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Chipotle Mexican Grill Essay

545 Words3 Pages

Case 8, Chipotle: Mexican Grill, Inc.: Food with Integrity and current news articles highlight specific challenges the company is facing. To begin, CMG’s announced that food costs were expected to increase in the near future. Following the announcement, the company’s stock fell by nearly 12%, which significantly decreased its stock price. This presented a major challenge for the company, because its food costs were already above average. As a result, Chipotle must continue to find innovative methods to operate its business. These methods must allow them serve products with quality ingredients at affordable prices. Its success is largely dependent on its "food with integrity" values. Another challenge for Chipotle is its two major competitors …show more content…

The first challenge CMG is facing is increased food costs. To overcome this challenge, the company should invest in more independently owned and operated farms. It 100% has to maintain its “food with integrity" values because its success is largely dependent them. The second challenge the company is facing is slow sales growth. With this, I recommend that Chipotle expands both in the United States and internationally. It needs to branch into untapped markets in order to gain more market share. The third issue for Chipotle is with its supply chain. It needs to find reliable and affordable supply chains with premium quality ingredients. It may be able to find this supplier in the international markets. The fourth challenge presented for Chipotle is its current reputation crisis. To overcome this challenge, I recommend that the company has a public apology. It needs to take credit for its wrong doing with a clear message to the media that states how the food was inflected, how many store were affected, and how they are handling the situation. This is the best recommendation I can give Chipotle because they must offer confidence that these problems will not occur again. In addition, the company needs to tighten controls on supplies and increasing testing procedures and safety regulations. In summation, these all the recommendations I can make to strengthen the company’s

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The fourth one is having friendly people take care of each customer. Lastly doing all of these with increasing awareness and respect for the environment, the use of organically grown fresh produce, and meats raised in a humane manner without hormones and antibiotics. The biggest strength Chipotle has is that its product is customizable. They have a kind of assembly line the customer can walk down and choose what

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In the near past, chipotle was owned by Mcdonald's, suddenly their CEO decided to separate from them due to the bad quality of the mcdonald's food industry. Chipotle over the years tried to make their food as the most fresh and best when it comes to the quality of the food and they have been succeeding in their plans. After finishing classes that day, I didnt have much time for eating lunch so my options were not a lot, which is why I chose chipotle. I had a couple of friends with me, and we ordered several orders to share. To try the best thing they had.

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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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" This shows that, Chipotle success comes from the use of classic cooking, distinctive food design, and fresh ingredients. Furthermore, Chipotle brought back the Mexican food to the American customers so that can people experience with different food that is not typical of their culture. Moreover, "Today, the chain boasts more than 1,550 units and holds a market capitalization of nearly $16.7 billion... Chipotle is not only the undisputed leader in the growing fast-casual space, but also an increasingly emulated brand (Jennings, L).

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Chipotle Mexican Grill STRENGTHS • Green technology • Positive bran image • Fresh and healthy food • Great customer service • Low advertising costs • Great financial performance in recent years WEAKNESSES • Lots of competition • High Price OPPORTUNITIES • Expansion of menu times • Ability to expand advertising costs • Ability to develop a market strategy to increase market share THREATS • Not a lot of menu options • High menu price • Competition is growing Chipotle Mexican Grill is a company that operates in the casual fast food Mexican restaurant market. They mainly operate in the United States but have expanded to Canada, the United Kingdom, France and Germany in recent years.

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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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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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The moment I tried placing an order in Chipotle, my fantasy of American life shattered. After finding my three massive pieces of luggage from United Airlines’ baggage claim, I entered Chipotle to satisfy my starving stomach after a seventeen-hour flight. I waited around ten minutes in an excitement to try the renowned Chipotle burrito that everyone talked about. However, it took me less than ten seconds to decide to leave the place. I was trembling in frustration as I left the place.

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With its mission statement of “Food with Integrity” Chipotle has seen success over the last decade. But with the increase of raw material input increasing, Competitors using pricing strategy to compete for its market share and the economic Chipotle is facing some though decision on if it should continue with its “Food with Integrity” which it can ill afford in these difficult times. In this paper, we will try address ways in which Chipotle can reposition its efforts to focus more on this unique offering without affecting their “Food with Integrity” Concept. By doing so, we believe that it can capture the important and growing segment of customers who are the health-conscious, organic-friendly consumer.

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And considering Chipotle’s past financial results, Chipotle’s 2016 financial performance, affected by the illness outbreak, was clearly an outlier. Hence, as 2016, some valuation multiples may not be suitable for the valuation of Chipotle. A clear example of inadequate valuation multiples could be the P/E ratio. Taking into account that Chipotle closed at $377.32 as 2016, it seems to be that even the most bearish investor would not believe that Chipotle would only be worth $20.68 per share, as suggested by the average of the P/E

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Chick-Fil-A vs Chipotle: Which one is better? Many people lately have been raving over Chipotle, and Chick Fil-a lately. I have always thought to myself what is so great about these two food chains. Many people like Chipotle, and then there a a lot of people that love Chick-Fil-A.

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Over the years, Chipotle has kept a lot of things constant. Why? Because they want their customers to come back with the same expectations and satisfaction. To evolve is the only way for a company to grow. Apparently that is all it takes to have fast casual restaurant.

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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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