...Chipotle Mexican Grill was founded by Steve Ells and has carried the mission statement, “Food with Integrity”, since the genesis of the chain (2). After its founding, Chipotle has seen wild success and now has 1,700 locations, even some overseas (2). The chain grossed over $327 million and employs 45,000 people (2). It is a true success story and it even considered the most sustainable restaurant chain. They only use naturally raised meat and organic ingredients that meet their guidelines. Chipotle has grown exponentially since their founding, and that is a part of the problem. Even though Chipotle has had massive success, they are starting to run into some trouble with their sustainable model. The chain has become so big, it is hard for them to essentially sustain sustainability. Their organic ingredients and naturally raised meat are at the root of the dilemma. They are expensive and it is hard to maintain the flow and volume of organics and naturally raised meat that Chipotle constantly craves (4). It seems as though they have become too big for sustainability and it is very worrisome. Chipotle might just be the test subject to see if substantial sustainability is possible on a large scale. Chipotle needs to buy their own farms so they can streamline the process. If they vertically integrate the company so they can run their farms in a manner that is compatible with their mission statement. They would also be able to save more money this way. They would be...
Words: 1720 - Pages: 7
...Chipotle's CSR: Mission or Marketing? Megan Rehkemper Webster Abstract Companies with CSR stated standards tend to make the headlines when their actual business practices are contrary to those standards. Chipotle, one of the fastest growing chain restaurants, is no stranger to this controversy. The company has made great strides in offering “Food with Integrity” yet it still lacks in credibility. This paper will analyze Chipotle’s CSR and how its standards have led many to question the company’s core values. Chipotle's CSR: Mission or Marketing? The heightened media attention on CSR is at least partially in response to society’s interest in socially conscious businesses. Consumers are willing to pay a premium price for environmentally-friendly brands. At the same time, there is much skepticism as to whether companies are intentionally or accidently misleading consumers. Chipotle, one of the fastest growing fast-casual restaurant chains in the world, declares it serves “Food with Integrity”. What does that mean? The company’s reputation has taken some hits in recent years due to lack of transparency. Lessons have been learned along the way yet there is still a credibility gap. Many wonder if Chipotle is telling the public a feel-good story or the truth. This paper will take a look at the company’s CSR: intent vs. execution vs. depiction. Genetically Modified Organisms GMO’s are plants or animals who have been inserted with a gene from an unrelated species...
Words: 2771 - Pages: 12
...that apply to all people and should definitely be held high within the workplace. Social Responsibility is the obligation of a business to contribute to society. Chipotle’s social responsibility affects employees, customers, investors, the community, and the environment. Chipotle Mexican Grill opened in 1993 by a man named Steve Ells. The mission of the company is putting a focus on food with integrity, great service, and teamwork within their many restaurants. The opening statement of Chipotle’s Code of Conduct is as follows, “Chipotle is committed to the highest standards of integrity in all of our activities and compliance with both the letter and spirit of the law. We expect that you will reflect these standards in your day-to-day dealings on our behalf. This Code of Conduct is for all employees, Officers, and all members of the Board of Directors. It is a guide to ethical behavior” ("Code of conduct"). All staff members at Chipotle are expected to fulfill the mission of the company while complying with the code of conduct and using ethical behavior. Chipotle’s opening statement enforces the importance of integrity and compliance while employees are employed with the company, and is a clear and concise expectation that employees are able to understand and comply with. Another important area within Chipotle’s code of...
Words: 1090 - Pages: 5
...opinion revolutionized the way restaurants are structured now. The menu is not complicated and very simple, meaning it does not have a large variety of different dishes, but they give the customer the ability to customize and create each dish the way the customers like. Chipotle’s mission statement is as follows, “Food with integrity is our commitment to finding the very best ingredients raised with respect for the animals, the environment and the farmers.” This statement not only defines their mission, but also expresses their ethics. Their main goal is to provide food with integrity. What is food with integrity? Food with integrity comes from reliable sources that treat the food with the utmost care. In today’s environment, because of mass production, a lot of the food that is offered either comes from different types of places without the knowledge of what it has been through. For example, in the recent past, the problem with pink slime, which is an additive to ground beef and other beef processed meats and is exposed to either ammonia gas or citric acid to kill bacteria. ABC News did news reports about the product and uncovered that 70 percent of ground beef sold in the United States contained this. Chipotle’s food is unlike its competitors, they use meat from animals that are raised without the use of antibiotics or hormones. How Chipotle...
