Chipotle Mexican Grill has emphasized on their customers and are not afraid to remain sincere and acknowledge their errors, even when they are losing revenue. Last year Chipotle went through a crisis where they force the chains to close serval of restaurants due to a norovirus outbreak. Other food-borne illness cases were also related with Chipotle restaurants that includes E.coli, and salmonella. As a consequence, the company is under investigation. Also their sales and stocks have decline because of the outbreaks that occurred.…
Chipotle Mexican Grill was a concept turned reality by a gentleman by the name of Steve Ells. Chipotle Mexican Grill provides excellent Mexican cuisine driven by a concept of “Food with Integrity”. The first chipotle Mexican grill was opened in 1993 in Denver Colorado. By the end of 1995 there were three. In 1996 alone, Steve Ells opened five more Denver-area restaurants growing by a total of eight stores in three years. By 1998 Chipotle Mexican Grill was showing much promise. In order to meet their growth needs Chipotle took on outside investors. In 1999 they opened their first out-of-state stores in Minnesota and Ohio. As Steve was seeing rapid growth with his company, he was also noticing significant issues with the quality of the food being desired in this industry. After learning how pork was traditionally raised in the United States Steve Ells started his business down a new path. This lead to the concept of “Food with Integrity” , which was as a result of Steve’s decision to sell only the highest quality organic and naturally raised foods. Chipotle Mexican Grill continues to grow rapidly and in 2006 went public on the New York Stock Exchange. By 2012, Chipotle Mexican Grill had over 1400 company-owned stores taking over as the number two Mexican fast food restaurant for total sales in the US market. Today the overall business environment for Chipotle Mexican Grill is very good. The company has grown by over 50% since 2010 and is seeing increases in revenue averaging between 18% and 20% each year. Since going public the company has seen a 4000% return in their stock prices. Chipotle Mexican Grill continues to grow an average of 150+ stores per year. Based on their financial reporting for 2013 they had reached $3.21 billion in revenue. The significant amount of growth…
When Steve Ells decided to create a restaurant concept that combined the quick-serve experience with exceptional quality food, he didn’t know it would be an instant hit (Thompson, Peteraf, Gamble, & Strickland III, 2015). He was looking for a way to use his culinary training and restaurant experience to elevate the fast-food concept. This transformed the way people thought about fast-food. His concept centered on a focused menu serving only high-quality, fresh ingredients using traditional cooking methods and made-to-order preparation in a restaurant interior that was aesthetically pleasing but still prepared in under 2-3 minutes. And Chipotle Mexican Grill was born! Within six years of being open, Chipotle Mexican Grill went public on the New York Stock Exchange, doubling its stock price the first day (Thompson et al., 2015). Year after year, Chipotle has been able to grow revenue from $3.2 billion to $4.1 billion ("CHIPOTLE MEXICAN GRILL INC (CMG:New York): Financial Statements - BusinessWeek," n.d.). See Exhibit 2 for Chipotle’s Financial Statement.…
Founded by Steve Ellis in 1993, his main focus was to transform "fast food" to an experience more similar to fine dining. Taking inspiration from features commonly found in fine-dining, he wanted the strategy for Chipotle Mexican Grill to focus on the following five elements:…
Chipotle operates under a single business strategy in which it generated at least 95% of revenue from corporate owed restaurant. The advantage of having a single business strategy is that Chipotle focused their operation on one idea to expand their opportunity and growth. They focus their growth on Chipotle Mexican Grill domestically and internationally. Chipotle devoted their effort to one concept allowed them to create a more comprehensive plan. All their departments are working towards the same goals and objectives which can lead to better management.…
As we look at our current economical status, we see how the global financial market is in turbulence due to changes in demographics. To subdue these changes Costco has constantly tried to pull in and retain customers. This allows them to keep a strong position in market share and acquiring profits. Costco is in the membership wholesale industry that provides merchandize at a much lower price than others. Although Costco is one of the biggest companies in the USA, there are many strengths and weaknesses in their strategy. Taken that Costco has many competitors, it must continue to respond to industry pressure through innovation. Considering the many accomplishments of Costco, there are many things they can improve on. Increasing profitability…
