...BUS100 26OCT2013 During the course of this paper it is my intent to analyze the strength and weaknesses of Chipotle Mexican Grill in hopes of finding a way that the restaurant chain could boost profit and/or productivity. Chipotle Mexican Grill has many things going for them and against them since opening in 1993 (Wikipedia, 2013). To start with let’s talk about their weaknesses or things they could do better. They don’t seem to be very creative in making new products, they don’t have much of a kids menu, and they’re not that global (Wikiswot). Creating new items isn’t always a make or break thing, but they could still try some new things out every once in awhile. The kids menu is pretty weak and limited 2 soft or crispy taco’s, but not allowed to have 1 of each, three ingredients to include one meat or guacamole, really? (Chipotle, 2013). They are kids, small people; it would not kill Chipotle’s bottom line to let the kids actually pick anything they want, limiting to three items (kids’ servings). Yes, they have a few places outside of the US (France, Germany & UK), but not many, they really could try to expand more to other places like around the Asian/eastern Asia countries (Wikipedia, 2013). Enough of the bad stuff and onto the strengths of Chipotle include low prices, loyal customers, financially strong/stable, they use “green” construction (Wikiswot). Their pricing is comfortable for just about everybody in every...
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...Chipotle Mexican Grill in 2012: Can It Hit a Second Home Run? To: Dr. Dulek From: Yunhan Weng Subject: Chipotle Case Study I. Executive Summary…………………………………………… Page 3 II. Recommendations………………………………………..……. Page 4 III. Porter’s Five Force Analysis…………………………………… Page 6 IV. SWOT Analysis…………………………...…………………… Page 8 V. The Five Generic Competitive Strategies……….……………... Page 12 VI. P.E.S.T Analyses………………………………………….…… Page 13 VII. Key Success Factors…………………………………………… Page 15 VIII. Driving Forces…………………………………………………. Page 16 I. Executive Summary: Chipotle is a young fast food company. In early 2012, Chipotle made its first home run. As a result, Chipotle is planning to start a new project called the “ShopHouse”. The CEO of Chipotle said, “I have always believed that the Chipotle model could work well with a variety of different cuisines”. Actually, ShopHouse predicated on much the same strategic principles as Chipotle Mexican Grill. However, it offered a different menu. Chipotle was established by Steve Ells in 1993, and the first Chipotle restaurant was built in Denver Colorado. The time Steve Ells opened his first restaurant, he believed that food served fast did not have to be low quality and that delicious food did not have to be expanse. Based on this concept, Chipotle Mexican Grill appeared to the world. In early 2000, McDonald acquired an initial ownership of Chipotle. What unexpected is that McDonald’s top management decided...
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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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...Chipotle Mexican Grill 2013 STRAMAN K32 Calvin & Friends Adorable, Celine Del Rosario, Calvin Gallego, Vince Case 5: CHIPOTLE MEXICAN GRILL IN 2013 1. Does Chipotle Mexican Grill have any core competencies and, if so, what are they? ● Yes ● high quality but still affordable and quick ● fast casual restaurant that makes use of healthy ingredients ○ genetically modified ingredients are specified in their website ○ healthy amount of protein (40 50 grams) 2. What does a SWOT analysis reveal about the attractiveness of Chipotle Mexican Grill’s situation and future prospects? Strengths: ● Locally sourced ingredients ● Quick service ● Upscale dining compared to other fast foods Weakness: ● They have a limited selection of dishes Opportunities: ● They attract consumers who are conscious of food nutrition ● Online ordering because of technological advancement Threats: ● Price volatility and shortage of organically grown ingredients and natural meats 3. What are the primary and secondary components of Chipotle’s value chain? Primary: ● “Food with Integrity” Topquality, nutritious ingredients ● Quick orders with upscale dining ● Great customer service Secondary: ● Assembly line process, ● Use of billboard, and radio ads to market 4. What are the chief components of Chipotle’s strategy? Chief components of Chipotle’s strategy is to have small selection in their menu with quick orders, highquality food but low priced and good...
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...STRAMAN K32 Calvin & Friends Adorable, Celine Del Rosario, Calvin Gallego, Vince Case 5: CHIPOTLE MEXICAN GRILL IN 2013 1. Does Chipotle Mexican Grill have any core competencies and, if so, what are they? ● Yes ● high quality but still affordable and quick ● fast casual restaurant that makes use of healthy ingredients ○ genetically modified ingredients are specified in their website ○ healthy amount of protein (40 50 grams) 2. What does a SWOT analysis reveal about the attractiveness of Chipotle Mexican Grill’s situation and future prospects? Strengths: ● Locally sourced ingredients ● Quick service ● Upscale dining compared to other fast foods Weakness: ● They have a limited selection of dishes Opportunities: ● They attract consumers who are conscious of food nutrition ● Online ordering because of technological advancement Threats: ● Price volatility and shortage of organically grown ingredients and natural meats 3. What are the primary and secondary components of Chipotle’s value chain? Primary: ● “Food with Integrity” Topquality, nutritious ingredients ● Quick orders with upscale dining ● Great customer service Secondary: ● Assembly line process, ● Use of billboard, and radio ads to market 4. What are the chief components of Chipotle’s strategy? Chief components of Chipotle’s strategy is to have small selection in their menu with quick orders, highquality food but low priced and good customer interaction. 5. Wh...