Words: 1010 - Pages: 5
...discussions have been made about the Key Areas of Chipotle’s code of conduct that are of major importance for their business. In addition, key steps of Chipotle for implementing the code of conduct for ensuring employees to follow the code of conduct. Moreover, key ways of Chipotle to engage in socially responsive activities have also been included as a discussion in this paper. Key Areas of Chipotle’s Code of Conduct Morals and social obligation are imperative ranges inside Chipotle Mexican Grill's business. Both areas have an intuitive relationship that assumes a part in building gainful organizations and also a balanced group. Morals allude to sets of convictions about good and bad; and business morals include the application of these issues in the work environment. The general moral gauges, which include dependability, regard, obligation, decency, mindful, and citizenship, are benchmarks that apply to all individuals and ought to unquestionably be held high inside the working environment. Social Responsibility is the commitment of a business to help society. Chipotle's social obligation influences representatives, clients, speculators, the group, and nature's turf. In 1993, Chipotle Mexican Grill was founded by Steve Ells. The mission of the organization is putting a concentrate on sustenance with honesty, incredible administration, and collaboration inside their numerous restaurants. The opening proclamation of Chipotle's Code of Conduct is as takes after, "Chipotle is...
Words: 1215 - Pages: 5
...market success and financial performance of the organization Chipotle. Despite Chipotle being in business for 20 years, they have struggled to find their point of differentiation to market to their customers. In the last three years, Chipotle has used PR to communicate their mission statement and company focus of telling their story about what their mission “Food with Integrity” means and is all about. By focusing their efforts on communicating this story they have increased brand recognition, value and have lead to increased financial performance. Company Overview Chipotle was founded in Denver, Colorado in 1993. Their goal from the beginning was to use high-quality raw ingredients, with classic cooking methods and a distinctive interior design and friendly staff. They wanted to step themselves apart from other fast food restaurants and competitors like McDonald’s, KFC, Taco Bell and Pizza Hut and ended up creating their own category called “fast-casual” (Phillips, 2010). According to the company website they have always had this statement of “Food with Integrity” but they didn’t promote it or explain what it was all about. In 2010, they addressed this by making it their mission statement and what they place value on. Food with Integrity means to know where all of their ingredients come from, be a flavorful as possible, understand the environmental and societal impact of their business and have a commitment to finding the very best ingredients raised with respect for the...
Words: 1969 - Pages: 8
...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...
Words: 1509 - Pages: 7
...the animals, the environment, and the farmers.” In addition to promoting its high quality, fresh ingredients, Chipotle offers consumers a customizable menu with an open kitchen atmosphere and assembly line food preparation. This allows customers to obtain high quality food quickly and efficiently. Customers Chipotle has done an impeccable job of building customer loyalty. The company has gained this following mainly by word of mouth, considering the company has a small advertising budget of only $4.5 million, less than 1% of its revenue, as of 2011. Considering this small advertising expenditure, it is impressive that the company has fared so well. Chipotle’s customer loyalty can be seen in its increasing demand and through multiple Chipotle fan pages such as a Facebook fan page called The Church of Chipotle. Chipotle’s customers tend to be young, approximately ages 18-34, with at least a Bachelor’s degree. These young consumers, who are often in a hurry or choose not to cook at home, look for high quality, yet...
