...Review of Chipotle Mexican Grill, Inc. Abstract For the past two decades, Chipotle Mexican Grill, Incorporated has been quick to rise in popularity as an international fast food restaurant that strives to differentiate themselves from the “typical” experience that one would expect at a short-order restaurant (Chipotle, 2015, para. 1). While Chipotle has been extremely successful through their use of locally grown, classic techniques, and high-quality ingredients (Chipotle, 2015, para. 2), the company has recently been faced with numerous issues with their company’s health practices and a slowing sales growth (Peterson, 2015, para. 3). Review of Chipotle Mexican Grill, Inc. Introduction Chipotle Mexican Grill, Inc. (Chipotle) is a fast-food restaurant that was founded by Steve Ells in 1993 in Denver, Colorado (Fundable, 2016, para. 1-6). According to Fundable, Ells has a degree from both the University of Colorado and the Culinary Institute of America (2016, para. 5). From there, Ells began work as a sous chef before he was able to secure a loan of $85,000 from his father to go towards the purchase of his first fast-food restaurant, Chipotle (Fundable, 2016, para. 1-4). Ells and his company experienced almost instance success. Chipotle grew so popular, that it wasn’t long before investors were looking to capitalize on Chipotle’s success, as well. After just three years of being open, Chipotle had grown to three stores and the well-known fast-food chain, McDonald’s...
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...Harvey Marketing 522 February 11, 2016 Why are we developing a new IMC campaign? Problem: Chipotle a well know Mexican Grill, has provided millions of customers over the past 22 years with high-quality, fresh food in a fast paced environment; giving them an experience to remember. However, in the past 2 years we have experienced to E.coli outbreaks that have affected numerous customers. In 2015 55 people were infected, in 11 states and 21 of them were hospitalized. Then in 2016, another E.coli outbreak infected 5 people in 3 states in which 1 person were hospitalized. (CNBC.COM) Given the recent issue, Chipotle has lost trust in its customers, as well a decline in sales since the outbreaks. In order to restore trust and regain top contender status, there must be a way to attract our customers. What is our objective? The main objective for Chipotle is to regain our customers trust. There are loyal customers who remained loyal, during the outbreak; but there are just a many customers who retreated and favored place such as, Chick-fil-a; Burger King; Fire House Subs; McDonalds. We want those customers back! While we understand the road will not be easy, we are willing to do what it takes to once again serve food with integrity. Who is the target customer? Originally the target market was those young, health conscious customers who were looking for healthier and fresh fast food options. Now that there has been 2 E.coli out breaks the original target market has been tarnished...
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...In The News Chipotle Mexican Grill was first founded on July 13th 1993 in Denver, Colorado by Steve Ells. With his experiences in culinary school, his vision was to establish a restaurant that was simple and creative. Chipotle Mexican Grill became one of the fastest growing industries in the world. There are now a total of 1700 locations worldwide located in the United States, France, United Kingdom, Germany and Canada. Recently, there has been an E. coli outbreak with Chipotle restaurants which led to the closing of 43 stores. All cases of E. coli have been confirmed in the Washington and Oregon area. Many victims have filed lawsuits against Chipotle because they have become ill due to the bacteria. Anyone that have eaten at Chipotle between Oct. 14-23 have experienced vomiting, stomach cramps and bloody diarrhea. Health officials are urging anyone experiencing those symptoms to report to the hospital immediately because E. coli has a possibly of leading to death. The public is questioning Chipotle about how the E. coli outbreak even began. Many assumed that the products used in the chain restaurant have been unsanitary. The most common way to spread E. coli is through feces. Chipotle released a statement that they believe the source of the E. coli is from their vegetables and that they are doing their best to investigate the situation. This isn’t the first time that Chipotle faced food safety issues within their chain. In August, a Chipotle restaurant in California was temporary...
