Chipotle Mexican grill, Inc. is an American Multinational company that offers a menu of burritos, tacos and salad etc. The company is headquartered in Colorado, USA and has expanded its operations outside of the US in the previous decade by entering Canada and Europe.
Strengths in the SWOT Analysis of Chipotle :
Growing operations: Chipotle offered its IPO in 2006 and has been growing rapidly in operations ever since. From 578 restaurants in 2006 all based out of the US to 2010 restaurants in 2015 in US, Canada and Europe. Chipotle’s rapid expansion in the US and other countries helps reduce dependency on a single market and enhances its brand awareness and recognition.
Marketing Initiatives: Chipotle is marketing the brand not only through
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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.
Higher Price Points: Chipotle specialises in burritos and tacos and presents them with a superior quality and hence has a higher price point than the competitors. This becomes a disadvantage as people look out for cheaper
Chipotle kept their menu simple, but still managed to provide over 65,000 customization options, and customer’s can choose to order online or through a mobile app. The company was incredible successful with recognitions from Wall Street Journal and Fast Company
My high school graduation, state championship banquet, and late night food runs throughout high school were all catered by Chipotle. I’ve been involved in so many delightful conversations and learned so much about my friends and family over a hearty meal from this restaurant. The service is amazing, the atmosphere is great, but the food is what brings everyone together. All the food Chipotle offers mixes together perfectly and you can always finish your meal off with their queso. I cannot think of one time that queso was not smothered all over my burrito bowl since they started serving it.
1. History of the company/brand Chick-Fil-A is a family owned quick-service chicken restaurant chain based in the U.S., headquartered in the Atlanta district of College Park, Georgia. Chick-fil-A provides nutritious and freshly prepared chicken sandwich and related products alongside with various wraps, burgers and breakfast items. Chick-fil-A is most famous for its signature chicken sandwich, which was invented by Truett Cathy, the founder of the chain and also the inventor of boneless chicken sandwich. After experimenting for years, he created the perfect chicken sandwich recipe in 1964. The restaurant chain’s name is adapted from “chicken fillet”, with the capital “A” meaning “grade A top quality”.
Chipotle and Qdoba each have their similarities and differences. Dating back to the 1990s, Chipotle and Qdoba were both created within a few years of each other. Each restaurant classifies itself as a “Mexican grill” with an assembly line style of ordering. Though Chipotle and Qdoba have the same restaurant set up, they differ in price, product choices, and advertising. The prices between Chipotle’s and Qdoba’s meals differ.
This visionary thinking, restaurant design, creative menu, and business model has led to Chipotle accomplishing great things, such as growing from a single restaurant to over 1,400 in just 20 years, and serving more naturally-raised meat than any other restaurant
Chick-fil-A is an American fast food chain headquartered out of Atlanta, Georgia that specializes in chicken and chicken sandwiches. The founder, Truett Cathy, started the franchise in May of 1946 and today there are more than 2,000 restaurants across the Southern U.S. Although some people disagree on the religious views of the franchise, the great food, excellent customer service, and overall family atmosphere keep people coming back for more. Truett Cathy, Chick-fil-A’s founder, started the franchise on the basis of Christianity.
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.
All over the world the delicious burrito has been advertised. With the new breakfast burrito from Taco Bell and the varieties of them you can make from Chipotle it is hard to think of how people can live without it. Although they’re many ways to make a burrito the enticing factor that the burrito has is that every burrito you have is unique in its own way. Either if you prefer to put hot sauce on yours or like to put shredded cheese there is something about the food that invites people to make this traditional Mexican oriented food their own masterpiece.
Brands, 2017). Although the market positioning of Taco Bell differs from that of Chipotle, Taco Bell could still be a key competitor of Chipotle, especially in the U.S., since Taco Bell also offers Mexican-inspired food items to the
I just want to figure out what is so great about these two places, and figure out how they are the same, and how they are different. There are many people in the world that are in love with Chipotle. They even have there own chipotle rewards card because they go there so much. So, lately I visited Chipotle, and I tried out all of their signature food that people are always raving about.
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.
Then in 1998, McDonalds invested $360 million into Chipotle, allowing it to expand rapidly. The Chipotle Mexican Grill experience is an introduction to fast food 2.0, a new version of chain eateries that focus on quick, fresh, and hip food for us young people. Focusing on fresh ingredients, Chipotle’s ingredients are organic and their meat is not contaminated with chemicals, unlike most other fast food chains. When I step up to the counter, I notice a refrigerator filled with drinks. With a full liquor license, Chipotle also
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,
-Low threat of new entrant ( High input costs ) Threats -Input costs are increasing and fluctuating (beef price is rising and some ingredients such as wheat price is fluctuating) -All the restaurant’s segments are competitors and are not only competing at their own segment but also with other segments (e.g. Chipotle Competes with meals prepared at home as well as frozen or packaged food items available in supermarkets) -People reduce eating out spending economics recession and this might affect Chipotle -Competitor’s pricing strategy – competitors such as Taco Bell are offering similar products with reduced prices to compete for Chipotle’s market share -High threat of substitute fast food ( variety of choices for consumers) Situational Analysis for Chipotle Alternative Actions and Evaluation of Alternatives Alternatives Pros Cons 1. Differentiation Strategy by “ Food with Integrity” ( current Strategy) -Differentiate from competitors -Get more attraction because of unique style of serving -Rising food prices -Need for more produce as raw material inputs -Low awareness than other brand due to their marketing style of loyalty and word of mouth