Mission, Vision, Values, and Principles of Chipotle Mexican Grill

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.

Chipotle Mexican Grill was a concept turned reality by a gentleman by the name of Steve Ells. Chipotle Mexican Grill provides excellent Mexican cuisine driven by a concept of “Food with Integrity”. The first chipotle Mexican grill was opened in 1993 in Denver Colorado. By the end of 1995 there were three. In 1996 alone, Steve Ells opened five more Denver-area restaurants growing by a total of eight stores in three years. By 1998 Chipotle Mexican Grill was showing much promise. In order to meet their growth needs Chipotle took on outside investors.

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

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.

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

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

The purpose of this new product expansion is to increase sales primarily. Increasing sales is very important for Chipotle and these new products can help raise revenues significantly. The project deliverables include the introduction of the project, and the implementation of the project both in the United States and then other

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.

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).

Chipotle is the leader in the fast casual market, with over 1,900 locations, $3.21 billion in annual revenue, and the ability to serve up to 300 customers an hour. It has innovated the restaurant market by providing reasonably priced scratch-made meals, containing local ingredients, all within the confines of a pleasing aesthetic environment (Chipotle Mexican Grill, Inc., 2014; Kaplan, 2011). To reach its success, the firm utilized architectural innovation by stealing components of various types of restaurants already in existence. The company appropriated its rapid meal preparation methods from fast food chains such Subway and Quiznos, adopted its provision of quality food from more upscale casual Mexican restaurants, and implemented a locally based supply chain similar to that seen at many local farm-to-table establishments. This convergence of different properties came together right as the millennial generation was coming of age and demand higher quality, natural, and locally sourced ingredients in meals that could receive quickly. The company has also attempted to utilize an incremental innovation approach by removing all CMO ingredients and testing new foods such as breakfast items, soup, and chorizo sausage (The Associated Press, 2015; Peterson,

• 100% of pork from naturally raised pigs from those producers who can meet Chipotle strict guidelines.

This business believes in “Food with Integrity”, meaning “whenever possible Chipotle uses meat from animals raised without the use of antibiotics or added hormones. They use organic and local produce when possible. Also, Chipotle supports and sustains family farmers who respect the land and the animals in their care.”

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