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...Case 10- Chipotle Mexican Grill in 2012: Can it Hit a Second Home Run? Small Quiz-Strategic Management Felix Hedyanto Rulie-1342980281 Summary: Chipotle Mexican Grill was established in Denver in 1993,by Steve Ells. Guided by conviction that food served fast did not to be low quality and that delicious food did not have to be expensive. Menu & Food Preparation-The menu at Chipotle Mexican Grill was unusually limited: burritos, burrito bowl, tacos, and salads, plus soft drinks, fruit drinks, and milk. Serving Orders Quickly-As Customer moved along the serving line, Customer selected exactly what they wanted and how they wanted it by speaking directly to the employees that prepared the food and were assembling the order behind the counter. The Commitment to” Food With Integrity”-Use organically grown local produce, organic beans, organic dairy products, and meats from the animal that were raised in accordance with animal welfare standards and were never given feeds containing antibiotics and growth hormones to speed weight gain. Supply Chain Management Practices-the company developed long term relationship with a number of reputable food industry suppliers that could provide high quality, fresh ingredients, and other products that meet Chipotle expectations. Chipotle utilized the services of 22 independently owned and operated regional distribution centers to purchase and deliver ingredients and other supplies to Chipotle restaurants. Chipotle personnel diligently monitored...
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... MGT 499 Jessica Hansen, Leslie Hansen, Nuradin Ahmed, Shane Ottmar Case Study MGT 499 07/27/2014 MGT 499 Table of Contents Situational Analysis Page 2 History Fast Casual Food Industry Strategy Page 3 Chipotle Value Chain Competitive Landscape Page 4 SWOT Analysis Page 6 Conclusions of Chipotle’s situation Page 8 General Environment Analysis (General & Direct Environments) Identification of Strategic Issues Page 10 Evaluation and Examining strategic alternatives Page 11 What are the risks ...
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...include universal values such as equality of all men and women, human or natural rights, obeying the laws, concern for health and safety, and the environment. Business ethics involve the application of these issues in the workplace. Social responsibility, again according to BUSN Introduction to Business, is the obligation of a business to contribute to society. Being socially responsible means that people and businesses must behave ethically and with sensitivity toward social, cultural, economic and environmental issues. Social responsibility is the obligation of a business towards the welfare and interests of the society in which it operates. This paper will describe key areas of the Chipotle’s code of conduct that are of significant importance to the business, explain key steps that should be taken to ensure that employees follow the code of conduct, and suggest ways in which the restaurant can engage in socially responsive activities in the community within which it operates. Let’s start off with some background information about the restaurant. Chipotle first opened its door in 1993 in Denver, Colorado near the campus of the University of Denver. The founder, Steve Ells, a former culinary arts student and chef, obtained the old Dolly Madison ice cream shop to locate the business. This restaurant serves fast food in a not so traditional fast food model. Ells’ inspiration came from his time spent in San Francisco, eating at little taco shops....
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...Objectives MARKETING STRATEGY..............................................21 MARKETING PROGRAMS............................................23 FINANCIAL PLANS.......................................................26 IMPLEMENTATION AND CONTROL..............................26 1. REFERENCE LIST..........................................................27 2. APPENDIX [A.1] Sales forecast [A.2] Budget marketing plan [A.3]Implementation plan 1. EXECUTIVE SUMMARY This report has commissioned to development a Marketing Plan for Chipotle Mexican Grill Inc.(CMG) and recommend strategies for the introduction of its products in China to achieve the objectives. The research draws attention to the fact that Asia fast food and Fast Casual Food grew by 13% and 8% respectively in the world. CMG belongs to Fast Casual Food sector....
