Case Study Chipotle

Good Essays
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. Today, Chipotle is a majority owner of seven of them in different locations across four states. Diversification in branded fast food chains may help in generating additional revenue streams, which should benefit Chipotle in the long run. It is also a common way of risk if focusing in one area only, however Steve Ells was more about the service and the way that was provided more than the product itself (burritos, tacos etc.) so…show more content…
Since the mission of Chipotle was always to provide a new generation of fast food, prepared of high quality ingredients with the most personalized way and within a great distinct environment, maybe more suitable to meet their criteria, ( in a less traditioned way of the “casual dining” of US. The adjustments will have to be made accordingly in order not only to have the correspondence wanted at profit margins but also in order to be satisfied for this
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