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. Sometimes these organic products are even unavailable because of imbalanced supply and demand. Furthermore, the price of organic raw materials volatiles dramatically because it takes longer time to grow organic crops and raise no – hormone animals.
The second problem is the food related issue. Many customers are unaware of the benefits of eating organic products and Chipotle’s “Food With Integrity” mission. Therefore, Chipotle needs to do a
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First of all, they should start constructing its own farm and ranch in order to produce its own organically fresh ingredients. This will increase the availability of the ingredients and reduce the cost. Secondly, Chipotle should hold special events that promotes its “Food With Integrity” mission and advertise their brand more on social media.
In fact, in term of the first problem, Chipotle has continuously anticipated the factors affecting the availability and the price of the organic ingredients so that they can deal with unexpected situation in the future. For the second problem, they held “cultivate festivals” featuring organically healthy food to promote the message behind “Food With Integrity” mission and increase customer awareness of the brand.
The impact of the first decision is that Chipotle has efficiently managed the availability and the price of organic raw materials. In regard to the second decision, it has built a very strong emotional connection between customers and the brand as well as enhance the brand awareness among many other