Swot Analysis Chipotle Mexican Grill

864 Words4 Pages

Chipotle Mexican Grill was founded in 1993 by Steve Ells in Denver, Colorado. The founder attended the Culinary Institute of America in Hyde Park, New York. He had some experience as a line cook in Jeremiah Tower at Stars, San Francisco. Steve Ells opened the first Chipotle near the University of Denver campus with a loan of $85,000 from his father. Chipotle has approximately 1783 outlets in the world as stated in the 2014 annual report. Their menu offers Mexican food such as burritos, fajitas and tacos. The idea behind this restaurant was to show the customers that food served fast did not necessarily have to be of 'fast food' quality. The company uses high quality raw ingredients, classic cooking techniques and distinctive interior …show more content…

By identifying the CSFs, the company may create a common point of reference to help guide and measure the success of a business.
Cost:- Companies constantly face pressure to reduce the cost of the products and services they sell. The company must know the cost of producing the good and what consumers are willing to pay for it. Managers can calculate a target cost for the product by subtracting the operating income per unit of the product, that the company wishes to earn from the target price. In order to achieve the target cost, managers may eliminate some activities such as reduce costs from research and development to customer service. Global competition further increases pressure on companies to reduce costs.
Chipotle offers very reasonable prices for its high quality product. An average customer check for a meal is about $8.50. This company is able to provide food at a lower cost mainly because of a fast preparation time of the food and few employees used in the …show more content…

Chipotle uses high quality raw ingredients, classic cooking methods, a very distinctive interior design of their outlets and friendly employees to take care of their customers. The company claims to serve meats which are raised without the use of non therapeutic antibiotics or added hormones and are in accordance with the criteria they established in order to improve sustainability and promote animal welfare. They brand their meats as "Responsibly Raised."
Timeliness:- Time mainly is based on two types, namely new product development time and customer response time. The former emphasizes on how the increasing pace of technological innovation has led to products having a shorter life cycle and more rapid introduction of new products. The latter refers to the speed at which organizations respond to the customers. A reduced delivery time is always beneficial for the company as it increases customer satisfaction. So the companies should avoid bottlenecks which may be a big reason for

Open Document