Chipotle Mexican Grill Essay
Case 8, Chipotle: Mexican Grill, Inc.: Food with Integrity and current news articles highlight specific challenges the company is facing. To begin, CMG’s announced that food costs were expected to increase in the near future. Following the announcement, the company’s stock fell by nearly 12%, which significantly decreased its stock price. This presented a major challenge for the company, because its food costs were already above average. As a result, Chipotle must continue to find innovative methods to operate its business. These methods must allow them serve products with quality ingredients at affordable prices. Its success is largely dependent on its "food with integrity" values. Another challenge for Chipotle is its two major competitors …show more content…
The first challenge CMG is facing is increased food costs. To overcome this challenge, the company should invest in more independently owned and operated farms. It 100% has to maintain its “food with integrity" values because its success is largely dependent them. The second challenge the company is facing is slow sales growth. With this, I recommend that Chipotle expands both in the United States and internationally. It needs to branch into untapped markets in order to gain more market share. The third issue for Chipotle is with its supply chain. It needs to find reliable and affordable supply chains with premium quality ingredients. It may be able to find this supplier in the international markets. The fourth challenge presented for Chipotle is its current reputation crisis. To overcome this challenge, I recommend that the company has a public apology. It needs to take credit for its wrong doing with a clear message to the media that states how the food was inflected, how many store were affected, and how they are handling the situation. This is the best recommendation I can give Chipotle because they must offer confidence that these problems will not occur again. In addition, the company needs to tighten controls on supplies and increasing testing procedures and safety regulations. In summation, these all the recommendations I can make to strengthen the company’s
Swot Analysis Chipotle Burrito
1573 Words | 7 PagesChipotle is extremely vulnerable to supply shortages. Considering the fact that their brand is built on the quality of its ingredients this is a problem. Their brand, cost premiums and a large component of their value proposition is built on and contingent on providing a product requiring inputs that the do not control ( Chipotle Mexican Grill, Inc. SWOT Analysis) . Irregularities in the work
Chipotle Review Process
493 Words | 2 PagesIn the near past, chipotle was owned by Mcdonald's, suddenly their CEO decided to separate from them due to the bad quality of the mcdonald's food industry. Chipotle over the years tried to make their food as the most fresh and best when it comes to the quality of the food and they have been succeeding in their plans. After finishing classes that day, I didnt have much time for eating lunch so my options were not a lot, which is why I chose chipotle. I had a couple of friends with me, and we ordered several orders to share. To try the best thing they had.
Chipotle Food Poisoning Is Wrong
483 Words | 2 PagesSince news about the Chipotle food poisoning broke, a lot of people became more concerned about the food they eat. The public began to realize that even renowned brands and giant food chains can also be the breeding ground for the next food related fiasco in town. Because of the two outbreaks of Norovirus (a virus that causes diarrhea, vomiting, body pains and fever among others) in Simi Valley and Boston, two E. coli outbreaks, and one Salmonella outbreak in Minnesota, Chipotle is now facing rapid drops in their food revenue, a decline in their stock value, a criminal investigation and a lawsuit.
Informative Essay On Chipotle
1448 Words | 6 PagesChipotle 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.
Chipotle Mexican Grill Essay
667 Words | 3 Pages" This shows that, Chipotle success comes from the use of classic cooking, distinctive food design, and fresh ingredients. Furthermore, Chipotle brought back the Mexican food to the American customers so that can people experience with different food that is not typical of their culture. Moreover, "Today, the chain boasts more than 1,550 units and holds a market capitalization of nearly $16.7 billion... Chipotle is not only the undisputed leader in the growing fast-casual space, but also an increasingly emulated brand (Jennings, L).
Chipotle's Argument Analysis
2002 Words | 9 PagesThe moment I tried placing an order in Chipotle, my fantasy of American life shattered. After finding my three massive pieces of luggage from United Airlines’ baggage claim, I entered Chipotle to satisfy my starving stomach after a seventeen-hour flight. I waited around ten minutes in an excitement to try the renowned Chipotle burrito that everyone talked about. However, it took me less than ten seconds to decide to leave the place. I was trembling in frustration as I left the place.
Analysis Of Chipotle's Sensitivity Analysis
1385 Words | 6 PagesAnd considering Chipotle’s past financial results, Chipotle’s 2016 financial performance, affected by the illness outbreak, was clearly an outlier. Hence, as 2016, some valuation multiples may not be suitable for the valuation of Chipotle. A clear example of inadequate valuation multiples could be the P/E ratio. Taking into account that Chipotle closed at $377.32 as 2016, it seems to be that even the most bearish investor would not believe that Chipotle would only be worth $20.68 per share, as suggested by the average of the P/E
Personal Narrative: Chick-Fil-A Vs. Chipotle
729 Words | 3 PagesChick-Fil-A vs Chipotle: Which one is better? Many people lately have been raving over Chipotle, and Chick Fil-a lately. I have always thought to myself what is so great about these two food chains. Many people like Chipotle, and then there a a lot of people that love Chick-Fil-A.
How Has Chipotle Changed Over The Last Three Years Ago
1354 Words | 6 PagesOver the years, Chipotle has kept a lot of things constant. Why? Because they want their customers to come back with the same expectations and satisfaction. To evolve is the only way for a company to grow. Apparently that is all it takes to have fast casual restaurant.
Chipotle Research Paper
935 Words | 4 PagesThen 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
The Pros And Cons Of Qdoba Mexican Grill
1191 Words | 5 PagesAnother reason why I love Qdoba Mexican Grill is because of the free extras. In the last year Qdoba has made any additional ingredients you want on a burrito free. Qdoba changed their price structure to all-inclusive in which the price only depended on the type of meat you wanted, but included all of the extras that previously required an additional charge, such as guacamole and queso sauce. Being able to have extra queso on your burrito with no extra cost is something that may people enjoy due to the fact that Qdobas queso is so good.
Chipotle Core Competencies
682 Words | 3 PagesThe fourth one is having friendly people take care of each customer. Lastly doing all of these with increasing awareness and respect for the environment, the use of organically grown fresh produce, and meats raised in a humane manner without hormones and antibiotics. The biggest strength Chipotle has is that its product is customizable. They have a kind of assembly line the customer can walk down and choose what
What Is Chipotle's Differentiation Strategy
552 Words | 3 PagesChipotle 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.
Analysis Of Chipotle Mexican Grill
2699 Words | 11 PagesThe following paper will examine the organizational structure of the Chipotle organization, diagnose problems,
Pricing Strategy Of Chipotle
1450 Words | 6 Pages-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
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