Both McDonalds and Chipotle provide fast food services. However, while they share some similarities in terms of belonging to the food industry, utilizing the concept of time to woo their customers, and emphasize on healthy alternatives, the two differ in their business practices and model, types of food that they offer, the efficiency, and extent that they have managed to influence and shape the perception of the consumers.
Both McDonalds and Chipotle are restaurant chains that aim to provide fast food services to individuals on the go and highly emphasize timeliness of service as its major selling point. Besides both restaurants being in the food industry, the two restaurants emphasize the speed of their services as a selling point. As a quick service restaurant, McDonalds aims at reducing the time that its customers take before they are served.
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One difference is the size of McDonald compared to Chipotle. According to Lutz, McDonald is far much larger compared to Chipotle and this is evident in their revenues that were $844 million for Chipotle and a staggering $28.1 billion for the McDonald chain. Brown adds that while Chipotle had 1500 stores by end of 2014, McDonalds had 14,000 stores. This shows that McDonald is almost ten times the size of Chipotle in terms of the number of stores.
Another difference is the choice of menu that both chains offer. McDonalds has kept changing its menu as evidenced by the fact that the restaurants menu has grown by over 70 percent since 2007 (Lutz n.p). Chipotle has retained the same menu that it started with and only made very insignificant changes to its menu items. Besides the menu, the service level and approach are also different. The food offered at Chipotle is made to order rather than pre-assembled, as is the case at McDonalds. Unlike McDonalds, Chipotle places an emphasis on well-decorated restaurants and comfort for its
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.
As the locations increased, Steve made the decision to fine tune the menu and decor of his restaurants, one of the changes that he made was to switch to free-range pork for its carnitas (2012). Free range pork means that the pigs have been allowed to roam freely and was not feed antibiotics (2012). Success continued for the Chipotle industry, by 2003 restaurant locations grew to 300 with revenue totaling $321 million (2012). Chipotle greatly increased McDonald’s growth avenue; however, in 2006, McDonalds divested from Chipotle at the price of $1.5 billion (Wikipedia, 2011). Hoover (2014) asserts that Chipotle’s top competitors are Panda Inn, Inc., Taco Bell Corporation.
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!
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.
There are many industries in America and around the world that are competitive, such as the Airline industry, Music, Gas and so on so forth. But one of the most competitive industry is the Fast Food industry. There are two major companies within the hundreds of food chains who run the market on top, these companies are McDonald’s and Wendy’s. Both of their originations produce a similar kind of product, such as burgers, salads, and other various alike foods along with competitive prices against each other. McDonald’s and Wendy’s however, both have different outlooks on their products and mission statements.
Everyone can agree that all food establishments have different feels to them. Whether it's a fast food chain or a luxury dine-in restaurant, each and every food service has a distinguishing atmosphere that either enhances or diminishes one’s dining experience. For example, taking the first step into a McDonalds, one is overcome by a bustling environment full of customers from all age groups, specifically that of children. This family friendly restaurant is known for its fast and painless experience at an affordable price. Ultimately, these factors make McDonalds unique and different from other fast food chains.
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.
Chick-fil-a sells 3 times as much fried chicken as Kentucky Fried Chicken does. McDonald’s Chicken is not as good as Chick-fil-a chicken. It is in a cardboard box that allows the heat to leave and make it cold, but chick-fil-a’s chicken comes in a insulated bag that traps the heat. McDonald’s also puts much more sugar in their bun and chicken which makes it not as healthy or tasteful. Popeyes and Chick-fil-a are both competitors because they are both fried chicken franchises.
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
Given its importance, there is a great emphasis on diversity at Wendy’s and McDonald’s. McDonald’s has numerous options at their restaurants across America. They possess a large selection of items for consumers to choose from. These options can range from chicken sandwiches, hamburgers, salads, and nuggets. The restaurants also include a wide array of drinks which can range from sodas to iced coffee.
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.
Abstract 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.
-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
Risk Analysis When it comes to risk every business and person has to deal with it, so as you may guess McDonald’s is not excluded from that list. When you are in the food industry and especially the fast food industry you take on many risks. These would include things like competition, changes in customer preferences, pricing, staying technologically advances, and not losing out on investments. As a huge company like McDonald’s you may think that their risks are minimal, they bring in millions every year, and McDonald’s are always successful and busy, but they too have a long list of risks on their 10-K. After reading through McDonald’s list of risks I want to first say that they are very broad in many of their risks.