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...Chipotle Mexican Grill Inc. I. Analysis of the Problem Chipotle Mexican Grill Inc. has experienced abundant success as the fastest growing restaurant chain in the United States and has dominated a large share of the fast-casual Mexican market. Chipotle was ranked eighth in a list of fastest-growing chains in 2009 and third in 2010 based on increases in U.S. sales during that time period. In order to sustain growth and build on accelerated success, Chipotle Mexican Grill Inc. must implement a variety of strategy over the next five years to account for the new competitive market, new technologies, developments via the Internet and eMarketing, and new segmentation and positioning imperatives. Culinary artist and line cook Steve Ellis established Chipotle Mexican Grill Inc. in 1993 in Denver Colorado after noting the popularity of taquerias and other Tex Mex food items in the San Francisco area (wikipedia.com). In 1998, McDonald’s made an initial minority investment in the corporation and become its largest investor by 2001 (wikipedia.com). The investment from McDonald’s granted Chipotle the opportunity to quickly expand from 16 restaurants in 1998 to 837 locations in 2009 (wikipedia.com, slideshare.net). While Chipotle is one of the fastest growing restaurants in North America, the corporation faces competition from corporations such as Moe’s Southwest Grill, Qdoba Mexican Grill, Rubio’s Fresh Mexican Grill, Panchero’s Mexican Grill, and Baja Fresh (wikipedia.com). In...
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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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...The restaurant I decided to analysis the SWOT of to determine its competitive advantages was The Chipotle Mexican Grill. This is a very established restaurant with restaurants located in 40 of the 50 states and the District of Columbia with a total of 1128 locations all together. They are all company owned locations and are not franchised. This is a good thing because in a franchise is defined as a licensing arrangement under which a franchisor allows franchisees to use its name, trademark, products, business methods and other property in exchange for monetary payments and other considerations. Since they are company owned, the same desire to serve a great product can be stressed throughout all of their locations. It is always the possibility of a franchisee that may be more concerned with just making a profit and taking into consideration the product their business is producing. Chipotle Mexican Grill has several strengths that they are utilizing extremely well. I think that their greatest strength is the fact that their menu is very streamline with interchangeable items. They have a total of five items on the menu the burrito, burrito bowl, crispy taco, soft taco, and salad, along with offering an appetizer of chips and guacamole and their salsas. Because of the fact that their menu items use many of the same ingredients, this is a great way of cutting down of the expense of buying a lot of different produce to prepare their items and they can stay focused on their aim...
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...Individual Strategic Assignment: Chipotle Mexican Grill Royal Roads University BUSA506 – Strategy Instructor: Dr. Terry Powers Craig Westcott November 22, 2015 Word Count: 2,050 Steve Ells may not have invented the “fast-casual” sector, but since his founding of Chipotle Mexican Grill in 1993, he has shepherded the development of the restaurant chain which many in the industry might say best exemplifies it. Growing Chipotle from a single unit Denver-based operation to an international 1,230-unit chain which one Wall Street analyst called “the perfect stock,” Ells, a Culinary Institute of America graduate, set out with a vision “to change the way people think about and eat fast food.” When Chipotle announced the launch of a second restaurant concept, ShopHouse Southeast Asian Kitchen, putting to the test Ells’ belief that “the Chipotle model could work well with a variety of different cuisines,” it left many optimistic that lighting, perhaps, could strike twice and that ShopHouse might prove to be a second home run for both Ells and Chipotle. Core Competencies Chipotle Mexican Grill has two core competencies that can best be rolled up and described as “the Chipotle Experience,” namely the quality of their food, prepared as per Ells’ mantra of “slow food served fast,” and their setting being more upscale than a traditional fast food restaurant. Figure 1 – Core and Distinctive Competencies Figure 1 illustrates that these core competencies are arrived...