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...Company Overview: Chipotle Mexican Grill, Inc. is a chain of restaurants in the United States, United Kingdom, Canada, France and Germany, specializing in burritos and tacos. Its name derives from chipotle, the Mexican Spanish name for a smoked and dried jalapeño chili pepper. Chipotle is one of the first chains of fast casual dining establishments. With more than 1400 locations in 43 U.S. states, Washington, D.C., three Canadian provinces, the United Kingdom, and France, Chipotle had a net income in 2012 of US$278 million and a staff of 37,310 employees. Mission Statement : Food with Integrity - This mission statement highlights its efforts in using organic ingredients, and serves more naturally raised meat than any other restaurant chain. Company's vision : Change the way people think about and eat fast food. History: Founder Steve Ells attended the Culinary Institute of America at New York and then went into the restaurant business working at Stars restaurant in San Francisco where he observed the popularity of tacos and burritos. Chioptle has approximately 750,000 customers per day. 1993 - Ells opened his first Chipotle in Denver, Colorado, in a former Dolly Madison Ice Cream Store near the University campus using an $85,000 loan from his father. They both figured that to stay in profit, they would need to sell 107 burritos per day. After a month, the store was selling over 1,000 burritos a day. The cash inflow was good. 1995 - Ells opened a...
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...Food safety has become a recent phenomenon in the United States. Over the years, there have been outbreaks of E. Coli in restaurants for example, Chipotle and Jack in the Box and salmonella in peanut butter and cucumbers. The only way that citizens will feel serene with the food they eat is if they are assured that the food is safe to ingest. The United States Department of Agriculture is an organization that educates the public about the importance of food safety, but do not actually do anything to prevent infection and contamination. Although the Food Safety and Inspection Service confirms that the nation’s supply of meat, poultry and eggs are safe and properly labeled (Food Safety | USDA), it does not mean that the food could not become contaminated later. Even though the FDA says they are trying to better the food safety system, they are not doing an efficient job because too many restaurants are getting contaminated and closing down (What Government Does). The issue of food safety is of great importance to the American society because it is a health violation that is not being accounted for. Passing more food safety legislations, including effective tests run by the FDA will be the best solution to resolve food safety issues and will decrease infection in American citizens. E. coli and...
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...The entire investor relations department and I have been dedicated to give Chipotle Mexican Grill a great image across the globe. Because of our substantial collaboration as a team we want to provide you, with important updates related to the company outcomes. In the past years the company has been a successful business although recently, it has been going through some tough times. In these tough times, we need to observe carefully the share and stocks since they had declined because of the outbreaks that occurred throughout the nine states. Although the company's finances are still strong and the decline could be a good buying opportunity perhaps wish to wait through further news. Because you are owners of the Chipotle company, you play...
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...Course Project: Marketing Plan for Chipotle Mexican Grill to offer a Delivery Service DeVry University, Keller Graduate School Of Management MKTG522 Marketing Management For 1.0 Executive Summary Chipotle Mexican Grill is known for the gourmet meals and has many locations throughout the United States and their customer base continues to grow. Chipotle has been in existence for as long as they have because they have listened to their customers and their needs as can be evidenced by the additions to their menu over the years. One such need of the customers of Chipotle Mexican Grill is a delivery service. Food delivery came about because of a need. In the Second World War, many homes were destroyed so naturally there were no kitchens in which to prepare food. Because of this, meals had to be delivered to the affected families; this dates back to as far as 1947. It has since evolved from that need to a luxury which restaurants offer in order to better reach those customers who may require such a service. Chipotle Mexican Grill targets both men and women living an active and healthy lifestyle that are all educated with considerable amounts of disposable income. For these reasons, a delivery service will be very fitting for those people on the run. The delivery service will also stand to increase the company’s earning potential. 2.0 Situation Analysis Chipotle Mexican Grill is a Mexican fast food restaurant that prides themselves...
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...Chipotle 1. vision/mission and objectives? The mission and vision of chipotle is to change the fast food industry by providing High quality products with the best raw materials, healthy and friendly environment ingredients, and they also serve alcohol. 2. Corporate//Business strategy: Chipotle brings on outside investors and McDonald's enters the picture, purely as an investment partner. From then on, Chipotle starts to extend its market to outside of Colorado. In the period from 2001 to 2006, Chipotle expands from under 100 locations to 466, expanding into more than 30 states. And in 2008, McDonald's says goodbye to Chipotle, spinning off the company in an IPO on the NYSE (CMG). From then on, Chipotle has shown its significant growth and has its first home run in 2012. The company follows the strategy predicated on five elements: serving a focus menu, using high-quality ingredient and classic methods, creating operationally efficient restaurant with aesthetically pleasing and distinctive interior settings, taking good care of each customer and protect the environment. 3. Industry Analysis/ five forces models: —rivals: Chipotle has made a home run with the model of Mexican Grills. Compare to other rivals, it has higher competitive strengths and higher financial performance. But for the new model which is the ShopHouse, there are still some weaknesses as well as threats that are not fully concerned yet. After all, with some suitable changes in the strategy, the new...
