Micro Econ Paper
Chipotle’s is a fast-casual dining concept that has proven people care about their food. Chipotle has been at the forefront of the healthy fast casual concept for years now. They have continually pushed the envelope when it comes to the locally sourced, locally grown movement. Since the launch of Chipotle other companies have tried jumping on board with this movement, some have done well and others not.
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.
“Chipotle had 2,010 restaurants in operation as of December 31,2015. While Wendy’s has 6,479, restaurants worldwide (As of 1/3/2016), Ranked at #162 Chipotle Mexican Grill Market Cap as of May 2015 $20.5 Billion. Employing 53,900 people, with sales at 4.11 Billion dollars (Forbes, n.d). ‘However, due to a health scare in late of 2015 Chipotle took a major hit. dropping its market cap to $12,473,967,164 as of 4/29/2016 (Chipotle, n.d). “In contrast, Wendy’s has a market cap (As of 05/02/2016) $ 3,030,944,629.20 (Wendy’s, n.d). Also, with almost
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.
Another point that reinforces this statement is related to their employees and the way they benefit them in many different ways because from the beginning, they become part of Chipotle by a trainee program and after that if they show that their store is running in a very positive way, they will promote making possible going up the ladder. They
Chipotle Mexican Grill, Incorporated is a restaurant that offers Mexican food including burritos, tacos, burrito bowls (a burrito without the tortilla), salads, and more. The company has been in operations since 1993, starting out as one unit and growing to 1,300 units in over 46 states, the District of Columbia, Canada, and the United Kingdom in 2011. The restaurant served fast-casual food with a customizable menu. The restaurant prides itself on serving food made from scratch with wholesome, organic ingredients (Chipotle, 2016). Chipotle is a restaurant in the fast-casual dining industry, focusing on food sourced from sustainable farming practices including meat product that is responsibly raised in humane ways
Chipotle’s competitive advantage is they are the only restaurant that is environmentally conscious. They have tried to reduce their carbon footprint on the earth atmosphere by focusing on a program called Leadership in Energy and Environmental Design (LEED) which uses solar energy for electricity to reduce the energy consumption during peak hours. They only deal with the freshest, most natural, and organic ingredients. They work with local farmers to give their customers the best taste of fast casual dining. Also, Chipotle have started a program that allows them to increase local sourcing to 35% by using produce that is grown 350 miles from their restaurants.
One thing that is obvious is Chick-fil-a wants to help young people have a future. They do so through education, entrepreneurship, and leadership. The restaurant supports organizations who help children learn by encouraging children and giving them the tools to become successful in their schooling. One of the things the company is trying to do is help young people become entrepreneurs which will help newer generation give back to their communities. As well as entrepreneurs giving back so will those who learn how to become effective leaders. The websites were filled with ways how they help the community, but I did not find the same on the Chipotle website. Chipotle talks about fundraisers, but does not say anything about trying to help the community, nor does it talk about scholarships. Chick-fil-a is an active part of the community.
Chipotle’s competitive strategy is to use a focus differentiation strategy by aiming to target a narrow market. Chipotle wants to set itself apart from other fast food establishments by targeting a narrower market of consumers looking for variation among product choices. Chipotle uses a focus differentiation strategy through its’ “Food with Integrity” philosophy. Chipotle is focused on serving organic ingredients to deliver the best taste, nutrition, and value. The direct competitors of Chipotle are Panda Restaurant Group, Qdoba Restaurant Corporation, and Taco Bell Corporation.
Strength 1: Largest Restaurant Chain in Market Segment, with highest share Chipotle has the largest share of the fast casual marketing segment in the Unites States. Chipotle has over 1,400 locations and plans to open an additional 140 locations this year. By holding the largest share of the market, Chipotle is able to trial, expand, and experiment with new ideas in certain geographic locations. Chipotle is able to trial new menu items and not have it affect the bottom line, and in addition, they are able to gather an incredible amount of information regarding customer data. This data will allow Chipotle to understand the different demographics of its customers in the trial locations. With its 1,400 locations in many locations provides Chipotle with the strength to trial new ideas.
There are also healthcare benefits and stock purchase programs for both salary and hourly employees. To top it all off, Chipotle encourages their employees to receive higher education, so they offer tuition reimbursement. All these perks lead to happier employees, which translates to better customer service, which means more profit. Some other strengths include, a strong international presence in the US, UK, Canada, and France, online ordering and occasionally delivery to customers, and all restaurants are owned by the company and not
Chipotle Mexican Grill is a fast casual Mexican Restaurant that operates from the United States. Although the restaurant is specifically segmented to the fast casual Mexican restaurant market, it does not simply operate in this realm. Chipotle is also successful operating in the restaurant market as well. According to the Trefis Team (2014) Chipotle Mexican Grill has managed to take market share from restaurants in the fast food industry.
The age old debate: is Chipotle or Qdoba the better fast food Mexican restaurant? Of course, one could choose from many pros and cons for either side, but my goal was to dig down into the debate. Which restaurant has a better atmosphere? Which one has better ingredients? Are there more options at one than another? Which restaurant gives it’s customer more bang for their buck? Although I may be biased because I work at Qdoba, I’ve thoroughly researched each restaurant and come to a conclusion. Each restaurant brings many different options to the table, but in the end Qdoba is far superior to Chipotle in many ways.
CMO Mark Crumpacker stated, fast-food marketing typically is a game of trying to obscure the truth; The more people know about fast-food, the less interest they’d want to be a customer. Chipotle’s mission statement “Food with Integrity” reflects its focus on fresh ingredients; great food with a socially responsible message made them one of the first organic oriented fast-food restaurant
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.
Based on my experience as a customer at Chipotle, their organizational culture is centered on high quality products and enjoyable customer service. Chipotle’s artifacts can be seen throughout their store and in their products. They deliver high-grade good in a clean and friendly atmosphere. The posters within the store
Chipotle is a fast casual dining establishment that serves Mexican cuisine, specializing in burritos and tacos. Like other fast casual restaurants, it does not offer full table service, but promises a higher quality of food with fewer frozen or processed ingredients than fast food restaurants. In fact, Chipotle is widely known for its mission to only use organic ingredients and
Chipotle like put itself to in a category of dining now called "fast-casual”(Chipotle). Fast Casual Restaurant Industry is a growing industry. More and more quick service and full service restaurants want to join in, because consumer can get well food with affordable price in a casual atmosphere(Wall). Fast casual restaurant offer high quality food with limited service restaurant. It mixed of fast food, casual dining restaurant. The menu is limited, affordable, and fast food, casual dining restaurants in the place. Many people like to fast casual restaurant for high quality food and affordable price points. Food in these restaurants are generally prepared with fresh, high-quality raw materials (Jones).