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Chipotle mexican Grill, Inc. case study
Chipotle mexican Grill, Inc. case study
Chipotle mexican Grill, Inc. case study
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Chipotle Queso: The Key to Happiness Growing up I loved the flavors of Chipotle; the smoky meats, the charred peppers and the blend of delicious sides. One may ask why choose this advertisement for a company like Chipotle, because of the many persuasive images, textual messages, and vibrant visuals found in this mouthwatering piece. I consider this advertisement similar to an urgent announcement in which Chipotle is warning their customers to get excited that they finally have queso. Each and every day society craves food and as we all know, Chipotle competes with multiple restaurants in the mexican fast food field. My question is, what makes Chipotle stand out from the rest?
Elis’s idea behind Chipotle was to offer “fresh ingredients and great taste . . . prepared on site,” served as quickly as fast food (39). He coined the term “fast-casual.” The first restaurants opened in 1993 and offered lunch and dinner. One difference Simpson points out is that unlike many fast food chains, Chipotle did not franchise and used its own distribution centers to maintain quality, which was extremely important to the company’s values.
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.
Chipotle’s competitors have a difficult time competing against or imitating this competency because the times on Chipotle’s menu are tested and proven. Competitors don’t have the time or ability to test this concept or perfect their menu items. Chipotle on the other hand has been able to apply this limited menu style to the other ventures such as their two Shop House locations in Washington D.C. Another core competency, shown in Figure 1, is their dedication to high quality ingredients such as the organic cultivation of produce and naturally raised meat. Chipotle meets high customer expectations with their ‘Food with Integrity’ campaign.
One of the most popular restaurants in the US, Chipotle. This company have been dominating the fast food industry in the whole process of how its prepared, and its quality is as the taste. After going to Chipotle yesterday I have decided to make a review, and the best way to review a restaurant is to judge it by the service, quality of the food and the atmosphere. Chipotle has a unique way of serving the food.
Chipotle wants to increase customer awareness. Serving a focused menu, using high quality, fresh ingredients providing, great -lasting reasonably- priced dishes, prepared to order and served within one to two minutes is chipotles product strategy. The fast-casual restaurant industry makes it fairly easy for a similar fast food place to enter the market due to low barriers. Chipotle needs to continue innovating and marketing in order to stay
In 1993, Chipotle Mexican Grill (CMG) was founded by Steve Ells and was initially introduced to the restaurant market in Denver, Colorado. Chipotle had a mission to significantly impact and alter the restaurant industry, specifically the fast-casual segment. Its growth occurred quite swiftly and its success caught the attention of the global corporation McDonald’s, who ended up investing more than $350 million into CMG, Inc. and profiting $1.5 billion in return. According to Exhibit 5, “Revenue and Operating Market”, from the year 2004 to 2013, profitability continuously grew from nearly $500 million to more than $3,000 million USD. In 2013 alone, revenue increased by 17.7%.
Then in 1998, McDonalds invested $360 million into Chipotle, allowing it to expand rapidly. The Chipotle Mexican Grill experience is an introduction to fast food 2.0, a new version of chain eateries that focus on quick, fresh, and hip food for us young people. Focusing on fresh ingredients, Chipotle’s ingredients are organic and their meat is not contaminated with chemicals, unlike most other fast food chains. When I step up to the counter, I notice a refrigerator filled with drinks. With a full liquor license, Chipotle also
The company’s new restaurants have been performing well and adding up to the bottom-line of the company to strengthen its finances. Weaknesses in the SWOT Analysis of Chipotle : Dependence on the limited small number of farmers: Chipotle has maintained its integrity when it comes to quality of food, but the in the recent years Chipotle has had its share of controversies especially during the E.Coli outbreak in FY 2015 causing food-borne diseases. This was mainly due to Chipotle’s dependence on small, independent farmers for some of its main ingredients such as beef, pork, chicken etc. Limited food items on the menu: Chipotle’s restaurant serve a variety of burritos and tacos but the menu is limited to mainly burritos and tacos and hence lack a wide range of food items. When compared to its competitors such as Qdoba Mexican Grill and Panera bread which offer a wide range of items and hence customer spending is higher at such outlets.
Chipotle is currently categorized as Mexican-style fast casual dining. What Chipotle differs from fast food industry is the highest quality food and a more appealing environment. Meals have a typically higher price than at a fast food restaurant, but food is prepared using healthier fresh ingredients. Their main competitions that are in the same industry as Chipotle Mexican-style dining are Qdoba Restaurant Corporation; Fresh Enterprises, LLC; Mswg, LLC; and Rubio's Coastal Grill.
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).
The food industry has always been and will be a competitive market for businesses to work in. There are four types of restaurants that Chipotle must notice as competition in their market. There are fast service restaurants such as Taco Bell relying on fast service and cheap prices as their main advantage. Casual dining chains are the next form of competition, giving customers the option of having table service at a higher price. In every area Chipotle operates, there are also locally owned restaurants that supply a more personal and long lasting relationship with their customers.
The company was figuring out solutions and ideas to promote Chipotle even farther such as using more “owned media”, “Cultivate Chicago” and also community events. Chipotle also increased the use of social media in its marketing mix and gave customers new opportunities to access Chipotle in new ways that promoted convenience in exchange this gave Chipotle an advantage to engage with its customers. Also, this gave the company an opportunity to compete with its competitors. Chipotle competed with national and regional fast-casual service and casual dining restaurants, in addition to locally-owned foodservice establishments. More specifically, their competition include large chains such as Taco Bell, Moe’s Southwest Grill, and Qdoba restaurants.
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
In Chipotle restaurants, they use “low VOC paints, Energy-Star kitchen equipment, and light controls that adjust based on natural light level.” Examples of their environmentally friendly products include “bowls made of recycled newsprint, gift cards made with corn-based plastic, and napkins made from unbleached paper” (Vaccaro, 2009). Lastly, Chipotle offers online ordering and catering. Chipotle’s customers can easily order through their smartphone or computer and pick up their order at the closest store. Chipotle’s catering options are perfect for any party, event, or business meeting.
