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Chipotle's Executive Summary

540 Words3 Pages

The company aims to have 2,000 stores by the end of next year. Until now, they have around 1,700 stores opened in 2014. They use a rapid store expansion to increase their sales and market share. The company has a good average same-store growth of 9.2% from 2010-2012 so they have high opportunity to be successful on this strategy because new store opening is a key driver for their growth plan as well. Currently, Chipotle opening hour is 11:00am to 10:00pm. The company has 2 locations that serve breakfast meal, which becomes an opportunity for Chipotle to expand their customer group and gaining more sales. They plan to extend opening hour for breakfast meal for 50% of their overall location. The company had a profitable result from those 2 testing locations so they also have higher chance to target this period. Finally, the company plans to increase average store sales to $2.1 million per year, which will generate incremental sales annually. With a rapid store expansion, the company can …show more content…

They did not do much on TV advertising. Chipotle used a video strategy on YouTube “The Scarecrow campaign” to deliver a message to their customers about their source of products, which come from natural only. It was very emotional and successful from this viral marketing campaign. They encourage customer to think differently to improve their brand value. By focusing on non-traditional marketing can reach to their millennial target group easily and cost efficiency. Next, they launched a mobile application game that reminds customer with the company concept. The strategies of utilizing digital channel were very attractive to their customers. More importantly, targeting on online or mobile channel can really strengthen their engagement toward social and environment concern and improve their brand image eventually (Schoultz,

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Chipotle Mexican Grill is an American restaurants chain that offers a focused menu of burritos and tacos. The company was founded by Steve Ells in 1993 with a vision of “food with entirety”. The company started its operations in the state of Colorado when it launched its first Chipotle in the city of Denver. Over the course of next five years, the company expanded its operations and successfully launched its Chipotle restaurants at several locations across the state of Colorado. Impressed with the proof of Chipotle’s concept, McDonald's jumped on the wagon in 1998 by acquiring small stake in the company which was later converted into the controlling stake in 2000.

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Chipotle Mexican Grill is a fast, casual restaurant that is mainly known for its bowls and large burritos and became popular by advertising on all sorts of platforms like music platforms and others that may reach a younger audience. The company made its initial public offering in January 2006. The company’s main objective is “ensuring that better food is accessible to everyone” (Chipotle Website). The founder of Chipotle sought to change people’s perspectives on fast-food and wanted to change the experience as well which led to the success and increasing popularity of the restaurant.

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Out of the five generic competitive strategies the one that mostly resembles strategy of chipotle is the broad differentiation strategy. With their campaign of food with integrity their strategy reaches out to a customer base that is conscience of products that are high quality and this includes their meals. The strategy opens up to a broader customer base that values quality food coupled with reasonable prices. They are not in niche company even know they sell burritos and alike in their stores. Thinking on broader terms they are still a restaurant that is trying to be competitive in a market with such restaurants like McDonald’s or most selfless grill.

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Chipotle give experience to customer from entrance of the restaurant until they order their foods. The company allows people customize their own foods. Chipotle make its company differentiate from other by using high quality of ingredients and serving freshest foods. It focuses on people who love delicious healthy foods. Moreover, the company always promotes its products by giving free burrito on some holiday and the first day of grand opening restaurant (Chang, 2014).

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Chipotle Mexican Grill STRENGTHS • Green technology • Positive bran image • Fresh and healthy food • Great customer service • Low advertising costs • Great financial performance in recent years WEAKNESSES • Lots of competition • High Price OPPORTUNITIES • Expansion of menu times • Ability to expand advertising costs • Ability to develop a market strategy to increase market share THREATS • Not a lot of menu options • High menu price • Competition is growing Chipotle Mexican Grill is a company that operates in the casual fast food Mexican restaurant market. They mainly operate in the United States but have expanded to Canada, the United Kingdom, France and Germany in recent years.

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help Chipotle offer high quality products made of the best, organic ingredients. Chipotle’s weaknesses are easy to copy limited menus that haven’t changed since the opening of the first restaurant and also the prices. When compared to some of their competitors such as Taco Bell, Chipotle is priced well above but still provides a higher quality food. Also purchasing organically grown food could be limited due to small number of suppliers and availability of specific foods. Chipotle’s main opportunities are expanding internationally, possibly targeting the emerging markets such as China or India while customizing their menus to the customers’ preference of the particular country.

