Chipotle has suppliers that can provide high quality ingredients for their products, for a great price. New entrants will face high cost of ingredients due to the difficulty of finding suppliers. Another factor that creates high entry barriers for new entrants, is the brand loyalty that chipotle has. Chipotle has gain a relationship with their customers, due to the chipotle’s mission and values. Although the threat of new entry is low, innovation can break the barrier of entry and can lower the Chipotles profitability.
This was a result of an increase in cash generated by operating activities that increased 11.2% from last year’s same period. Moves to drive growth Armed with a strong fundamental and cash position, Chipotle is making moves to improve its financial performance going forward. In order to sustain its competitive edge, Chipotle has taken various measures. For instance, Chipotle’s has expanded its delivery partnership with Tapingo, which will allow it to deliver to 40 college campuses by this year and more than 100 colleges by the end of 2016. Additionally, the company also added 48 new restaurants in the quarter, bringing its total count to 1,878.
Chipotle, sought to diversify , following the example of other restaurant chains, mainly in order to allow increased growth in penetration, as there is limit on the number of the Chipotles it can open in the U.S. Management team also believed that model of service Chipotle had applied would work well with other types of cuisine. In 2011, the new concept the company experimented with was the Shop House, a concept similar to Chipotle but with Southeast Asian cuisine like curry and noodles instead of Mexican food after an idea the co-CEO had and before was applied, travelled to Bangkok to gather more information. The chain was expanded to 15 different locations. The next concept the company launched choosing pizza section was with Pizzeria Locale, as a fast-casual pizza chain. Pizzeria Locale was discovered by Steve Ells when it had just one location, and Chipotle decided to become an investor in the concept.
During the next couple of months, sales for the company may decrease slightly. However, now and during the future, Chipotle will look for ways to prevent similar crises from happening again. This could mean strengthening food and safety codes at all restaurants. In short, Chipotle is determined to do whatever it can to make sure that no food poison enters its “food with
Chipotle uses organic produce and free-range and antibiotic-free meats which requires them to work with a few selected suppliers which increases its supplier power. When it comes to the fast food industry which Chipotle plays a part in, Customer Power is a very important aspect of the industry. If customer power is strong, the customer has the power to set the price to what they would like to pay for the product. Customers in the fast food industry demand an experience which is unique and they also demand high quality food. They have the mentality of the customer is always right.
Therefore, Chipotle is seeking better food from using ingredients that are not only fresh, but that are sustainably grown and responsibly raised with respect for the animals, the land, and the farmers who produce the food. Today, Chipotle continues to offer a focused menu of burritos, tacos, burrito bowls (a burrito without the tortilla) and salads made from fresh, high-quality raw ingredients, prepared using classic cooking methods. True to the tradition of French cooking, Chipotle insists on fresh products—not canned, frozen or
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?
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. The following paper will examine the organizational structure of the Chipotle organization, diagnose problems,
Compared Chipotle’s competitive advantages to its competitors in the same industry including Taco Bell, Moe Southwest Grill and Qdoba Mexican Grill, we can see that while there are some competitive advantages are equal and even higher than its rivals’, there are still some competitive advantages are lower such as dealers network * Chipotle does have a net competitive advantage. Firstly, they have a focus menu, along with classic cooking technique, which enhances the taste of the food. Secondly, Chipotle establishes a reputation for using organically high – quality ingredients, which attracts customers because of its consciousness for healthy lifestyle. In addition, Chipotle is famous for its quick and hospitable service. * After the comparison,
CRegardless of Chipotles strengths, the company has encountered some weaknesses as well. In respect to future growth, Chipotle has seen some growth and are profitable, but there are some crucial factors that could be a warning sign of possible challenges. Chipotles principal weakness is its limited menu choices; there are basically customizable items on the menu that customers can order. Chipotle will have to offer more options to customers or increase marketing strategies; the main goal is to gain and retain customer confidence. Additionally, highly priced food items are another concern for Chipotle.