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Situation Analysis: Chipotle Mexican Grill

1324 Words6 Pages

Chipotle
Strategic Profile and Case Analysis Purpose
Chipotle Mexican Grill founded in 1993 by Steve Ells became known as the fast-casual dining in the restaurant industry (Hitt, Ireland, & Hoskisson, 2013). It was the first of its kind when Ells first opened his first restaurant and brought the idea of made-to-order burrito. The concept is so simple, and the consumer is in control of what ingredients goes into their burrito. “The immediate success from Ells’ first restaurant allowed him to repay the $80,000 loan that he borrowed from his father within a month of opening” (Hitt, Ireland, & Hoskisson, 2013, p. 71). Furthermore, this gave him the confidence to open his second restaurant in just two years.
Chipotle’s business model is so attractive …show more content…

Who would have thought that technological trends play a role in the food and service industry? Because Chipotle’s service is a hybrid between fast food and casual dining, it is in the organization’s best interest to leverage the technology that is currently available to their consumers. According to Chipotle, they’ve improved customers wait times by 50 percent since they’ve introduced digital orders (Kell, 2017). For people who are constantly on the go, Chipotle is a fast and healthy alternative that is better than fast food.
Demographic Trends. Chipotle’s major consumers are the millennials. According to Washington Post, the millennial generations (born between 1981 – 1996) make up the largest demographic of fast casual dining because they view fast food choices as unhealthy (Ferdman, 2015). With the price point of fast-casual ranging between $9 and $13, the millennials would pay almost twice compared the cost of fast food which is around $5 for a healthier choice (Ferdman, …show more content…

Any successful organization with profitable goods and/or services pose the risks and threats of new entrants from competitors. Chipotle is very vulnerable because of the mishaps that hit the organization in the last two years. Competitors will use this as a perfect opportunity to gain market share by offering food that are safe to eat.
Threat of Substitute Products or Services. When Chipotle first introduce the fast-casual dining model, it was one of the first in the industry. Since then, others have followed the same concept and consumers now have a variety of choices from Mexican, American, Italian, Mediterranean to Asian cuisines. Today, Chipotle is not just competing against competitors who offers the same ethnic food but also against competitors who provides food from other countries.
Bargaining Power of Customers. Chipotle consumers have the upper hand in this situation because of the choices available to them. There are a wide variety of choices they can choose from at different price points. Chipotle’s challenge is to regain their consumer’s trust and provide food and/or services that is unique to their

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The dedication, devotion, time, and loyalty Chipotle takes to provide its customers with top quality nutritious ingredients every day is praiseworthy. Even though supply-demand has often occurred resulting into unavailability of locally grown products, Chipotle has managed and continues providing a dish filled with top quality nutritious ingredients. As a result, competitors have never taken a strong position or any initiatives in providing customers with the best quality. One of the other strength of Chipotle is that it not only offers speedy and convivial service but it also provides a lively, restaurant ambiance. Also, another strength of Chipotle is its focused menu with an option to customize as per the customers’ liking, requires minimal employee training, enhances cross-training, escalates productivity, and increases

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On the other hand, chipotle has many meat options as well, such as chicken, steak, carnitas and more. There are many options to explore, or you can always go back to your go-to burrito bowl, salad, burrito, tacos, and even a quesadilla burrito from their secret menu! Chipotle has many options to explore, like most other companies weather food or not their are many aspects of that business. Such as financing, health, worker compensation and more.

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