is Steve Ells. Steve opened his first Chipotle restaurant in 1993, with the goal of showing that a fast food restaurant does not have to mean it has to be a “fast food” restaurant experience. Chipotle is headquartered in Denver, Colorado and has locations throughout the United States, Canada, England, France, and Germany (Forbes, 2015). There are about 53,000 employees in the United States, and more than 1,900 locations worldwide (Berfield, 2015). Chipotle hopes to continue to increase its market share and take more customers away from industry leaders such as McDonald’s by focusing on its “differentiated strategy, unique brand, and food philosophy” (Prentice,
It creates a culture where the employees can grow and be whatever they want to be. For the organizational climate, the company focuses on the quality of their work and they each have high standards for food quality, customer service, food safety, and store cleanliness. Also, Chipotle not only wants to make sure each person is bettering themselves but also
Chipotle Mexican grill, Inc. is an American Multinational company that offers a menu of burritos, tacos and salad etc. The company is headquartered in Colorado, USA and has expanded its operations outside of the US in the previous decade by entering Canada and Europe. Strengths in the SWOT Analysis of Chipotle : Growing operations: Chipotle offered its IPO in 2006 and has been growing rapidly in operations ever since.
Running and making a successful listed company like Chipotle needs the effort of top management officers, board of directors, executive officers and all the employees. Although Chipotle is facing the new entrant threats and intense competition in the fast casual restaurant industry, it has competitive advantages in food quality and taste to capture the market shares. From two analyses of Chipotle, three problems are identified, including problem of high costs, problem of food safety and problem of limited choices on menu. Fortunately, Chipotle set up a food safety department to prevent the food safety problems and it works. Moreover, it held the festivals to promote the products and gained the reputation and profits.
Chipotle is considered a fast casual restaurant, which is their last form a competition with companies like Moe’s Southwest Grill and Qdoba Mexican Grill. Chipotle
Chipotle Mexican Grill, Inc. operates in a services sector and restaurants industry. It competes with fast, casual and dining restaurants in the industry based on price, quality, taste, location, services they offer, customer experience, brand reputation, interior, operating costs, management, diverse menu, effective marketing, facilities and safety of food. Chipotle has a lot of competitors in this segment. However, the company’s primary (direct) competitors are the restaurants that produce the goods and services that are very similar to Chipotle’s goods and services, specifically the ones that serve Mexican
-Low threat of new entrant ( High input costs ) Threats -Input costs are increasing and fluctuating (beef price is rising and some ingredients such as wheat price is fluctuating) -All the restaurant’s segments are competitors and are not only competing at their own segment but also with other segments (e.g. Chipotle Competes with meals prepared at home as well as frozen or packaged food items available in supermarkets) -People reduce eating out spending economics recession and this might affect Chipotle -Competitor’s pricing strategy – competitors such as Taco Bell are offering similar products with reduced prices to compete for Chipotle’s market share -High threat of substitute fast food ( variety of choices for consumers) Situational Analysis for Chipotle Alternative Actions and Evaluation of Alternatives Alternatives Pros Cons 1. Differentiation Strategy by “ Food with Integrity” ( current Strategy) -Differentiate from competitors -Get more attraction because of unique style of serving -Rising food prices -Need for more produce as raw material inputs -Low awareness than other brand due to their marketing style of loyalty and word of mouth
Culture at Chipotle Culture is increasingly important for companies to be competitive and relevant in the marketplace. Chipotle, a fast-casual restaurant company, understood the need to develop culture to attract and cultivate the employees that would help the company grow. Because of the changes, they have made and the employee-centric culture they have cultivated, they have changed their industry and continue to set standards for many industries to achieve. As with many companies, they also have weaknesses in their culture that need to be addressed and improved. Chipotle Culture Development Chipotle has come to be known for the culture they have developed over the last several years.
Compared to other competitors, there are some aspects in Chipotle’s competitive strength that equal or even higher than its rivals. However, “menu” seems to be its weakest aspect of all because of its limited choices. Taco Bell, Moe’s Southwest Grill and Qdoba Mexican Grill all have a variety of choices on their menu. * Chipotle does have a net competitive advantage over its competitors for three following reasons:
Chipotle’s competition includes a variety of restaurants, including locally owned restaurants, national and regional chains. Many of Chipotle’s competitors carry-out, offer dine-in and delivery services. Unlike Chipotle, a number of their competitors expanded through franchising. Their competitors compete by offering menu items that are specifically identified as low in carbohydrates. Competitors in the fast-casual and quick-service section of the restaurant industry also emphasize their lower-cost, “value meal” menu options, a strategy not employed by Chipotle Competition for Chipotle also comes from the deli sections and in-store cafés of several major grocery store chains, These competitors may have, among other things, a more diverse menu, lower operating costs, better locations, better facilities, better management, more effective marketing and more efficient operations than
Those who are not concerned say that Chipotle is generally fresh and has better quality food than many other fast food restaurants. They also believe that the chances of getting food poisoning at a restaurant are slim . Nevertheless, Chipotle was not able to avoid criticism. Earlier this month, a group known as the Center for Consumer Freedom went on the New York Post.
The goal of the report is to provide an overview of the research performed on the company Chipotle Mexican Grill. This report will go over several key information pertaining to this company. Some of these include an overview of the company and its products or services; company’s key distinctive features; history, growth and the current location of operations; the company’s "mission"; its atmosphere; its target market; competitors and problems the company has had with previous expansions. By the end of this report, you will have the necessary information about this
And achieve as a result, the grow for its brand, market share, and sales revenue. Key Issues for Chipotle Chipotle is quite strongly positioned fast casual segment but it is facing increasing competition from the quick service restaurants such as Taco Bell that are looking to compete for the market share. These quick service restaurants are trying to attract fast casual customers by providing similar products at a lower price which is a threat to
For CEO, Steven Ells, the different components of Chipotle’s business-level strategy are key to the company’s overall success and profitability. In order to be successful in the fast causal, restaurant industry, Chipotle uses a differentiation strategy. According to Strategic Management, this is a “generic business strategy that seeks to create higher value for customers than the value that competitors create, by delivering products to services with unique features while keeping the firm’s cost structure at the same or similar levels” (Rothaermel 167). With this, Chipotle serves unique meals created using high-quality raw ingredients. Its commitment to serve “food with integrity” has changed the way people think about and eat fast food.
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.