In the 90's it was very hard to find a fast pace food environment that could actually serve quality food, that’s where Chipotle began to stand out. Bringing authentic and fresh Mexican ingredients is one of the many things that makes chipotle stand out to their competition. Chipotle meats are fresh, never frozen, left over night to marinate and grilled fresh every hour .They raise their cattle in humane conditions which help the quality of their meat, from my experience at dinging in this restaurant it always carries a peculiar taste as compared to other restaurants who have added hormones to enhance flavors. You can taste the unadulterated flavors in their vegetables, salsas, and guacamole versus the genetically modified condiments provided at other establishments. Chipotle is one of the few places that thrive on quality and quantity in a fast food environment yet still guarantying fresh flavorful organic ingredients. For those who are now a part of the health conscious wave this is without a doubt the best option for not only them but for…
Inspired by authentic ingredients and the economic model of one local taqueria store in San-Francisco, Steve Ells began to open the first Chipotle store in 1993 at a former Dolly Madison ice cream location near University of Denver campus. The first Chipotle was a wide success. After two years since the first Chipotle opened, Steve added the second and third Chipotle locations. In 1996, Chipotle Denver area restaurant opened. Following the extraordinary successes, Chipotle was able to invite more outside investors to expand the scale of production to give way for the Chipotle’s openings outside of Colorado: Minneapolis, MN, Columbus and OH. After Steve visited some individual local farms, he found out pigs were raised in air-opening area as opposed to the way majority of pigs were raised. So he decided to dg pork and chicken naturally.…
Did you know too much sugar contained in diets such as; chips, sandwiches, burgers, pizza and soft drinks, can make your hair fall off? Most fast foods are sources of many health problems, such as overweight, heart diseases and Peptic Ulcers. However, there are some nutritious types of these foods including; grilled chicken nuggets, salads, fruit cups and milk because they contain a low level of calories. Several restaurants have learnt the importance of healthy eating, and are offering wholesome menus.…
It has come to my attention that there has been a decrease in productivity in the overall staff. At Chipotle, we must pride ourselves in being the fastest and most effective company around. In an effort to increase productivity and maintain 100% customer satisfaction, I suggest that all employees that were hired before April 10th, 2016, should undergo mandatory Productivity and Efficiency Reform Training.…
I do not believe other retailers should close on Sundays just because Chick- Fil-A is doing so. Every business has its ways to conduct operations. I think they should develop a culture that is unique to them; something that represent company’s core values. Just because it worked for Chick-Fil-A does not guarantee it will work for others.…
This is crucial for a high quality presentation, because it helps support your main ideas and helps give credibility to your argument. In addition, data and graphs make it easier for your audience to interpret your ideas. This was also one of my negatives from the first board evaluation on the external analysis summary; therefore, it will be interesting to see going forward if you will change and add more data/numbers in your final presentation. An idea/theory that needs to also be discussed more is the lack of international expansion of Chipotle. This was briefly discussed in the presentation and could be a very good strategy that Chipotle needs to take in the future. In addition, since Chipotle only has 20 international locations it seems that there is more market or geographical challenges that Chipotle faces and can’t figure out how to…
Innovative value adding attributes often come from operations execution and not just from the actual product. Chipotle has become a leader in the fast food industry with the creation of an enhanced fast food experience. Chipotle’s edgy and modern design enhances customer experience while integrating elements of the tradition restaurant with a fast food service.…
Orlando, great examples! Chipotle has certainly made a name for themselves for their uniqueness and organic menu. They have clearly differentiated themselves from other competitors. In addition, your examples of point-of-parity make perfect sense because it’s the same product made by different competitors. However, does points-of-difference and points-of-parity of a company depend on the perception of the individual…
Chipotle and Subway both have self serve stations. This is a suitable device to have because it helps with portion control according to the customers liking. This can be great for people who have diets that limit certain ingredients. For example, people who take place the Atkins diet they cannot eat a lot of carbs so they can control what goes in their meal. Also, in both restaurants you can choose what type of bread you would like. You can additionally add or remove vegetables to your enjoying. Chipotle and Subway also both promote the idea of healthy eating. On commercials and advertisements Chipotle uses the phrase “food with integrity.” Subway uses spokesman Jared Fogle to share his story on how he lost weight by eating Subway. These are great ways to get people into eating right, because people want to see results, and fast! Another similarity Chipotle and Subway have is the basic price of a meal. The price for a meal in both places will run around $8.00 to $10.00 dollars, depending on what you get. This is a little above what you would spend at another place, but healthy eating is always more expensive.…