Chipotle Mexican Grill Swot Analysis

Chipotle Mexican Grill, Inc.

Steve Ells is the founder of Chipotle Mexican Grill, Inc. Ells was born September 12, 1965, in Indiana, and in 1988 he Graduated with an Art History degree from the University of Colorado at Boulder. He then found an interest in cooking, which motivated him to attend the Culinary Institute of America in Hyde Park, New York. As described in the article of International Directory of Company Histories "After graduating in 1990, he worked for two years at the high end Stars restaurant in San Francisco under the famed chef Jeremiah Tower. His inspiration for creating Chipotle." After many years of planning and organizing his business, he persuaded his father who was the current president of the pharmaceuticals firm

The SWOT analysis, demonstrate the most important things leading to the success of Chipotle Mexican Grill, Inc. In fact, Chipotle obtains their ingredients from sustainable sources, and that is their strength because it helps us to understand their competitive advantage over their competitors. According to the MarketLine "Chipotle serves food using naturally raised meat pork, beef, and chicken and dairy cattle...In 2014, the company bought more than 20 million pounds of local produce for its US restaurants, an increase of more than 33% from the previous year." Chipotle 's using naturally raised meat will let their customers know that their food has no chemicals or synthetic food additives that will put their health in danger or will develop a future disease. Chipotles strengths are more social responsibility because the fresh ingredients with high-quality and naturally raised animals enhance their brand image; this shows the public that their food is healthy. Another strength of Chipotle Mexican Grill, Inc., is their marketing program because, in the beginning, the company had a word-mouth publicity that consisted of the experience of their customers had on the traditional Mexican food. Today 's day as explained in the MarketLine articles about the Chipotle Mexican Grill, Inc., SWOT Analysis "As part of its promotion, the company is developing owned media, including new video and music programs, and a more visible event strategy that includes its cultivate

More importantly, the significant challenges facing this company is the treats of the new restaurant 's entrance to the fast-food industry and the domestically owned restaurants. Chipotle 's competitors such as Taco Bell and Chili 's restaurants can offer Mexican food at a lower cost, and they both have a quick service to their customers. However, locally restaurants can offer their customers the food they want because they have a chef who makes it. Another treat that Chipotle will face is the increase in labor cost because employees demand a higher salary. According to the MarketLine about Chipotle Mexican Grill, Inc. SWOT analysis "The federal minimum wage rate in the US, which remained at $5.15 per hour since 1998, increased to $5.85 per hour in 2008." However, in many states the minimum wage rates are higher because of the higher cost of living. This treat of the pay rate value affects many companies in the United States because people want higher salaries to meet their living costs. Chipotle 's competitors can offer their employees better wages and they can turnover to Chipotle. This treat will always be a significant expense