Chipotle Essay
Industry Overview
National and regional fast-casual, quick service, and casual dining restaurant chains are a profitable industry and have maintained a steady growth since 2010. More specific, fast-casual food chains are in competition with each other and must continually try to differentiate its products from other restaurants in the industry.
While looking at the industry, there are a few factors that effect the decisions that many restaurants make. Sociocultural, environmental, and regulatory factors are a few of the most significant forces that make up the macro-environment of fast casual dining. More importantly, sociocultural norms such as healthy eating trends pose threats as well as opportunities for the restaurant business with vegetarian and organic production of food becoming more of customer interests.
Out of the five competitive pressures that firms in the industry must identify, rival firms and buyer power have the most significant effect on the fast casual industry with substitute products, such as other fast food restaurants, creating a moderate issue for the competition. Rival firms in
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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
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1021 Words | 5 PagesThe 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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464 Words | 2 PagesThe threat of new entrants in the market of Mexican Food restaurants, which serve food at a fast pace, is relatively high. It is easy to see how the barriers for entry into this type of industry would be low. The food is relatively easy to make, the locations to hold this type of restaurant are nearly endless, and the need is there. In this industry there are very few companies that hold a large amount of the available market share, thus making it relatively easy for new companies to get started.
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1245 Words | 5 PagesChipotle has a major opportunity to increase its number of customers and most importantly its profits. Unfortunately, even though this fast food franchise has the capabilities of fulfilling the rise in demand, they still have to take into consideration all of the factors that can still hurt the company. As listed above in the analysis, Chipotle has to continue to improve their food and services to continue to bring in more customers. Their opportunity can also become a weakness in the near or far future, the current trend is to eat healthy, consumers may get over this fad and may not worry as much on the amount of calories they consume.
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1175 Words | 5 PagesChipotle is a fast casual dining restaurant. It was opened in 1993 by Steve Ells. This paper will discuss the quick success of the restaurant and the sudden fall of the company as well. It will look at the growth statistics of the company, its investors, what caused this company to plummet so quickly, and what could have been done differently to avoid this outcome. Steve Ells loved to cook at an early age.
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377 Words | 2 PagesAs a whole, the restaurant industry faced rising food costs that reduced operating margins; however, restaurants were able to absorb the higher costs (Standard & Poor’s, 2016). Particular to the fast-service restaurants, Standard and Poor (2016) assessed store sales to rise 2 to 3 percent in 2016 as customers seek lower food prices in fast-service restaurants as opposed to
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2699 Words | 11 PagesThis provides a valuable tool for molding the kind of success-orientated culture at Chipotle. Instead of wasting time and resources while recruiting new members, they save time, capital, and resources by rewarding and promoting from within. This leads to maximization of profit, reduction of turnover, and improved employee satisfaction and performance through retained knowledge, skills, and experience of long-term employees. The net effect of these communication and management methodologies is to ensure that services offered to customers are of the highest possible quality. For example, 84% of the customers spend less than five minutes waiting to be served.
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