Swot Analysis Of Chipotle

Chipotle employees may have lost some pride for their company after the outbreak, but enough time has passed for them to have come full circle. Their current state of distress is simply a result of poor training and ineffective management. As stated at the beginning of the article:

Chipotle makes sure that the plants animals are being treated right and are not fed GMOs. Years ago, the carnitas (pork) was removed from restaurants because the animals were not treated right. Our fruits and vegetables are washed and blanched, to remove germs and other harmful bacteria. Our foods and vegetables are hand cut to a certain style. We focus more over quality than with quantity but quantity is still our main concern. We did have a summer rewards program (it was just a test drive. It will be back soon) and we have a few coupons such as the Buy One, Get One Free coupon and the One Free Chorizo coupon. At Chipotle, were always thinking of the customer’s health? From our utensils to our foods, everything has a certain temperature. To make sure that everything is to temperature, we fill out “the Black Book” which is a book that records the temperatures of the foods on the front line, the grill, and the walk-in fridge. These get done periodically throughout the day. Other than temperatures, we have portion sizes to help with your health. Some people may not agree with the portion sizes but portion sizes are here for two reasons; to save food and to not fill you up on so much

Chipotle, ever the noble ambassadors of good burrito will, have been humble and cooperative throughout the investigation. Health officials are giving the company kind words and gold stars (despite, you know, the salmonella). One spokesperson for the department of health said that “Chipotle has been extremely proactive in collaborating with investigators to quickly control the outbreak and identify its source.” Another asserted the Health Department’s confidence that it is now safe to eat at Chipotle, sharing that he had a burrito bowl there last Wednesday.

Chipotle’s business strategy is affected by the strength of rivalry as their demand is slowly declining in the face the e-Coli breakout in their restaurant chain and their format is imitated by competitors (Elizabethtown College, 2014). To remain sustainable in the fast casual market, analysis of current trends including growing customer concerns about what they eat and how it is prepared must remain their fundamental focus in the years ahead. Chipotle must continue to provide a unquie dinning experience as well using classic cooking techniques and high quality ingredients, aligning their commitment to “Food with Integity”. Their biggest hurdle to overcome will align with customer trust in the face of the food safety incidents that negitively

Throughout this research I found that Chipotle has done more damage to the company than just letting down its customers. They have to now face the fact that those outside suppliers are now shying away from business with them because it will make them look bad to future partnerships. Chipotle is now in a state of bringing their company back in a good light by offering different promotions and coupons for loyal customers and customers they need to gain back. They have to go back into the company and figure out how to control the quality of all of their supplies. In my research I made note of a lot of the activity that occurred when the outbreak of E. coli in their meat began and how it spread. I also touch bases on how the company plans to

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.

As part of the company’s attempt to save Chipotle’s public image, Steve has also stated that the company will invest money into food safety and marketing. On February 8, 2016, Chipotle closed their restaurants until 3 pm for a food safety meeting, where approximately 50,000 employees tuned in via satellite to watch a food safety video. The company’s Twitter covered the highlights of the meeting, still using hashtag “#ChipotleAllTeam” to enhance positive media coverage. The company is using these incidents as a learning opportunity and a chance to regain the public’s trust. Users can learn the specific details of the food safety incidents on the company’s website, and could also read a letter from Steve:

Chipotle Mexican Grill Incorporated has always had a great reputation for being an inexpensive, high quality, fast-food chain. That reputation suddenly diminished when the company had to close 43 restaurants in Oregon and Washington State towards the end of 2015. An E.coli outbreak had emerged at six restaurants in that region, and soon afterwards the same was reported in seven other states. Health officials cited a particular restaurant at Boston College for improper handling of poultry and the presence of a sick employee after 80 students had become ill after eating there. The cause was a common virus, norovirus. After instances of contaminated food, Chipotle was being thoroughly questioned about their pledge for serving “food with integrity.”

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

Despite all the troubles and safety concerns that the company went through, chipotle is striving to improve its image and standard. According to its founder, they have been implementing an enhancing their food safety plan which will establish the company as an industry number one in food safety. Also, the company have put in place state of the art food safety standards with their suppliers. Doing so will ensure that the food delivered to our restaurants by our suppliers is safer than ever before. In store, they are also going to be improvement in the way the food is process. This will include washing and cutting all produce items, shredding cheese in central kitchens, blanching of some items, and new protocols for marinating chicken and steak

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.

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.

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, like many other businesses, faces many ethical problems. Currently, the future of Chipotle is unknown due to an E. Coli outbreak, however, I feel like that is something that has the potential to happen whenever a business sells food. Chipotle has faced what I feel is an, even more, important ethical problem. Chipotle’s marketing is really where they have shown how unethical they really are. Through Chipotle’s marketing, they have continuously falsely advertised their company. Their advertising tends to raise more questions than provide answers to its viewers and they are misleading in the way that things really are.

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