most fast casual restaurants in the United States, Chipotles saw a 13% boost in sales in 2012. But has Chipotle really evolved from twenty-three years ago? Over the years, Chipotle has not changed the price of their food and have not introduced as many new goods as you would see at a typical fast food restaurant like McDonalds, Burger King, and Taco Bell. The latest food product that Chipotle has introduced is Sofritas. This tofu cuisine helps Chipotle reach out to another group of consumers, vegetarians.

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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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