1.Summary of the case
Introduction
Chipotle Mexican Grill is a restaurant chain founded by Steve Ells in 1993 with the revolutionary idea of “trying to change the way people think about and eat fast food”. Focusing on serving food sourced from sustainable farming practices (including meat product that is responsibly raised in humane ways without antibiotics or hormones) and cooked in a fast traditional way at reasonably priced dishes. “Food With Integrity” is the phrase that captures the firm’s philosophy.
As a result of Ells´s vision and strategy Chipotle had grown from one restaurant in Denver to 1,572 Chipotle restaurants serving around 800,000 costumers throughout the United States, and growing internationally as the additional restaurants in Canada(7), in England(6), in France(2), and in Germany(1) shows.
In 2013 Chipotle reported
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Market Environment
Chipotle is a restaurant chain part of is known as "fast-casual restaurants" what the company Technomic Information Services defined as meeting the following criteria:
1. Limited-service or self-service format
2. Average meal price between $8 and $15
3. Made-to-order food with more complex flavors than fast food restaurants
4. Upscale, unique or highly developed décor
5. Most often will not have a drive thru
Chipotle main competitors in the fast-casual restaurant sector include Qdoba Mexican Grill, Moe's Southwest Grill and Panchero's Mexican Grill. The company has identified different strategies to make the company stand out amongst the competition enabling the company to remain at the top and keep making profits. One of the strategies is new innovations examples of Chipotle´s innovation are: employing new menus that are tested in selected restaurants before the menu is adapted by all the restaurants or testing a children’s’ menu attracting more families and children to its
New restaurant openings and comparable restaurant sales increases are important factors contributing to Chipotle’s increase in revenues in recent years.
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. 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 have 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 names of farmers everywhere.
Taco Bells currently one of the top prominent Mexican fast food chains in the United States.
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.
C. Thesis Statement- The purpose of this presentation is to demonstrate why Chipotle is an undisputed leader in the growing fast food casual.
With a unique appeal, a healthy and delicious product, and a powerful social message that made our target customers feel great about eating Chipotle over more traditional fast food, we have pioneered the fast-casual restaurant model our customers admire. Furthermore, our food sourcing is a rewardable effort and it is what we and our customers respect.
Chipotle is classified in the restaurant industry as fast casual, a combination of the quick serve and the casual dining segments. Fast casual restaurants have the following attributes: high quality foods, upscale atmosphere, higher check averages between $7-$11, and pay at the counter (What exactly is fast casual?, 2008).
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.
As of 2016 there were 2,250 Chipotle restaurants worldwide. (Number of Chipotle Mexican Grill locations worldwide 2007-2016, 2017) Another interesting fact about Chipotle, is that in 1998 McDonald’s started investing in shares of Chipotle and by 2001 they had become the majority shareholder. In total McDonald’s invested over $360 million into Chipotle. (Myers, 2014) Although they have since split ways, the investment McDonald’s made into Chipotle helped to boost the growing power of the new to market concept burrito
cleanest meat that has been on the market, because the owners of the chains do not want their loyal customer to become sick, therefore soiling their nice reputation, such as what happened with Chipotle in the past year. The government follows less strict standards than many restaurants as the government stands on the side of the meat-packing industry, which is one of the biggest industries in the world. Their relationship is one of symbiosis: a mutually beneficial relationship between different people or groups.
Chipotle Mexican Grill founder Steve Ells had a vision to “change the way people think about and eat fast food” (Gamble, Peteraf, & Thompson, Jr., 2015). He wanted to create a
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
The fast-food industry is changing everyday. There are new products being introduced in the market and new slogans being created. The companies in the fast-food industry will do their best to make the greater burger, and to make bigger and better fries.
This study will identify what form of advertising works best for the brand to reach their target audience and get them to make a purchase. By identifying what works best and what millennials respond to, specialists will be able deliver the group’s needs and communicate with them more efficiently creating repeat buyers and brand loyalty.
By choosing to expand into markets later than other fast food restaurants Burger King hopes to avoid the problems of developing infrastructure and establishing a market base. For instance, by following McDonalds into Brazil, Burger King avoided the need to develop the infrastructure and mark...