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Marketing Strategy Implementation ̶ Part I
Chipotle business objectives
Chipotle business objectives
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Recommended: Marketing Strategy Implementation ̶ Part I
Chipotle Mexican Grill is one of the fastest growing restaurant businesses in the United States. Chipotle was founded by Steve Ells (current CEO) in Denver Colorado, in 1993 (Forbes, 2016). Chipotle Mexican Grill headquarters are located at 1401 Wynkoop Street, Denver, Colorado 80202 (Yahoo Finance, 2016). The business is focused on serving the fast casual fresh Mexican food restaurant market.
Chipotle Mexican Grill’s strategic vision is “Food with Integrity” (Baylis, 2012). The company focuses on producing a product that is made from sustainable sources. The business also prides itself on selling products made with the finest ingredients. The concept of fresh food is important to the company because that is one part of the company’s vision, “Food with Integrity”. Chipotle’s product line consists of burritos, tacos, burrito bowls, and salads (Forbes, 2016). The company tries to differentiate itself through convenience of their products. It also uses higher quality ingredients in their food to show that the restaurant is different (Investopedia, 2015). Their environment is very modern and eco-friendly which also appeals to many consumers.
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A burrito is essentially a mix of different ingredients that are folded and wrapped into a tortilla. Chipotle currently offers this burrito with the beef, chicken, carnitas, sofritas, or veggie option (Investopedia, 2015). I believe that this product has much more potential than what it currently has. One of the biggest complaints at Chipotle from my conversations with their customers is the lack of desert. Other restaurants offer the option to eat dessert, however Chipotle is lacking in that aspect. My marketing strategy would involve marketing the burrito as a “dessert burrito”. This is currently an untapped area for Chipotle and could improve the way the burrito is marketed at
The company is driven by a strong set of values, even if some of those decisions increase its costs internally. This is especially the case with the sourcing of its ingredients and meats. In fact, the high-quality ingredients and advanced cooking methods used by Chipotle are second to no other fast-food chain. Among recent developments, the leader in fast-casual dining concepts plans to become absolutely GMO-free by the end of 2014. Although the aim is not new, it shows Chipotle’s commitment to bring fresh ingredients to the table. Besides offering high-quality meals to its customers, the portions are generously sized and the value is unmatched. There are very few places that can fill you up for less that $10 with quality food, and not junk. The triad of fresh, pure ingredients, cutting-edge cooking methods, and tremendous portions gives Chipotle a mouthwatering appeal.
Chuy’s Tex-Mex Restaurant started in 1982 in Austin, TX off Barton Springs Rd. It was the vision of two friends, Mike Young and John Zapp. They wanted to create a restaurant that offered quality food, diverse options, and affordable prices. The first location was in an old, abandoned BBQ shack with limited room and space, but it would certainly do. Mike and John ran low on their budget for décor and ended up with $20 to spend. John went out to find as much décor as possible. “You can’t fake cheap.” said, John. One of the items John came back with was a velvet canvas of Elvis; thus the beginning of the signature culture and environment provide by Chuy’s. John and Mark say, “If you’ve seen one Chuy’s, you’ve seen one Chuy’s.” The one common denominator found in each location is the Elvis Shrine. From the very beginning The King has played a part in this successful restaurants growth and development.
In recent years, it is not even necessary to turn on the news to hear about the bad reputation farming has been getting in recent years. What with the media focusing on things like drugs in animals and Pink Slime, or Lean Finely Textured Beef, it is a wonder that people are eating “non-organic” foods. However, many pro-farming organizations having been trying to fight back against these slanders. Still, the battle is not without heavy competition, and a good portion of it comes from Chipotle, a fast food Mexican restaurant that claims to only use completely organic ingredients in their food. Chipotle is constantly introducing advertisements claiming to have the natural ingredients while slandering the name of farmers everywhere. Perhaps the most well-known is “The Scarecrow,” a three minute ad that features some of the most haunting images Chipotle has ever featured. While “The Scarecrow” uses tear-inducing images and the almost eerie music to entice the audience to the company’s “free-range farming” ideals, it lacks substantial logos yet, it still
Chipotles has taken the market share during their launch of the new Vegan option. “Chipotle Mexican Grill introduced Sofritas, the first vegan meal offered by a national fast food chain that's not a salad or a veggie burger.” (Neporent, 2013). Taco Bell and Chipotle share the same market share, and there is a potential that
Steve Ells founded Chipotle in 1994. When the company first opened its first restaurant, their model of business was a first of its kind. They operated a restaurant business that lies between fast food restaurant and fine dining. The management of the company pride in providing the customers with food services in a fast manner without necessarily the customers experiencing the literal fast food services experience (Ragas & Roberts, 2015). According to the company, their services are high-quality fine dining but delivered in a fast manner synonymous with the common fast-food experience. That model of business practiced by Chipotle has come to be referred as casual restaurant business model.
