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Case Analysis Of Chipotle

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Introduction
The restaurant industry in the United States had annual sales of $ 631.8 billion and employs 12.9 million people in 2012. Even in times of recession there is little evidence that this industry has seen a decline especially in its fast food and quick service segment. But with a depressed economy with no immediate upward trend in the near future, majority of the customers indicated that they would either curtail their spending on eating or best maintain its current level which is certainly going to affect the future of many restaurants in the industry. Chipotle is part of the fast casual segment of the U.S industry with over 1,600 restaurants.
Chipotle Mexican Grill was founded by Steve Ells in 1993 and had its first restaurant …show more content…

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. And achieve as a result, the grow for its brand, market share, and sales revenue.

Key Issues for Chipotle
Chipotle is quite strongly positioned fast casual segment but it is facing increasing competition from the quick service restaurants such as Taco Bell that are looking to compete for the market share. These quick service restaurants are trying to attract fast casual customers by providing similar products at a lower price which is a threat to …show more content…

With these premium products as inputs, Chipotle maintains its status as an industry leader, and thus, should continue to expand throughout the U.S. and later into the international market. Despite Chipotle’s success in the U.S., it faces challenges to low brand awareness and competitors competing for its markets. However, by reviewing menu and developing marketing strategies through passive marketing strategies and developing to integrate their supply sources than before Chipotle can be as competitive as before and expand at the same

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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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For Chipotle, their suppliers are the key to the type of business that they wish to portray to their target market. As a GMO free food chain, it is integral for the food which they buy has been raised with the utmost care and integrity. As such, this gives the suppliers a strong hold on the bargaining power, as the number of suppliers of this type is rather limited. The threat of substitute products for Chipotle is relatively high, due to the fact that the number of options available to the average consumer are nearly endless. Whether that be choosing to eat at home, or one of the many other restaurants that are available.

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Who hasn’t heard about Chipotle yet? Chipotle is modern day fast food business. Chipotle thrives on serving non-GMO and healthy foods. Chipotles profits are estimated over $200 million. There are over 2,000 Chipotle franchises across America in 2015.

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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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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.

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Introduction Chipotle is an American fast food focusing on Mexican flavor. Its main products are Mexican food, including Mexican rolls, soft/hard taco, rice. The ingredients are mostly fresh beef, chicken, pork, various vegetables, various beans, rice, In particular, the company put forward the slogan "Food with Integrity", which means that the company promises to obtain raw materials in the most friendly way for animals, environment and farmers, and use the most natural ingredients to ensure food safety. In particular, the company promises to try to feed animals, vegetables and milk without antibiotics naturally. At the same time, the company also promises to use locally produced ingredients as much as possible.

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The fast food restaurants, McDonald's, and Chipotle, are the same in some ways, and different in others. I think both chains want to be, and are successful, but they also want the best for their customers. The difference between these two restaurants are how they go about achieving it. McDonalds wants the best for their customers, and achieves this by taking large amounts of time to create good tasting meals, but also using the best ingredients. In my opinion, Chipotle is putting in more effort to get even better ingredients, and fresher food than the ordinary fast food chains, such as McDonalds. Because Chipotle has so much pride in the outcomes of their food, and customers, they don’t get their animals from places where they are badly

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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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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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