Chipotle Core Competencies

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3. Resources (financial, human)
Chipotle’s outstanding financial and operating performance has made it one of the restaurant industry’s leading companies. It has shown consistent growth trends and impressive operational data. Since 2007, Chipotle has shown revenue growth at an average rate of 20.2% with net income also growing at a compound rate of 32.1%. Between 2007 and 2011, average sales grew by $928,000. In 2006, Chipotle went public with the initial offering price set at $22 per share. As of late 2012, Chipotle’s stock has traded in the upper ranges of $380 to $385 per share. In the 2011 fiscal year, Chipotle’s financial power became more evident, starting with an impressive Operating Profit Margin of 15.45%, which climbed by 5.49% since …show more content…

Chipotle’s competitors have a difficult time competing against or imitating this competency because the times on Chipotle’s menu are tested and proven. Competitors don’t have the time or ability to test this concept or perfect their menu items. Chipotle on the other hand has been able to apply this limited menu style to the other ventures such as their two Shop House locations in Washington D.C. Another core competency, shown in Figure 1, is their dedication to high quality ingredients such as the organic cultivation of produce and naturally raised meat. Chipotle meets high customer expectations with their ‘Food with Integrity’ campaign. None of Chipotle’s competitors have taken as strong of a stance, nor have they moved as quickly to increase their efforts for sustainable, humane cultivation of their ingredients. Chipotle has and continues to lead the way in this area of fast-casual dining. Another key factor to the success of Chipotle is the speed and effectiveness at which their friendly and multi-skilled crewmembers serve customers. Crewmembers are trained at every position so they are able to jump in and help any other member at any time during preparation or service. The crewmembers, along with the serving style maximize efficiency because the crew is energized and motivated to move customers through the line while working as a team. Competitors have a difficult time imitating this largely in part due to the distance between their

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