Chipotle Mexican Grill idea of providing quality in a simple menu with high-quality ingredients, classic cooking techniques and a distinctive interior design has remained at the core of the commitment. Chipotle ability to serve a menu that focuses only on servicing burritos, burrito bowls, tacos and salads is a success. Customers can mix and match their options even though they are only limited to meats, beans, rice, salsa and topping. These ingredients are mostly organically grown from local farmers to provide top-quality nutrition and value. To keep up the quality of their food, Chipotle food preparation remains fundamental. It is mainly prepared from scratch and on site but some preparations are completed at nearby commissaries. This contributes to their fresh taste.
Chipotle competitive advantage or Strengths has come from the ingredients that come from sustainable sources. According to the MarketLine article about Chipotle Mexican Grill SWOT analysis "Chipotle serves food using naturally raised meat (pork, beef and chicken) and dairy cattle... in 2014 the company served over 155 million pounds of naturally raised meat." Chipotle cares for their customers because they are not giving us food that has hormones and addictive substances. Their competitive advantage has changed the company culture and mission Statement nowadays they called it now food with integrity, the idea that their food is made with the respect for the animals and the
As you know, Chipotle values our “food with integrity” promise and our customers respect that. However, the recent E Coli outbreak has caused Chipotle’s financial performance and reputation to suffer significantly and staying with our current business model is not our best option. Therefore, I recommend we rebrand and reposition Chipotle to ensure our long-term success.
1.1 Brief History Chipotle Mexican Grill was founded in Denver, Colorado in 1993. In 1998, McDonald’s became the majority shareholder; however, in 2006, McDonald’s divested its controlling interest. Chipotle became a public company listed on the New York Stock Exchange in 2006. It currently has 1,083 locations across the United States and Canada. In May 2010, Chipotle expanded into Europe, opening their first restaurant in the United Kingdom.
Chipotle is my favorite place to eat. As I am sure it is for other people. Chipotle is a fast food Mexican grill. They are most known for how big they make your burritos. Now it is fast food but it isn’t actually fast, they’re like a restaurant but without the wait. They serve all naturally raised meat and organic beans. So there food is pretty healthy and worth eating. The employees are always nice and it just a great place to eat over all. Chipotle is a great choice for a quick fast food stop because it gives great service, atmosphere, food and value. My experience there is always a good one.
In visiting Chipotle’s website, it is adherently clear that they are trying to do a few things to overcome their recent faux pas from the past. Putting a majority of their site’s focus on their sustainability story, how they are helping the environment,
Abstract This paper explores the business strategies Chipotle is using for operations. Analyzing financial and operations data to discuss areas of concern as well as areas where Chipotle Mexican Grill is doing well. Discussions will include the importance of Chipotle’s menu preparation strategy and menu integrity. The marketing strategies
When Chipotle first opened in 1993, the goal was to serve quality food fast, but not be considered “fast food.” To avoid falling under the fast food stigma, Chipotle strives to find the best ingredients with respect to animals, farmers, and the environment. In order to achieve these goals, Chipotle has created a matrix organizational structure that is divisional by location and functional by authority. Chipotle recently expanded internationally to the United Kingdom, Germany, and France, each following strict guidelines assigned by corporate employees from their headquarters in Denver, Colorado. Similarly, each location is functionally organized according to authority: regional manager, district manager, store manager, assistant manager, and
Pace is owned by Campbell Soup Company, and Old El Paso is owned by General Mills, both huge food manufacturers. In order to avoid brand parity with these big brands, Hector’s company and product need unique characteristics to give patrons a reason to buy Hector’s products. Both, Old El Paso and Pace, are not authentic companies because huge corporations run them (General Mills is located in Minneapolis, Minnesota; Campbell’s is located in Camden, New Jersey). Hector needs to capitalize on the fact that his salsa is not only superior but also authentic Mexican food. Such a product doesn’t seem to exist on the market yet. Thus, Hector could operate in a niche market of customers buying high quality, authentic salsa. Also, both major competitors do not focus on salsa. Hector has a salsa with unique texture and taste. A product with different features helps to avoid brand parity with
One of Chipotles major core competences is their ability to serve high quality food at a reasonable price. The company has a mission of “Food with Integrity.” Most of their vegetables and dairy products are organically and locally grown, which provides a lot of value to the customers nowadays (Subramanian, Ram). As for the meat products, “100% of CMG’s pork, 80% of its chicken and, 50% of its beef were classified as naturally raised beef” (Subramanian, Ram). Customers value these fresh and organic ingredients so much that they are willing to pay a little bit more over competitors like Taco Bell or Qdoba. The idea of going organic and natural has been the new trend with retail chains like Whole Foods and Trader Joe’s (Subramanian, Ram). These organic and natural products tend to be more expensive and customers realize this and are willing to pay for it. Chipotle recognized this trend of going organic and natural and took advantage immediately. With their emphasis on organic and natural products, I think there is the potential for new market entry into retail chains like Whole Foods or Trader Joe’s with products that are