Case number 10: Chipotle Mexican Grill 2012: Can it hit a Second Home Run?
Group number: 3
Group members: * Vu Thanh Loc – accounting * Dang Hoai Nam – accounting * Tran Dieu Linh – accounting * Nguyen Thi Ngoc Diep – accounting * Phan Dang Mai Anh – accounting * Thach Dieu Huong – accounting * Pham Thien Trang – accounting * Dao Khanh Ly – accounting
EXECUTIVE SUMMARY
This case study is about Chipotle, a young fast food company. In 2012, Chipotle has shown a successful performance with its Grills. Following the path, Chipotle is building a new project which is the ShopHouse. The ShopHouse predicated on much the same strategy with the Grill but it had different menu. The problem discussed here is whether Chipotle can make the same success with its new project, the ShopHouse, by using the same strategy or not.
Chipotle is a young fast-food company which was found by Steve Ells in 1993. In 2001, McDonald's becomes the majority owner of the firm, making Chipotle a fully-owned subsidiary of McDonald's. In 2006, McDonald's says goodbye to Chipotle, spinning off the company in an IPO on the NYSE (CMG). From then on, Chipotle’s revenue and profit margin has been boosted up significantly. The products which Chipotle provides are fast food and drinks with simple menu strategy. Chipotle commits to provide “food with integrity” which is made of high-quality, organic ingredients which are usually supplied by a number of reputable food industry suppliers. Their service is very good because they serve very quickly and take good care of customers. They have 3 main competitors which are Taco Bell, Moe’s and Qdoba. In 2011, Chipotle has an idea of a new model – the ShopHouse. They now have the first store on DuPont circle in Washington D.C.
Analyzing the case leads to some major findings. Firstly, for the Mexican Grills, they have core competencies and some of them are distinctive: High quality