Chipotle Case Study Essay

Changes in interest rates on investments are also major factors that can cut in to the profit margins of an individual restaurant. These interest rates can significantly impact the overall cash flow. There is also a risk of foreign currency exchange when translating the EU into US Dollars. Although this is typically avoided due to most activities being transacted in the US, it is still a consideration that must be made (Chipotle Annual Reports, 2015). The lack of success that Chipotle has experienced in the UK is a red flag for our investment in Greece. Although the state of the economy in the UK is better than Greece, they are still having a hard time paying more than £5 for a lunch item (Wong, 2015). Chipotle also focuses on hiring passionate individuals who exhibit leadership skills and high standards. The managers work in a hands-on approach and the key to success is to create loyalty. Their brand awareness is significantly lacking, which is why they have only expanded into 36 international markets (Chipotle Annual Reports, 2015). As of 2015 Chipotle has expanded in to London, Paris and Frankfurt (23 restaurants in total). As a result of lack of brand awareness the Chipotle Annual Report stated that “new
The economy does not support an entirely new venture with no brand recognitions. Other countries within the EU have already had difficulties finding success with the Chipotle brand, and the awareness is not significant enough at this point to support the model. As Chipotle continues to grow within Europe, brand awareness will increase and we can reassess the investment. Also, as the state of the economy increases and disposable income heightens, we may be able to entertain the idea of investing in a location within Athens that will support the higher pricing structure for higher quality