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Chipotle Mexican Grill External Analysis

1911 Words8 Pages

A. INTRODUCTION

Chipotle Mexican Grill is a fast growing restaurant chain in the fast-casual dining industry. Fast-casual dining is currently the smallest segment of the restaurant industry with only holding 4% of the market (Hitt, Ireland, & Hoskisson, 2015). However, it is the quickest growing segment and Chipotle has managed to successfully capitalize on that growth. Since its founding in 1993 and going public in 2006, Chipotle has managed to hold onto a steady customer base and make profits due to their goal of offering inexpensive quick food without compromising on their high-quality sustainable ingredients. Even though the restaurant industry has a lot of competition, Chipotle has found a stronghold against its competitors. They have managed to continually attract investors through their fast growth and large profit margins, and consumers through their low prices and food with integrity mission.

B. EXTERNAL ENVIORNMENT: STEEP ANALYSIS

Social

There are two main social trends that have a direct impact on Chipotle. The main social impact on types of products is the consumer focus on sustainable products. Everything served at Chipotle is fresh and sustainable. Offering fresh ingredients is positive to …show more content…

Consumers are demanding businesses be more socially and environmentally concerned and because they are using their disposable income they have power over what they prefer to spend their money on (Paiz, et al., 2011). These consumer pressures have made Chipotle follow these socially environmental practices and only purchase ingredients from specific suppliers. This greatly affects Chipotle’s bottom line because sustainable ingredients can often be more expensive. The public’s desire for sustainable ingredients, while also paying low prices gives buyers a moderate level of power over

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