Words: 2426 - Pages: 10
... Leaders and Leadership …………………….…………...……….……..4 Planning: Company Strategy, Mission, and Vision …...……………..…5 Evidence of PLOC4E2 …………………………………………..…...…6 Strategic Human Resource Management Policies and Philosophies ...…8 Types of Innovation and Evidence of Entrepreneurship …………...….10 Team Management and Dynamics ………………………………...…..12 Operations Management ………………………………………...…….13 Communication and Information Tech Management …………………14 Globalization Presence and Effects ……………………………...……16 Corporate Social Responsibility and Consciousness ……………...…..17 Conclusion ……………………………………………………………19 Figures …………………………………………………………...……20 Introduction Since its inception, Chipotle Mexican Grill has set itself apart from the rest of the fast food industry. Not only does Chipotle prepare food right in front of the customer, but the food put into the product is filled with “integrity”. Chipotle has established “Food with Integrity’ which is their commitment to finding the very best ingredients, raised with respect for animals, the environment and the farmers (chipotle.com). This mantra is what drives every action of Chipotle from planning for obtaining sustainable products with a growing company to organizing their employee structure in order to keep employees around for a long time. With this mission and vision, Chipotle Mexican Grill is able to differentiate them and rise above the...
Words: 7283 - Pages: 30
...that experience growth trends similar to that of Chipotle’s, however, as a result of the rapid expansion and gains in sales, most of these corporations tend to neglect their corporate social responsibilities (CSR). Chipotle, on the other hand, does not fall susceptible to this trend. Through a complete examination of Chipotle’s CSR initiatives and activities, as well as detailed explanations of Chipotle’s contributions to the three “pillars” of sustainable development, one is able to see that Chipotle is a leader and an innovator in its industry regarding the corporate management of ethical dilemmas and moral responsibilities. A thorough comparison with a similar corporation in the same industry, Moe’s Southwest Grill, Inc., provides further evidence that Chipotle places immense value corporate transparency and quality morals in addition to being a genuinely ethical and responsible corporation. Following the major comparison are explanations of possible underlying motives and “market nudges” leading Chipotle to participate in particular CSR activities. Lastly, a discussion of government initiatives and potential upcoming regulations has been included to indicate the possible future direction of every firm’s corporate social responsibilities. Does Chipotle contribute to every “pillar” of sustainable development (environmental, social and economic)? In short, the answer is yes they do, both internally (referring to Chipotle’s normal supply chain operations) as well as externally...
Words: 6599 - Pages: 27
...Case 6 Chipotle: the Challenges of integrity ryan ruud, Jennifer lee, garrett Borges, Monica Bethke, ron Bomkamp, preston Jensen arizona state University ‘Fresh is not enough anymore.’ Steve Ells Chipotle Co-CEO, Founder, and Chair Introduction Chipotle Mexican Grill (NYSE: CMG) in the USA has experienced great success satisfying the desire of consumers for a quick-serve restaurant that does not sacrifice quality for speed. Known in the food industry as a ‘fast-casual’ restaurant, Chipotle is part of the fastest growing segment of the restaurant industry.1 With annual revenues pushing US$2 billion and a stock price that doubled in 2010, Chipotle’s steady growth and strong financial statements make it highly attractive to investors (see Tables 1–3). Chipotle achieves customer satisfaction while maintaining a unique vision that has committed the company to ‘finding the very best ingredients raised with respect for the animals, the environment, and the farmers’.2 Coupled with a deceptively simple menu that allows for over 60 000 different burrito combinations alone, interactive ordering so customers can personalise their experience and meal, and a reasonable price, it’s no wonder Chipotle restaurants are full of happy customers and that the company has grown to nearly 1100 locations in only 17 years. History At an age when most of his peer group was still watching cartoons, Steve Ells was a dedicated fan of Julia Childs’ cooking show on US public broadcaster PBS...