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...ethics involve the application of these issues in the workplace. Social responsibility is the obligation of a business to contribute to society. The most socially responsible firms feature proactive policies that focus on meeting the needs of all their stakeholders not just investors but also employees, customers, the broader community, and the environment” (Kelly, 6th edition 2014). “The most basic ethical and social responsibility concerns have been codified as laws and regulations that encourage businesses to conform to society’s standards, values, and attitudes. Managers are expected to obey these laws and regulations. A lot of times the legal issues that come about are those that society thought to be unethical and irresponsible but these aren’t always illegal these ethical concerns change over time” (McGraw-Hill, 2000). Describe key areas of the selected company’s code of conduct that are of significant importance to the business, and explain why. Chipotle is a company that is based on integrity. Integrity is about being real and being honest, which in turn means do the right thing even when no one is looking. This company adheres to high ethical standards and good judgment. This is one key importance because you want to be sure that you can trust a company and its loyalty to customers. Loyalty will keep customers coming back time after time because they know that you are there for them with satisfaction. You don’t want to be sold bad food or cheated out of your money; you...
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...across six continents, Yum! Brands Inc. is the world’s largest restaurant operator in terms of the number of locations it owns. Yum! Brands, based in Louisville, Kentucky is ranked #201 on the FORTUNE 500 list with revenues of more than $13 billion. It was named among 100 Best Corporate Citizens by Corporate Responsibility Magazine in 2013. The restaurant brands - KFC, Pizza Hut and Taco Bell are leaders of the chicken, pizza and Mexican-style food categories globally (Yum! Brands Inc., 2014). With this kind of credit and stature this company has, who would think Yum has any challenges within their company? Yum! has their fair share of common human resource challenges. They also have some uncommon challenges. These challenges include but probably are not limited to; low wages for employees, food safety issues, high turn-over, wage/hour violations and child labor rules. Challenges such as these have cost Yum! Brands thousands on top of thousands in fines, as well as bad media. Low wages is one of the biggest challenges in the fast food industry as a whole. Yum! Brands seems to have it worse than most. Reports show that a substantial amount of Yum’s domestic employees are paid very little and causes them to have to seek government or community assistance, just to feed their families and provide necessities. About 86% of these employees are employed only part time. According to the National Employment Law Project, these services that are being provided are supported by taxpayers...
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...sets of beliefs about right and wrong, good and bad; business ethics involve the application of these issues in the workplace. Social responsibility is the obligation of a business to contribute to society. The most socially responsible firms feature proactive policies that focus on meeting the needs of all their stakeholders not just investors but also employees, customers, the broader community, and the environment” (Kelly, 6th edition 2014). “The most basic ethical and social responsibility concerns have been codified as laws and regulations that encourage businesses to conform to society’s standards, values, and attitudes. Managers are expected to obey these laws and regulations. A lot of times the legal issues that come about are those that society thought to be unethical and irresponsible but these aren’t always illegal these ethical concerns change over time” (McGraw-Hill, 2000). Chipotle is a company that is based on integrity. Integrity is about being real and being honest, which in turn means do the right thing even when no one is looking. This company adheres to high ethical standards and good judgment. This is one key importance because you want to be sure that you can trust a company and its loyalty to customers. Loyalty will keep customers coming back time after time because they know that you are there for them with satisfaction. You don’t want to be sold bad food or cheated out of your money; you will always get what you pay for. You may not use company property...
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