Chipotle Mexican Grill Essay

In 1993, Chipotle Mexican Grill (CMG) was founded by Steve Ells and was initially introduced to the restaurant market in Denver, Colorado. Chipotle had a mission to significantly impact and alter the restaurant industry, specifically the fast-casual segment. Its growth occurred quite swiftly and its success caught the attention of the global corporation McDonald’s, who ended up investing more than $350 million into CMG, Inc. and profiting $1.5 billion in return. According to Exhibit 5, “Revenue and Operating Market”, from the year 2004 to 2013, profitability continuously grew from nearly $500 million to more than $3,000 million USD. In 2013 alone, revenue increased by 17.7%.

Exhibit 7, “CMG Growth Comparison”, shows that in terms of revenue

Strategic Posture

CMG’s current objectives, strategies, and policies are not directly stated in the case. They are more so implied from performance and overall strategic direction of the incorporation over the past 20 years, with an emphasis on more recent

CMG began purchasing naturally raised pork, chicken, beef, and organically grown produce. By 2002, naturally raised chicken was added to the menu. Five years later in 2007, all of their beef products were naturally raised and nearly half of the beans (40%) grown organically. In 2010, all pork products followed this healthier trend and in 2014 all chicken product also met this criterion. Due to Chipotle’s shift in strategic direction, they needed to raise their meat products by $1. CMG’s brand power, customer engagement, and loyalty was significantly proven when an increase in sales was experienced, regardless of the price premium.

Objectives: According to the Chipotle Business Model: Redefining “Fast Food”, Chipotle had an objective to ensure profitability remained above the cost of their now organic ingredients. They aimed to achieve this through both staff and operational efficiencies. In terms of financial operations, Chipotle’s objectives include no long-term debt, growing organically, maintaining an operating margin of at least 10%, and exceeding the organic growth of occupant safety market. These objectives are all consistent with each other, the mission, and with the internal and external