Words: 12009 - Pages: 49
...Grill, Inc. is actually the chain of restaurants based in the United States but has now expanded into the United Kingdom, Canada, Germany and France. The mission statement of this company is Food with Integrity and this company deals with the usage of organic ingredients. This company is famous for its naturally raised meats and maintains that they are better than other restaurants. The customers are satisfied with the services and products of this company. In this case, we will explore the strategy of Chipotle’s Customer Relationship Management (CRM). Ethical Issues involved in Marketing to the Customer Like every other company, Chipotle also performs various activities to advertise its business in marketing. Marketing is not an easy process to perform as there are numerous factors that need consideration. If the marketing strategy of a company is well implemented, then the business products can be presented effectively to the company’s customers. According to the information discovered over the multiple papers written, I have come to understand that Chipotle has faced some issues in the marketing of its products to its customers. Following issues are considered by people against Chipotle’s advertisements (Liebelson, 2015). Does Chipotle’s support GMOs? This was the main question that was raised against Chipotle’s advertisement as it recently released a Pixar-style short film or “commercial” (Liebelson, 2015). For understanding purposes, GMOs means Genetically Modified...
Words: 2108 - Pages: 9
...Competencies 3 II. SWOT Analysis 3 Internal Analysis: Strengths & Weaknesses External Analysis: Opportunities & Threats Future Prospects III. Value Chain Analysis 5 Primary Activities Support Activities IV. Generic Competitive Strategy 6 Chipotle’s Strategy for Success V. Financial & Operating Performance 6 VI. Analysis of Competition 6 Rival with Strongest Resources & Capabilities Chief Differences Between Chipotle’s & Moe’s Strategies Can Chipotle Compete Effectively Against Taco Bell? VII. Recommendations 7 VIII. Appendix 8 Works Cited 13 In 2012, an analyst on Wall Street referred to Chipotle Mexican Grill as “the perfect stock”, while another suggested it could become “the next McDonald’s” (Thompson C-114). Since it’s founding in 1993, Chipotle has utilized founder Steve Ells’ leadership and culinary expertise to execute its vision of “changing the way people think about and eat fast food” (Thompson, C-114). From the day Chipotle’s first restaurant opened its doors to now running 1230 restaurants in three countries, it has become a huge success and has caught the attention of leaders in the industry. One fascinating element of Chipotle’s strategy that has allowed it to differentiate itself from rivals is that it never tried to compete directly against front-runners such as its previous owner, McDonald’s, nor expand too quickly. Under the effective leadership of Ells, Chipotle has grown at a sustainable...
Words: 4377 - Pages: 18
...Restaurants: Do Healthy Menus Mean Positive Financial Performance? A Case Study of Chipotle Mexican Grill An honors thesis presented to the Department of Accounting, University at Albany, State University of New York in partial fulfillment of the requirements for graduation from The Honors College. Cara N. Veneziano Research Advisor: Raymond K. Van Ness, Ph.D. May, 2013 Abstract The purpose of this study is to assess the consequences of offering healthy menus versus providing historically popular fast foods. Healthier foods are better for society and being able to understand how serving healthier menus will impact the financial performance of a company is crucial. I focus my attention on Chipotle Mexican Grill since it has been making a concerted effort to provide healthier foods. I have selected McDonald’s Corporation as a benchmark comparison. My specific investigative question is: Does a healthier menu translate into greater profits. My study begins with a comparison of Chipotle and McDonald’s meal options and ingredients in order to assess the overall health of their menus. This comparison revealed that Chipotle clearly had a healthier menu. Succeeding the menu comparisons, a financial analysis was performed on Chipotle and McDonald’s. The results of this study found that Chipotle, the healthier company, performed better in terms of Share Price, Stock Volatility, and Liquidity. The findings indicate that McDonald’s, the unhealthier firm, performed...
Words: 4137 - Pages: 17
...Villarreal English 1301 17 September 2014 Chipotle versus Freebirds! World Burrito There are many options to choose from when deciding where to get a burrito. When choosing do you look for quality, or quantity? The heavily debated question: Chipotle versus Freebirds! World Burrito, which is superior? Both of these hot Mexican-food-fast spots specialize in the “create your own burrito” ideal and use nothing but all natural, hormone free, organic ingredients. All the same, each establishment has acquired its own die-hard following. People are generally devoted to one and argue that their favorite exceeds the competition. From burritos, to tacos, or everyone’s favorite – the burrito bowl, both of these establishments have similar menus; but what are the key differences between the seemingly similar grub?...
Words: 389 - Pages: 2
