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Executive Summary Of Chipotle

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I - EXECUTIVE SUMMARY
When Chipotle opened its first branch couple years ago, its ideology was simple: shows the public that food served fast didn't have to be a called or seen as "fast-food". To make it looks and sounds different, its founder used high-quality raw ingredients, classic cooking methods, an impeccable restaurant interior design, and friendly employees to take care of customers. At the time Chipotle, was the only restaurant trying to change the way people see fast food. Twenty years after the first one was opened, chipotle owners and founders now own 1,500 restaurants. They compete in a category of dining now called "fast-casual,". Fast-casual, is defined as the fastest growing part of the restaurant industry. With fast casual, customers expect food quality that's in line with full-service restaurants, with the speed and …show more content…

To be the best, they elevate raw ingredients into food that has more values, that is natural and sophisticated through their recipes and cooking techniques. Their goal has always been on using better ingredients and cooking strategy used in high-end restaurants to make great food accessible at reasonable prices. While using better quality ingredients, they also concentrate on where to obtain each ingredients. It is so important to them that; it has become a most important play of their effort to improve their food. The ingredients they use include everything naturally raised such as pork, beef and chicken. It also includes organically grown and sustainably grown produce. Chipotle dedication to use high quality ingredient has made it the fastest growing fast food restaurant in America since 1993. With their business strategy geared towards sustainable and durable material, its low advertising cost, it dedicated employees and customers Chipotle is set to rule the world of fast food and really revolutionize to way people

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The original material of food cost of Chipotle operating costs is larger than other fast food restaurants, although this is a measure they have to implement to ensure freshness and health of food they sold, this is the reason for their high food prices. Even if the majority of customers are willing to pay for the higher cost of health food, Chipotle still should find out some effective ways to reduce the cost of their food in the future. Here are some suggestions: firstly,negotiate with the original suppliers to establish a long-term and stronger cooperative relationship to achieve a purpose of a certain reduction in the purchase price. Secondly, take advantage of suppliers’ promotional discounts. Attempt to make communications and collaborations

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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.

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Chipotle is one of the most successful restaurant in the U.S. but every organization got some weakness and problems, today I would like to share with you what is the biggest chipotle’s problem ever that cost this restaurant a lot of money and lose trust from costumers and bad image in the media which is POISONING !! :- The fifth-biggest multistate sustenance harming flare-up of 2015 was the E. coli episode connected to nourishment served at Chipotle eateries in nine states. No less than 52 people were sickened, 20 of them were hospitalized. The episode was one of a few nourishment harming flare-ups connected to Chipotle this year including a Salmonella flare-up that sickened more than 60 individuals in Minnesota.

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When Chipotle again became an independent organization, Steve Ells and his team kept the company focused on a path of quick expansion and continued to leverage the same plan that was around when the company began. From 2003-2004, Chipotle began to use organically-grown produce found at local farms such as: beans, dairy products such as cheese and sour cream, meats raised with animal welfare in mind and never fed with antibiotics or growth hormones that accelerate weight gain as do many other farmers. This ideal was a long-term strategy exercised by Chipotle and dubbed “Food with Integrity.” Chipotle used almost exclusively meats that were brought up naturally in nearly all of its restaurants in the United States. This did bring on additional challenges in regards to both price and availability of sufficient supplies of ingredients for their products.

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Chipotle matches a young peoples life style. In our research we found that while some young people enjoy cooking they find they just don’t have the time to prepare something all that healthy. This is where they turn to something quick and easy without compromising on quality. We found in our findings that half the participants eat out more than five times a week. One of our participants eats out to chipotle 3 times a week!

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Chipotle appeals to a diverse customer base throughout the country and beyond. We offer our customers a wide range of flavors from a concentrated selection of, top-quality ingredients that are expertly prepared by a passionate team of extraordinary people. Our focus on our unique people and food cultures has created an impressive demand for a restaurant experience that is redefining fast food for the better,” Chipotle Mexican Grill (2014). Chipotle has managed to open over 1500 restaurants with increased sales, since its inception in

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The barriers to entry are relatively low due to the low start-up cost of the business. The fast casual dining segment is also in its growth phase, therefore many competitors are competing for market share in the industry. Since Chipotle effectively uses a differentiation strategy to gain market share, they incur higher food costs. Naturally raised meats, organic grown vegetables and beans, as well as rBGh free dairy products, come at a higher price than the processed foods than are commonly used in the fast food industry. Therefore, Chipotle directly negotiates with their suppliers to ensure that the products meet their standards.

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Abstract Chipotle Mexican Grill is a well-known company that deals with fast food and has made significant and distinctive progress compared to other companies in the fast food industry. The company not only prepares food in front of customers but also makes sure that food is made with integrity. The integrity is enhanced by finding, evaluating, and choosing the right ingredients, which are from animals, farmers, and the environment (chipotle.com). These are the principles that serve to direct and guide the organization and help position it as a leader in the industry.

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With its mission statement of “Food with Integrity” Chipotle has seen success over the last decade. But with the increase of raw material input increasing, Competitors using pricing strategy to compete for its market share and the economic Chipotle is facing some though decision on if it should continue with its “Food with Integrity” which it can ill afford in these difficult times. In this paper, we will try address ways in which Chipotle can reposition its efforts to focus more on this unique offering without affecting their “Food with Integrity” Concept. By doing so, we believe that it can capture the important and growing segment of customers who are the health-conscious, organic-friendly consumer.

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Chick-Fil-A vs Chipotle: Which one is better? Many people lately have been raving over Chipotle, and Chick Fil-a lately. I have always thought to myself what is so great about these two food chains. Many people like Chipotle, and then there a a lot of people that love Chick-Fil-A.

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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.

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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.

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The reason for choosing this outlet is they are committed to customer satisfaction through offering high quality food with exceptional service and good value. They take great pride in serving each other, their customers and their communities. They seek continuous improvement in all that they do. They value a sense of urgency and emphasize an innovative, entrepreneurial approach to business. They expect fairness and mutual respect in all our activities.

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