Chipotle Case Study

For this discussion, I have chosen a company that’s a lunchtime favorite in my office—Panera Bread Company, a steadily-growing national restaurant chain headquartered in Sunset Hills, Missouri. Ron Shaich, the creator of Panera Bread, joined with partner Louis Kane, the founder of the bakery-café chain Au Bon Pain Co., Inc. (ABP). In addition to ABP, Mr. Shaich started a “fast casual” sandwich shop that he eventually named Panera Bread, and once ABP was sold in 1999, Mr. Shaich focused on growing the Panera Bread brand. Within the next 15 years, Panera Bread practiced a slow but steady growth pattern and there are now more in 2,300 Paneras in the United States (Panera Bread Company, 2017).

1 a) Do you think CMG ought to consider an advertising campaign? Why or why not? If so, what should be the focus of the ads? Celebrity endorsements, the humane treatment of animals in its beef, etc…?

In 1993, the first Chipotle Mexican Grill restaurant (pronounced chi-POAT-lay) in Denver, Colorado was opened by CEO and founder, Steve Ellis after he received $165,000 in investments from a bank loan and his father (Pederson). Ellis, a Culinary Institute of America grad and former chef, started the company’s first restaurant to raise money needed to one day operate his own full-service restaurant (Berta). The company’s menu includes burritos, tacos, salads and burrito bowls (burritos without the tortilla) made with customers’ choices of pork, shredded beef, chicken, steak, beans, veggies, and burrito condiments (sour cream, salsa, etc.) (annual report). When Chipotle was first established, Ellis did not like the restaurant’s closed

Chipotle’s strategy is focus on the selected menu that they can provide best to the customers. Also, differentiate with other fast food restaurant such as Taco bell. Chipotle’s competitive advantage is related with the differentiation. They are in the fast-food market, but offer fresh, local produced ingredient and no hormones added to their meat and other dairy products. Therefore, customers who seek integrity, they will go to Chipotle for Mexican fast food.

Chipotle is facing numerous challenges due to the fact that E. coli outbreak which requires the corporation from the key stakeholders to keep it under control and apply the new food safety protocols which can aid to bring the regular customers back. Although the main cause remains a mystery, Chipotle’s E. coli outbreak has been authoritatively declared officially over by the experts. However, since the poisoning outbreak, the impact of the reduced number of customers affects the profit which the company used to enjoy before such eventuality (Scholes 27).

This includes the 5Cs, SWOT, and Porters five forces. The 5Cs analysis include the company, customer, competitors, collaboration and climate. Starting with the company, Chipotle started by offering high quality food at an affordable price. They use a focus differentiator strategy, due to their focus on its target market of millennials and the high quality that no other fast food place had. Most of Chipotle customer base are from the age of 18-32, who want a high quality food at reasonable prices. The industry has over 200,000 fast food restaurants in which 50 million Americas eat at daily. Chipotle has established a collaboration with its suppliers, especially it farmers. They focus on the way that farmers care and slaughter their animals, which gave farmers, animals, and it environment the respect it deserves. Chipotle has collaborated with McDonalds on 1998, before they became public. McDonalds departed from it relationship once Chipotle went public, and invested about $360 million with a return of $1.5 billion. During the time the climate of the industry was a low cost and fast service, with little thought of quality. Chipotle established a new environment that focused on quality, healthier choices, and consumer power. This new climate was copied by many other companies in the industry, but chipotle was the first to try to change the culture of the fast food

Hello I'm Khachik, I'm a 16 year old high school graduate who would like to know the reason I was rejected at my local Chipotle I'm no regular 16-year-old I worked hard to finish school at 16 and am working harder to further my life into a stable state the General Manager at my local store was really impressed on my background and she even said she hasn't seen a 16 year old like me also stating she hasn't talked to someone as "interesting" as me in around 5-6 years (her words not mine) that was on September 9th during Chipotles Career Day honestly I just really want to know why I was rejected if she liked me I could personally say I'm more qualified than most of the other candidates because she said some other people who she interviewed didn't

The purpose of the case study is to evaluate the waiting line queue at Chipotle Mexican Grill and analyze balking and reneging and how that affects future sales of the company. Chipotle Mexican Grill has been open for 24 years. Steve Ells CEO and founder opened the first store in Denver, Colorado. Chipotle currently has 2,250 stores and is the second largest Mexican restaurant chain in the United States following Taco Bell. When they first opened their motto was simply; “show that food served fast didn't have to be a “fast-food” experience”.