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Chipotle opened its first casual fast food restaurant in Denver restaurant in 1993, Chipotle Mexican Grill was founded by Steve Ells who at the time was a graduate at culinary Institute of America. Chipotle Mexican Grill offers a menu of a variety of food items which mostly are burritos and tacos, Chipotle is located in many parts of the world, not only is Chipotle doing business in the US, but also in Canada and UK, how Chipotle does and runs its business is slightly different from what customers are used to and expect regular fast food restaurants. Chipotle has managed and maintained the high-quality standards and also continue to improve. Chipotle success is mainly by following these tools in their business, what kind of menu, high quality

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Since 1993, when its first restaurant was opened in Denver, Colorado, Chipotle proved to its clients that high-quality food can be served fast. By using only fresh ingredients and adding no artificial flavors, Chipotle has managed to create trustful relations with its customers and even expanded its business to other countries. Chipotle has opened its stores in few countries such as the UK, the US, Canada, Germany and France. It is now time for the corporation to follow the lead from other companies like Yum. Brands such as KFC and Taco Bell as well as McDonalds expand their footprint in the Asian market like Japan.

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Introduction The restaurant industry in the United States had annual sales of $ 631.8 billion and employs 12.9 million people in 2012. Even in times of recession there is little evidence that this industry has seen a decline especially in its fast food and quick service segment. But with a depressed economy with no immediate upward trend in the near future, majority of the customers indicated that they would either curtail their spending on eating or best maintain its current level which is certainly going to affect the future of many restaurants in the industry. Chipotle is part of the fast casual segment of the U.S industry with over 1,600 restaurants.

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In recent years, Chipotle has overtaken the likes of fast food greats such as McDonald’s and Burger King with their innovative “burrito joint” styled restaurant. When thinking about what underlying themes support this success, a few different things come to mind. According to Ashley Lutz of BusinessInsider.com, the advantage stems from faster waiting lines, better customer service, better environments, a healthier perception, and a trendier image (Lutz, 2014). This attributed to the 9.3% sales increase the company saw in 2013, compared to a 1.3% decrease for McDonald’s (Lutz, 2014).

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Since the mission of Chipotle was always to provide a new generation of fast food, prepared of high quality ingredients with the most personalized way and within a great distinct environment, maybe more suitable to meet their criteria, ( in a less traditioned way of the “casual dining” of US. The adjustments will have to be made accordingly in order not only to have the correspondence wanted at profit margins but also in order to be satisfied for this

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Chipotle is a very successful fast food restaurant business within the domestic boards of the United States; therefore it would seem like the next step would be to expand the business internationally. There are many opportunities to be enjoyed by expanding Chipotle into the international market, however there are also many challenges that need to be considered before this decision is made. Some of the great opportunities Chipotle has the ability to achieve when expanding internationally are things such as increased profits, well recognized brand name, and growth. The strongest motivator for a business to expand is the idea that more Chipotle restaurants equal more profits. This idea can be found valid if the expansion into foreign markets

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Chipotle has been an established player in the Mexican casual fast food industry since 1993. They are currently the 2nd largest Mexican fast food restaurant, only behind Taco Bell in terms of sales.1 Chipotle sells its product as one of the freshest, highest quality Mexican establishments with the convenience of ordinary fast-food. They offer premium ingredients all sustainably sourced. Despite being the second largest Mexican fast-casual restaurant, Chipotle’s revenue reached $3,904,384 in 2016 growing 42.95% since 2012, gaining a huge portion of market share in the process.2 While EPS may have dipped from $8.82 in 2012 to $.78 in 2016, it quickly recovered to $6.19 in 2017 and revenue reached 2015 levels again at $4,476 million.3 Chipotle’s promise of fast food with high quality ingredients has helped it gain massive popularity and, as a result, revenue in recent years.

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"While 2015 presented plenty of challenges and much for which they need continuous improvement, the organization is pleased to report “best ever” sales and profit as a result of increases in each of their four growth pillars. On a consolidated basis, total revenue grew to $5.05 billion, a 7.3% increase from last year. Excluding 2014’s 53rd week and paint equipment for retailers, revenue increased 9.6%. Consolidated net income increased 10% to $156 million, fueled globally by 226 new stores and very strong domestic increases in retail same-store sales, up 4.6%. Same-store transactions increased 1.9%, the highest in 15 years and same-store retail gross profit grew 5.3%.

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Research report on Chiptole restaurant Introduction: When the Chipotle opened its first restaurant in 1993, the idea was simple: to show that food served fast did not become an experience of "fast food" is. Using high-quality materials, classic cooking techniques and a unique interior design feature from the food we brought the realm of fast food restaurants in the world. Today, 20 years later, we have to sacrifice to find the most suitable components, we can - Respect for animals, farmers and the environment, through the commitment of our food, honest representation. As we grow, we are committed to creating an exceptional experience for our employees cultivate real and valuable opportunity, the natural result of a culture.

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