Chipotle: Customer Power In The Fast Food Industry

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. Yes, Ells, could still chase his lifelong dream of becoming a chef of his own personal restaurant, but that would mean he would have to

Sondra Simpson’s article “Chipotle Mexican Grill Inc.: Strategy with a Higher Mission or Farmed and Dangerous?” alludes to portraying a controversy involving the popular Mexican fast food chain Chipotle and the agricultural industry, but it reads more as a testament to the restaurant’s environmental and marketing achievements. The introductory paragraphs lead us right into a brief explanation of the issue at hand, as well as Chipotle’s intentions and opposition. Simpson hooks her readers with inciting blog titles illustrating the overall feelings of Chipotle’s offended adversaries, such as, “Boycott Chipotle: My Farm is Not Dangerous” and “Chipotle Unnecessarily Tears Down Agriculture to Build a Brand” (qtd by Simpson p 38). These blog posts describe the agricultural industry’s reaction to Chipotle’s latest attempt at spreading their corporate message through a series of webisodes titled “Farmed and Dangerous.” These webisodes were co-produced by Chipotle to demonstrate “the most negative aspects of industrial farming. . . . such as antibiotic overuse and fossil fuel dependence in food production” (38). Chipotle asserts their intentions were to get people thinking about

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 !! :-

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. 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.

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. Some critics say that Chipotle is just phase, and it will pass over soon, but there has been stores before Chipotle became popular.

Their prices on petroleum allow them to be a substantial substitute in the industry because of the low switching costs. Consumers are also able to go to other quick service restaurants that either stand alone or operate in another convenient store.

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.

Chipotle matches a young peoples life style. In our research we found that while some young people enjoy cooking they find they just don’t have the time to prepare something all that healthy. This is where they turn to something quick and easy without compromising on quality. We found in our findings that half the participants eat out more than five times a week. One of our participants eats out to chipotle 3 times a week! 

1. It is clear that Gen X and Millennials have established Chipotle as part of their pop culture. With videos out there like “Chipotle is my life” as mentioned by one of participants which went viral it is clear that when young people are getting hungry chipotle isn’t far from their mind. Sometimes when things go viral or

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 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 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.

The sensitivity analysis focuses on examining how Chipotle’s valuation changes when some key inputs vary.

Chipotle Mexican Grill founded in 1993 by Steve Ells became known as the fast-casual dining in the restaurant industry (Hitt, Ireland, & Hoskisson, 2013). It was the first of its kind when Ells first opened his first restaurant and brought the idea of made-to-order burrito. The concept is so simple, and the consumer is in control of what ingredients goes into their burrito. “The immediate success from Ells’ first restaurant allowed him to repay the $80,000 loan that he borrowed from his father within a month of opening” (Hitt, Ireland, & Hoskisson, 2013, p. 71). Furthermore, this gave him the confidence to open his second restaurant in just two years.

Apple has always surprised the world with its innovation starting from the invention of computer circuit board of Apple I in 1976 to world’s most successful personal computer and electronic device manufacturer. They brought revolutionary changes in user experiences in using personal computers and currently smart devices. The company was always under the supervision of visionary leaders and effective strategies applied by them made the Apple what it is today. The company faced several ups and downs during its operating timeline and remained successful in sustaining their position in the market as a leader. The Harvard Business School Case study of Apple Inc. focuses on the growth and strategic management of the company accordingly.

Tellthebell.com is a survey website where customers can take part in the Customer Survey Sweepstakes. Here customers of Taco Bell give their valuable feedback; it is basically a Taco Bell’s customer satisfaction survey. In this survey they offer the opportunity to enter the sweepstakes and a chance to win $500 each month. Taco Bell gives such a great service for customers to share their feedback; through survey they determine how to make improvements in their services.