This paper explores the mission, vision, values and principles of Chipotle Mexican Grill that guide them in the restaurant industry. Their key mission, vision, and values revolve around providing food with integrity and changing the way people think about and eat fast food. Chipotle’s principles include sticking to the basics of a simple menu and uncomplicated, interactive employee roles.

Overall Chipotle’s financials look good, however their VIRNE shows that they lacking in rare, inimitable, and nonsubstitutable products in their business model. The competitive strength analysis leans heavily in their favor, with Chipotle scoring high in all four of the KSF categories; beating Taco Bell by 2.9, Moe’s by 0.8, and Qdoba by 1.2. For Chipotle’s go-to-market strategy I recommended that a few things that they could work on are: focus more on food costs, and less on focusing on the organic food market, however that would harm the brand that they have built as being “Food with Integrity”; focus more on their other restaurants: The Shophouse and Southeast Asia Kitchen; however, they would then run into new competitors, such as Panda Express; as well as expand their current menu, possibly adding breakfast, this is probably the most feasible for Chipotle right now because of cost, and it was actually discussed in 2014.

The Chipotle Mexican Grille opened its first store in 1993 beginning a new category in the restaurant industry known as “fast casual” (About Us, 2014). This new category featured the “highest quality raw ingredients, classic cooking methods, and distinctive interior design-features that are more frequently found in the world of fine dining.” However, aside from the normally long wait in lines, an order could be taken and served in only a couple minutes. Currently Chipotle operates more than 1,500 restaurants internationally. The following pages will present a balanced approach to the effectiveness of Chipotle’s strategy analyzing financial performance, customer satisfaction, employee/learning and growth, and internal process.

Management is the backbone of any good company. In order for a company to successful, a strong management team is needed in order to meet goals in an effective and efficient manner. Chipotle opened its doors in 1993 when Steve Ells took a chance and began his business in San Francisco. Chipotle is a chain of Mexican restaurants that is based in Denver. Chipotle is often cited as the company that started the fast casual movement where customers can get a healthy prepared meal quicker than other traditional styled restaurant. The fast casual restaurant concept was well received and Chipotle’s popularity expanded all across the United States. Customers could not get enough of the Mexican chain and massive lines could be seen stretching outside the stores all across the country. Along with its popular food, Chipotle Mexican Style Grill is a company that contains a successful management style. Why? What sets this companies management apart from the rest? There are many factors that we could analyze to understand the success of Chipotle, yet for the purpose of this paper, we will look into the cooperate culture of the company, human resource management, their leadership style, and how Chipotle deals with and how the company manages in times of crisis.

The purpose of this report is to present a strategic plan created for Chipotle Mexican Grill, Inc. (CMG). The strategic planning process began with an internal analysis to better understand Chipotle’s current mission and vision statement, and its effectiveness in leading current strategy and performance, and included analysis of Chipotle’s strengths and weaknesses, and trending financial position. External environment analysis was also conducted, to better understand the industry and its competitors. Results of the internal and external analysis were used to determine strategies for maintaining a competitive advantage. Recommendations and an action plan for strategy implementation are suggested, as well as, an evaluation plan

2. What does a SWOT analysis reveal about the attractiveness of Chipotle Mexican Grill’s situation and future prospects?

Mission – By delivering uniquely flavored Mexican style food at budget prices, Taco Bell seeks to establish an international presence over the next 5 years. The current international fast food markets in Asia, South America, and Africa are dominated by American style fast food which leaves considerable opportunity for competing styles of cuisine, Taco Bell will use an aggressive marketing plan and develop a supply chain network that will enable rapid growth in overseas markets. Newly established restaurants will be able to supply local communities with quality meals at competitive prices while simultaneously creating value for shareholders.