Essay on Chipotle Balanced Scorecard

The purpose of this project is to tie together the various topics in microeconomics that are discussed during the semester. The project involves an analysis of a particular product or service, a company that produces the product, the industry that produces the product, and an industry that produces a raw material or input used in the production of the product you choose to analyze. Choose any final good or service (no basic commodities, although this could come in the analysis of an input market). Use this as an opportunity to gain knowledge about the economics of a product or service that interests you.

Two Mexican restaurants; Chipotle and Qudoba. People say both taste great but many people choose one versus the other. Working at Chipotle, I get a lot of pros and cons about Qudoba and Chipotle. Some people don’t like that our guacamole isn’t free. People always say “why don’t you be like Qudoba and have your guacamole free?” and I always tell them “our guacamole is organic, handmade. I would know because I make the guacamole.” Chipotle is a better place to eat because our food is handmade and organic. Our vision statement is “to change the way people think about fast food and to create an environment empowered by top performers who achieve high standards” (Moran)

The actions taken by Chipotle after the E.coli outbreak can be seen as both exacerbating the problem and finding ways to resolve the problem. However, as the crisis began, leadership coming from CEO Steve Ells and Co-CEO Monty Moran painted a picture of denial. One of the first decisions made in reaction the crisis was to purchase full-paid advertisements. This marketing tactic was done to mask the severity of the e-coli outbreak, sooth investors, and retain loyal customers. In addition to television advertisements, Chipotle decided to advertise using direct mail (Wahba, 2016). This practice does not correlate with traditional chipotle advertising; their last paid advertisement was in 2012. Chipotle has always operated in a fashion that let

Chipotle, on the other hand, “seems to have created a sustainable branding strategy that leverages its good food, humorous ads, distinctive interior design, and in-store world music” (Wikinvest.com, 2010). The company is positioned to capitalize on their organic and farm raised food, and high quality ingredients. “According to the organic Trade Association (OTA), organic food sales are growing at a 20% clip annually in the US, although such food only accounts for 3% of all food and beverage sales” (Wikinvest.com, 2010). Chipotle is also positioned to tap multiple markets: baby boomers who can afford to dine out, Hispanics, two income families who do not have time to cook, and the socially conscious consumer.

With the right ingredients, speed, quality and leadership, Chipotle has reinvented the fast-food business. Serving food with integrity has produced big profits.

re strong competitors and Yum! Foods leads the industry it is my recommendation that any investments be made in Chipotle.

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.

Chipotle Mexican Grill, Inc. is a “fast-food service restaurant” under limited service category. It was formed in 1993 and went public in 2006. It has the largest market share in the Mexican-type food segment with a net income of more than

As a fast food restaurant, economic changes may have a large effect on the profitability of Chipotle. To this extent, being in the explosive food industry has its ups and downs. For example, the chicken or prices of natural ingredients may increase due to inflation, scarcity, or a number of other factors. This will translate into an increase in price of food for Chipotle consumers. This may ultimately lead to a decrease in sales which may cause clients to take their business elsewhere thus affecting brand loyalty.

8. How does Chipotle Mexican Grill’s competitive strength compare against that of Taco Bell, Qdoba MexicanGrill, and Moe’s Southwest Grill?

The Fast food industry is extremely competitive. Although Chipotle is a step up from most fast food restaurants, it still must

Chipotle first opened in Denver in 1993 and the chain has grown to more than 900 stores primarily in the U.S, its major presence, and a total 1,750 locations worldwide. However the business has expanded so much it, the Mexican Grill restaurant has even been able to open a location in Toronto, Canada. Although Chipotle has opened their restaurant with the simple concept of being able to build your own taco, burrito or bowl to your own liking, that concept of simplicity allowed them to reach heights, that haven’t before been seen in the fast food business.

Due to economic downturn the strength of the buyers’ power has increased as the industry looks to gain consumers with pricing strategies much like those of McDonald’s “Value Menu” and combination meals even though the cost of commodities have gone up (James, 2010). Customers of QSRs are looking for quality food without high costs. While Chipotle does not have a value menu or offer any type of combination meal much of their success is due to the fact that the customers are willing to pay a higher cost for higher-quality (Chipotle, 2010).

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

Chipotle carved a specific niche out of a burgeoning market that was saturated with the newest menu item at rock bottom prices. Since then a number of competitors with very similar menu items and philosophies have entered into the market. Qdoba and FreeBirds are just two competitors that offer very similar menu items. However, for this comparison we will be looking at a traditional fast food chain that has embraced the fresh quality movement and redefined its self as a healthier and better option than its competitors.