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
Chipotle implements this differentiation strategy by promoting green farm to table. In order to spread awareness they launched an initiative to change the way people think about what they eat. At the same time they were able to build on their “Food with Integrity” vision. Also, in 2011 they had the “Cultivate a Better Worlds” campaign which aimed to tell consumers why Chipotles sources sustainable foods. They also created a Cultivate Foundation which focuses on providing farmers with sustainable resources to farmers while encouraging regenerative agriculture practices
A. INTRODUCTION Chipotle Mexican Grill is a fast growing restaurant chain in the fast-casual dining industry. Fast-casual dining is currently the smallest segment of the restaurant industry with only holding 4% of the market (Hitt, Ireland, & Hoskisson, 2015). However, it is the quickest growing segment and Chipotle has managed to successfully capitalize on that growth. Since its founding in 1993 and going public in 2006, Chipotle has managed to hold onto a steady customer base and make profits due to their goal of offering inexpensive quick food without compromising on their high-quality sustainable ingredients.
Therefore, Chipotle is seeking better food from using ingredients that are not only fresh, but that are sustainably grown and responsibly raised with respect for the animals, the land, and the farmers who produce the food. Today, Chipotle continues to offer a focused menu of burritos, tacos, burrito bowls (a burrito without the tortilla) and salads made from fresh, high-quality raw ingredients, prepared using classic cooking methods. True to the tradition of French cooking, Chipotle insists on fresh products—not canned, frozen or
Chipotle Queso: The Key to Happiness Growing up I loved the flavors of Chipotle; the smoky meats, the charred peppers and the blend of delicious sides. One may ask why choose this advertisement for a company like Chipotle, because of the many persuasive images, textual messages, and vibrant visuals found in this mouthwatering piece. I consider this advertisement similar to an urgent announcement in which Chipotle is warning their customers to get excited that they finally have queso. Each and every day society craves food and as we all know, Chipotle competes with multiple restaurants in the mexican fast food field. My question is, what makes Chipotle stand out from the rest?
Serving clean food from organic growers with no GMO in the food made Chipotle the number one go to green restaurant. In order to be effective, a company must close the gap between the firm’s situations and its stakeholders’ expectations. In this case, the most affected stakeholders in regards to the food poisoning where chipotle customers and employees. Responses The main ethical issues arise from a bad management behavior towards food policies. First of all, as the company boasts to offer fresh, real and responsibly raised ingredients, they must have been concerned about purchasing foods that meet the compliant standards.
Those who are not concerned say that Chipotle is generally fresh and has better quality food than many other fast food restaurants. They also believe that the chances of getting food poisoning at a restaurant are slim . Nevertheless, Chipotle was not able to avoid criticism. Earlier this month, a group known as the Center for Consumer Freedom went on the New York Post. There, the group posted an ad that mocked Chipotle by saying, “You can't spell Chipotle without E. coli.” Of course, the victims of the illnesses were not pleased with Chipotle.
Sensitivity Analysis The sensitivity analysis focuses on examining how Chipotle’s valuation changes when some key inputs vary. Two of the most important inputs of the valuation are the weighted average cost of capital (WACC) and the perpetuity growth rate. In this thesis, it is assumed that Chipotle would have a WACC of 6.65% and a perpetuity growth rate of 2.84%, which would result in a share price of $443.90 for Chipotle. In order to determine the impacts that changes in these two inputs may have in Chipotle’s valuation, a sensitivity analysis is conducted by varying the WACC and the perpetuity growth by 0.25% consecutively while keeping all other inputs constant. The next table shows how Chipotle’s price per share varies when the perpetuity
Case Analysis 3 Chick-Fil-A Summarize current strategy Chick-fil-A has advantages over chipotle. For one it is more like fast food including a pick-up window where chipotle you must go in to order. On top of this Chick-fil-A is a higher quality food than many other fast food restaurants. At a business-level strategy include advertising and marketing to help increase brand recall. At a corporate-level strategy includes established brand in U.S., sponsorship to numerous sports events, and successful advertising campaign- ‘Eat morchickin’.
CRegardless of Chipotles strengths, the company has encountered some weaknesses as well. In respect to future growth, Chipotle has seen some growth and are profitable, but there are some crucial factors that could be a warning sign of possible challenges. Chipotles principal weakness is its limited menu choices; there are basically customizable items on the menu that customers can order. Chipotle will have to offer more options to customers or increase marketing strategies; the main goal is to gain and retain customer confidence. Additionally, highly priced food items are another concern for Chipotle.