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...Mr. Steve Ells, Co-CEO and Chairman of Chipolte Mexican Grill (also called Chipolte) has employed you as a consultant and asked you to assess the company’s strategy, competitive market position and overall situation, and to recommend a set of actions to help ensure that Chipolte continue its current growth and maintain its long-term competitiveness. Please prepare a report to Mr. Ells that assesses the long-run profitability of the fast casual restaurant industry, the quality of Chipolte’s internal situation and that makes specific recommendations on how they can attain their goals. In analyzing the situation be sure to perform a thorough Industry and Competitive Analysis (e.g., DEC, Porter’s 5 –forces, Driving Forces, KSF’s, competitor analysis, etc.) as well as an analysis of Chilpote's internal situation including its business level strategy, their resources and competitive capabilities (e.g., SWOT and VRIO), a Competitor Analysis (a discussion of key competitors and a group map) and a Performance Analysis (financial (use the information from Case Exhibit 1) and strategic). Your recommendations should be specific, actionable and should logically flow from your analyses. Key problems: 1. Competition 2. Maintaining commitment to “food with integrity”- rising prices Possible solutions: 1. Expanding into new markets like Shophouse Asia Kitchen and maintaining high quality ingredients 2. Partnering/investing with local farmers markets and suppliers Best Solution: ...
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...Individual Case Analysis Chipotle Mexican Grill September 30, 2015 1. According to the case study, Chipotle Mexican Grill does have core competencies. They are specialized in designing a quick-serve menu which appeals to customers and the reason why it works because when customers watching the menu they would know what they want to eat either burrito bowls, tacos or salads that helps solve with the problem of time consuming on food selection, thereby promotes operational efficiency. For the another core competencies, it should be skills in creating a restaurant layout and serving line design that efficient the food-ordering and dish-creation process so that more customers could be served. It is obviously to see that Chipotle’s operation strategy is to make things simple to customers with high food quality and good taste experience. 2 The SWOT analysis revealed the attractiveness of Chipotle Mexican Grill’s situation that Chipotle’s resource strengths and the good coordinates between these strengths and the company’s market opportunities make it more attractive on current situation and short-term and long term revenue and profits growth. And its weakness and external threats is not that significant enough to overwhelm its attractiveness of the company itself in the market...
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...I. Strategic Profile and Case Analysis Purpose: Chipotle Mexican Grill, Inc. is a chain of restaurants, which serve quality and taste food across United States, United Kingdom, Canada and France. The name Chipotle was derives from the Mexican Spanish name for a smoked and dried jalapeno chili. Steve Ells founded the company in July 13, 1993. Its headquarters is located in Denver, Colorado, USA. There are 1430 restaurants operating in 4 countries and have 37,310 employees as of 2012. It is one of the fastest growing U.S restaurants. Chipotle had a net income of $278 million in 2012. The Company’s restaurants serve menu of burritos, tacos, burrito bowls and salads. The main goal of Chipotle is to serve high quality, delicious food quickly with an experience that not only exceeded, but also redefined the fast food experiences. The always focus on sourcing the best possible ingredients, serving the tastiest food, and the most capable team. In past Chipotle only advertise on radio, billboards but recently they are using television and social media to advertise. They are also running various program, events and promotions giving out free food to potential customers. Chipotle has the quote " Food with Integrity". The " Food with Integrity" refers to the people, animals, environment and FWI facts. Food with Integrity is good in order to help out with the health, economic condition of the surrounding the restaurant. We can find the food use by the different food industries but where...
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...SITUATION..................................5 1 Past and actual success ENVIRONMENTAL ANALYSIS..........................................10 1. Macro analysis : PESTEL 2. Micro analysis: PORTER 5 FORCES TREND..............................................................................14 COMPETITOR ANALYSIS...............................................15 FUTURE GROWTH POTENTIAL....................................16 SWOT ANALYSIS..............................................................17 ASSUMPTIONS................................................................18 MISSION, DIRECTION AND OBJECTIVES....................20 Financial Objectives Marketing Objectives Social 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...
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...Chipotle Mexican Grill, Inc. in Beijing, China Goal The goal of the well-known fast food restaurant chain, Chipotle Mexican Grill, Inc., is to introduce the franchise to a brand new market, Beijing, China. The market is totally different for many perspectives, such as Asian culture and different customer base. It will be very important and challenge to find effective ways to attract dinners. Hence, Chipotle Mexican Grill, Inc. has to build and promote a new definition for fast food, which is healthy. People in Beijing, China become more and more pay attention to the food they eat and whether it is safe and healthy. The developing process will definitely not be easy, so the corporation needs to seek ways to overcome all the possible barriers and problems it may happen in the future. The ultimate goal is to survive and to be successful in the new market, and slowly and stably expand franchises in Beijing, China, and growing 15 percent of the market share within one year. Introduction Chipotle Mexican Grill, Inc. is a fast food restaurant chain that was founded by Steve Ells in 1993. Ells used his father’s loan, $85,000, to open the first Chipotle restaurant in Denver, Colorado. It became a huge success by selling over 1,000 burritos a day. The second store opened two years later, also in Colorado. The father of Ells invested $1.5 million, and then Ells used the funds to expand Chipotle by creating a board of director and business plan. In 1998, McDonald’s made a small...
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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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