Chipotle Mexican Grill is an American restaurant chain that currently has more than 1700 locations, with most of its locations in the U.S. and several in Canada and Europe. Chipotle has been gradually expanding its international presence since it opened its first location outside the U.S., in Toronto in 2008 (International Strategy, 2015). The restaurant now has 17 locations outside of the U.S. including locations in London, Paris, and Frankfurt. However, like all other international corporations, Chipotle strives to grow its business even further and extend global awareness of its brand. The next step in Chipotle’s global strategic plan would be to venture into new waters and enter Asia. Hence, Chipotle is now analyzing the decision of expanding operations into China.
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
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Thus, Chipotle must find a way to differentiate itself from other western restaurant chains, while integrating itself into the Chinese culture. It can use its capital and reputation for using local and sustainable ingredients to build a strong brand—a core competency that will give it a competitive advantage in the Chinese market. In a large, international city like Shanghai, local street food is cheap, but people will still want to dine at higher-end western restaurants because of that entails a higher status (Maxfield,
Competitors in the states just to name a few would be Moes southwest grill , Taco bell , and Baja Fresh mexican grill these food chains compete in many ways from the menu , prices and location. Foreign competitors in australia would be Izole Mexican ,Barrio chino and cantina mobil though these are all different forms of mexican style restaurants they all share the high demand for mexican cuisines . The competitive advantage that makes chipotle such a great investment is there business plan which requires them to incorporate the speed of a fast food industry by having high quality products , even though these mexican grills target the same customers chipotle stays above the others with their strategic strategies that differentiate the food ; Oppose to the competitors all of their food contains natural ingredients which is one of the major reasons why chipotle has such a high growth rate which allows them to
In order to distinguish itself from competitors, especially Qdoba doesn’t want to be “me-too Chipotle”, Qdoba redesigned everything includes in-store layout, new branding, and personalized service. For example, Qdoba has colorful and artistic design on the wall, seating and washroom, which creates strong visual effect of Mexican culture and makes customer feel casual and happy. As we know, Chipotle is the King of burrito, however Qdoba choose to promote variety tacos to develop it’s competitive advantage. Qdoba launched a set of six Knockout tacos on October 27th, 2015, which enriched Qdoba’s menu items and provided more options for customers. Also, Qdoba’s employees with new designed uniforms are encouraged to speak their recommendations and provide more human touch services not machine-like assembly line. “The worst thing you could hear is as server who says everything’s good.” said John Cooke, VP, menu strategy and innovation at Qdoba. Furthermore, Qdoba introduced a kid’s menu and has 24 open hours for some locations to satisfy more customer needs.
As demonstrated in Exhibit 1 on page 143, the company’s total revenue increased from $1.085.782 million dollars to $3.214.591 million dollars in less than seven years. Beginning at the end of 2007 through the end of 2013, Chipotle’s Mexican Grill total revenues increased at a CAGR of 19.83%. The new provided catering program, the six elements of their strategy adapted to other cuisines (ShopHouse Southeast Asian Kitchen) and the growing number of new restaurants are decisive aspects in increasing revenue yearly.
All organizations have their own unique traits that differs them from others. There are a lot of reasons that helped chipotle grow and expand in the way they did. One of the main reasons is that their main focus is on their employees. They believe that creating a culture that focus on helping your people to grow and develop is the base for success. By having employees who love what they do; they will help in creating a brand that customers will love and they will be committed to accomplish the company goals.
re strong competitors and Yum! Foods leads the industry it is my recommendation that any investments be made in Chipotle.
A wide variety of food and a part of the community versus which is healthier which are things that need to be considered when choosing what to eat. Chick-fil-a is a unique restaurant because chicken is the only meat on a meat-based menu. Chipotle, while not unique, is very good for the few items they make. Both restaurants are so good it is hard to choose which to go
The company had run a national TV commercial which named “Back to the Start” during the Grammy Awards. Chipotle also had published their food, restaurant concept and business through favorable articles and television programs. Moreover, Chipotle used video and music programs as well as event strategy to attract the consumers’ attention to their restaurants. The company also initiated promotional activities via newly opened restaurants to attract more consumers. Chipotle introduced a reward program, the “Farm Team” to encourage more customers to join a program that educated them something related to Chipotle Mexican Grill business concept. In addition, the word-of-mouth publicity from customers enable Chipotle to reduce the cost of advertising but at the same time increasing the brand reputation of the restaurants in the
Chipotle plans to keep its menu simple, but the combinations of fresh ingredients create countless meal varieties for customers. The majority of the food products are fresh and prepared from scratch using kitchen stoves, grills, pots, pans, knives, and other utensils.
• Expanding into markets with a diversified tastes and unfamiliar local market. Chipotle expansion to London and Paris may encounter difficulties as culture, taste preference, spending habits and lack of qualified suppliers for Chipotle’s high quality food standards could adversely impact the newly open
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.
The Fast food industry is extremely competitive. Although Chipotle is a step up from most fast food restaurants, it still must
Changes in customer preferences, general economic conditions, discretionary spending priorities, demographic trends, traffic patterns and the type, number and location of competing restaurants have a moderate effect on the restaurant industry (Chipotle, 2010). One example of customer preferences being a driver in the industry is the “Whole Food-ism Movement” which has put a large focus on organic, antibiotic-free, and non-processed foods (Mansolillo, 2007). Consumers now look for healthier options when eating and an overall healthier lifestyle. Chipotle has been able to benefit from this movement by carrying on their “Food with Integrity” mission (Chipotle, 2010).
First off, Qdoba provides many more options on its menu than Chipotle. For example, kids have four options on
Have you ever tried the best tasting fast food Mexican restaurant on the market? It is called Chipotle. Chipotles restaurant has great service and many excellent choices.
Chipotle’s organizational structure is centered on the functional structure. The top levels of management include the co-CEOs, CFO, Head-Media Relations, and Chief Creative and Development Officer CCDO (Chipotle). Chipotle is a smaller corporation relative to its competitors, which allows it to focus on a vertical hierarchy based on functions. The fact that there are few departments demonstrates that Chipotle is still a growing corporation. Chipotle is a highly centralized corporation as all of its stores are corporate owned and they must follow the rules set by the corporate headquarters this involves the same menu throughout the country and the same prices. The restaurant business follows high levels of formalization a set of guidelines must be followed in order to comply with food and health regulations. There is low division of labor at the restaurant level as those cooking can shift to serving and cleaning when needed, allowing the allocation of labor to match whatever is needed in the situation. A unique aspect of Chipotle’s upper management is the fact that there are two CEOs (Feloni). The two CEO help ease job functions and enables them to be more accessible. Another managerial aspect of Chipotle is the through the position of restaurateur. There are 183 of these positions and they work to manage several Chipotles, bringing management close to each store (Investor’s Business Daily). From their organizational structure we can see they place high importance on