B. General Statement: Fast food industry has grown dramatically and become so popular. According to the research, people spend more money on fast food than the education. McDonald, Burger King and Subway are the most popular fast food company. C. Thesis statement: Popularity of the fast food are getting an increase due to easy and quick service, inexpensive meanwhile there are also consist of negative effects if the fast food is becoming more common in society.
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. Even though the restaurant industry has a lot of competition, Chipotle has found a stronghold against its competitors. They have managed to continually attract investors through their fast growth and large profit margins, and consumers through their low prices and food with integrity mission. B. EXTERNAL ENVIORNMENT: STEEP ANALYSIS Social There are two main social trends that have a direct impact on Chipotle.
Fast food companies have demolished competition throughout the last 30 years in the restaurant industry. The practices used to eliminate competition such as using unhealthy food to make a profit have been reported unethical by Americans, but it tends to be desired by the American society. According to the American Franchise Corporation, certified by TrustArc, fast food companies generate $570 billion annually in the United States ("Fast Food Industry Analysis"). These statistics continue to rise as more and more fast food companies become ubiquitous. As a result, fast food companies get richer, while people contract life-altering health effects.
First, the following quote shows how fast food is becoming more accessible to people. “ In 1970, Martinsburg had six fast-food restaurants; today it has more than forty.” (McJobs by Eric Schlosser and Charles Wilson) This supports my claim because it shows how fast food has become more accessible to all people and this is good because fast food is a valuable source of food for some people. The fact that more than a third of american kids eat fast food every day proves that. (newsweek) Second, the following quote shows that fast food companies produce consistent and inexpensive food for people. “The strict rules at fast-food restaurants help to create food that always tastes the same.
The company selected is Chipotle Mexican Grill (CMG). Founded in 1993, CMG is a fast casual Mexican restaurant focused on using fresh, healthful ingredients. CMG went public in January 2006 (Fedenia & Hirschey, 2009). Chipotle Mexican Grill operates 1,600 eateries both nationwide and internationally (Standard & Poor’s, 2016). In regards to industry conditions, Standard and Poor (2016) noted a positive outlook for the restaurants sub-industry.
They plan to slowly convert to full organic and natural ingredient by going in increments to slow adjust their business and customer to change. Bargaining Power of Buyers: High In the restaurant industry the customer has high power because of how saturated the market is. Although they have very little control over the price of products, they have low switching cost that allows them to seek the best price. With the numerous restaurants available to customer, it gives them the power to choose other places to eat besides Chipotle. Also, Mexican restaurants like Taco Bell and Qdoba gives customers a substitute for Chipotle’s food.
And achieve as a result, the grow for its brand, market share, and sales revenue. Key Issues for Chipotle Chipotle is quite strongly positioned fast casual segment but it is facing increasing competition from the quick service restaurants such as Taco Bell that are looking to compete for the market share. These quick service restaurants are trying to attract fast casual customers by providing similar products at a lower price which is a threat to
However, people assimilate McDonald’s to junk food unlike the ”Subway buster”. Will McWrap help McDonald’s sustain competitive advantage? As McDonalds is known for being a quick-service restaurant, it attracts mostly customers who want quickly made food. I believe that the McWrap is slowing down the service, which exacerbates the brand. The speedy service is one of the main qualities of McDonald’s, and is one of their biggest competitive advantages.
According to fast food chains, the food service industries that offer the highest levels of convenience have been rewarded with strong sales growth(fastfoodchains). One of the main factors of why people eat fast food so much is maybe that’s what they can only afford. One of the greatest advantage of fast food is that it saves time. When a person does not have enough time for cooking it is very convenient to buy it already made. Moreover, buying fast food is more handy while travelling.By making those convenient, make a change and expand the menu restaurants to more nutritional
Sadly, it is this choice and freedom that have brought society to a crossroads. The time has come where we must decide to eat healthy or have good taste and accessibility. Fast food will harm one way or another. For example, Chipotle, a Mexican grill, provides consumers with high quality burritos and salads. To society’s dismay, they have been linked with an E. Coli outbreak.
More importantly, the significant challenges facing this company is the treats of the new restaurant 's entrance to the fast-food industry and the domestically owned restaurants. Chipotle 's competitors such as Taco Bell and Chili 's restaurants can offer Mexican food at a lower cost, and they both have a quick service to their customers. However, locally restaurants can offer their customers the food they want because they have a chef who makes it. Another treat that Chipotle will face is the increase in labor cost because employees demand a higher salary. According to the MarketLine about Chipotle Mexican Grill, Inc. SWOT analysis "The federal minimum wage rate in the US, which remained at $5.15 per hour since 1998, increased to $5.85 per hour in 2008."
Morgan Spurlock, an American Independent Filmmaker embarked on an experiment of eating only McDonalds for thirty days. He documented his findings in a documentary titled “Supersize Me” As a result, Spurlock gained nearly twenty-five pounds, and his body mass increased almost fifteen percent. The reason behind Spurlock’s investigation was to identify the problem with our countries rise in obesity, largely contributed to a lack of fresh and healthy food being available. Obesity is an epidemic plaguing our country ever so quickly and one of the biggest reasons for it is many communities don’t have access to fresh food, and in many times that food if available exceeds the families budget. The United States Department of Agriculture (1) defines