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 does have some core competencies. They have five to be exact. The first one is serving a focused menu of burritos, tacos, burrito bowls, and salads. The second one is using high-quality raw ingredients and classic cooking methods to create great-tasting, reasonably price dishes that were ready to be served to customers minutes after they were ordered. The third one is creating an operationally efficient restaurant with an aesthetically pleasing and distinctive interior setting.
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,
In 1993, Steve Ells opened up the first Chipotle Mexican Grill in Colorado, near the University of Colorado. Ells was not looking at creating a fast food chain, but a couple restaurants to generate enough revenue for him to open up his personal restaurant which he would chef for. Instead Ells has created one of the biggest fast food chains found in America. Chipotle offers all natural organic food that give customers a fresh taste. Unlike his competitors, Ells also shows concern for where his meat comes from by raising animals more naturally on farms, instead of confinement factories where animals are crammed into cages and the use of steroid hormone drugs.
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.
Expanding into new markets such as Southeast Asian Kitchen gives Chipotle a way to increase market share of fast-casual dining outside of the original “Mexican” food market. More specifically, Chipotle seems to be a strength leader of its competition by at least 1.0 weighted score. Key success factors include quick/efficient production, geographic coverage, customer service, brand awareness/reputation, and cost containment. One reason for the leadership advantage is Chipotle’s quick and efficient production while maintaining high quality This is something that competitors have a hard time imitating. Its small lack in geographic coverage and market scope are still
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
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
Founded in 1993, Chipotle Mexican Grill is a restaurant chain that is known mostly for its burritos and burrito bowls. The restaurant also serves tacos, salads, kids meals, and
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.
The following paper will examine the organizational structure of the Chipotle organization, diagnose problems,
Chipotle Mexican Grill was founded by Steve Ells in 1993 and had its first restaurant
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 Mexican Grill was founded by Steve Ells in 1993 and had its first restaurant
