Fascinated by the simple cost-effective business models he observed at small burrito shops in San Francisco, Steve Ells founded the first Chipotle Mexican Grill in 1993 near the University of Denver. By putting his own spin on the traditional casual dinning approach, Chipotle is now an enormously successful publicly traded company with over 1,000 locations in 38 states.

Although Steve was first drawn to the business model by its limited cost structure, he aspired to run his business in a sustainable manner. The company uses management accounting to ensure their high standard operating decisions will also provide the company with enough profit to remain competitive and continue to grow.

Customer Value Proposition

Differentiating themselves from the completion, Chipotle primarily focuses its branding and marketing campaigns around two value concepts, “Food with Integrity” and “Fast-Casual Dining”. These propositions are predominantly geared toward winning over its major customer segment, millennials.

Chipotle’s core value proposition marketed by the slogan, “Food with Integrity” is intended to evoke the emotions of its customers with high standards of sustainability. The millennial generation is commonly referred to as the “connected generation”. This generation tends to be affluent, educated, and conscious of their surroundings. Chipotle’s strategy is to solidify its reputation with this generation by promoting humane food sourcing and organic farming.

Chipotle’s second value proposition, “Fast-Casual, Dinning” resonates with many consumers who are looking for quick, healthy, affordable meal options. By committing themselves to their customer’s time constraints, Chipotle is attracting and retaining people who do not mind paying about twice as much for a Chipotle meal as compared to a McDonald's or Taco Bell meal.

By educating consumers on