Synopsis of the Case Chipotle Mexican Grille, Inc. is a fast-food based company that was founded by Steve Ells in 1993. CMG experienced significant growth; becoming a leading distributor of sustainable food in America. CMG offers their consumers “Food with Integrity”. They offer a limited number of items on their menu but include a large variety of extras such as beans, salads, and guacamole so their customers can create unique and exciting food selections each time they visit, which enhances their overall Chipotle experience (Wheelen, Hunger, Hoffman, & Bamford, 2018 p. 7-2). CMG has overcome many obstacles in their effort to provide fresh ingredients from sustainable resources, while selling it for a reasonable price. CMG created strong …show more content…
Their steady success has proven their ability to do just that; in 21 years, they have grown over 1600 restaurants in the United States and 11 internationally (7-1). Their mission was to change the way people think about and eat fast food. They slowly began their products with organically/naturally raised food sources – their pork, beef, and chicken. They have charge more, but instead of a decline in popularity the opposite happened. Their brand power, customer engagement, and loyalty were present when they were forced to raise their prices to serve naturally raised pork but were rewarded when sales rose in support of their goals. Their customers want to buy responsibly raised food even if it’s a premium …show more content…
CMG’s business model and strategy were designed to fulfill the expectations of the fast-casual market segment, and they have surpassed all expectations. They compete with three large segments- full service, quick service, and fast-casual and have excelled in all three. Their competitors range from Taco Bell to Olive Garden. They have showed stead growth in term of both revenue and operating margins from 2004 to 2013. Their risk is that their food can be easily copied, but their service, efficiency, and standard have kept them at the top in the industry. When Chipotle made an appoint to be more aware of where their food came from they faced issues in the beginning. However, the percentage of food sourced from sustainable suppliers grew enough for them to claim by the end of 2010 that the majority of their meat was “naturally raised” (their term for animals raised without hormone injections and antibiotics). Forty percent of the beans they served in 2010 were organic, and all the cheese was from milk produced without rBHT. In 2010, at least 35 percent of one of produce items were sourced from smaller local farms (defined as within a 350-mile radius of the restaurant).” (Baylis,