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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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