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On integrity
The importance of integrity
The growth of fast food in USA
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While the economy withers, there is a new fast food company that grew a little over 20% in the last year. The Chipotle Mexican Grill is a growing fast food chain. Chipotle offers a new fast food experience. Tasty. Hip. Fresh. This is a place with a promise of “food with integrity”. As I walked into Chipotle the venue looked modern and new. There were tables around the room and bar tables with round stools located along the back wall. Chipotle is very compact and not a good place for big groups. Every time I walk into Chipotle there is traffic inside as the line snakes around the restaurant The menu is concise and easy to understand: burrito bowl, burrito, soft or crispy tacos, chips and guacamole, salad, and choice of beans, and meats,
Their ability to encourage healthy eating, decrease service wait time and increase customer appreciation is the reason their sales has increase year after year. Once a small one-unit operation in Denver has now grown to a billion-dollar corporation. Chipotle food maximizes on quality and customers understand that quality comes with a price. For such a very limited menu, Chipotle cost more than most of their competitors operating in the same sector but it’s not unreasonable.
Because Chipotle has to pay higher prices for their company’s items such as the avocados and package than its competitors. According to the MarketLine articles about Chipotle Mexican Grill, Inc., "For instance, an average meal at Chipotle is the range of about $8, Whereas its competitors such as McDonalds, Taco Bell and KFC has options such as Value menus that start from even $1." Chipotle food is expensive because they have the best quality ingredients that are not common such as the avocados for their competitors. But Chipotle 's competitors are getting more sales revenues of their menu items because with one dollar to can buy a meal for a
Such factors may include threat of new entrants, power of suppliers, power of buyers, product substitution, and the intensity of rivalry among competitors (Hitt, Ireland, & Hoskisson, 2013). Since Chipotle was opened in 1990, they have already become a well-established company within the industry. In order for Chipotle to continue having a competitive edge in the market, they must heavily compete with companies or restaurants such as Qdoba that offer a wider variety of menu options for lower prices. Chipotle directly works with suppliers, usually in local areas, to permit more competitive prices to buy their products. Since Chipotle focuses so greatly on product quality, the supplier’s power plays an enormous role in Chipotle’s ability to obtain their raw
Chipotle has grown to become a leader in the fast food arena. According to Our Company,
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 Mexican grill has transformed the way people think about fast-food through delivering exceptional Mexican dining experiences to its guests and providing a simple menu of organic ingredients, quick service and at a low cost. More than just a great experience, they have created a lifestyle where people have the pleasure of eating good and healthy.
Chipotle restuarants have had norovirus and E. coli outbreaks. They have been given a subpoena and the FDA is investigating the situation. Chipotle seems to be handling the ordeal well. The article thinks that at this point in time the public cares most about how Chipotle (and other restaurants in that predicament) handle the whole ordeal.
Overall, Chipotle has a good idea of their customer segmentation and how to position their brand. Even with their issues recently, Chipotle has continued to gain back their loyal customer base and keep their products relevant in the millennial sphere.
In 1993, the first Chipotle Mexican Grill restaurant (pronounced chi-POAT-lay) in Denver, Colorado was opened by CEO and founder, Steve Ellis after he received $165,000 in investments from a bank loan and his father (Pederson). Ellis, a Culinary Institute of America grad and former chef, started the company’s first restaurant to raise money needed to one day operate his own full-service restaurant (Berta). The company’s menu includes burritos, tacos, salads and burrito bowls (burritos without the tortilla) made with customers’ choices of pork, shredded beef, chicken, steak, beans, veggies, and burrito condiments (sour cream, salsa, etc.) (annual report). When Chipotle was first established, Ellis did not like the restaurant’s closed kitchen format because customers would often have to yell out their food orders to employees who cooked in the back of the building. This format did not accommodate customers’ needs for direct contact with employees and have full control over their own choice of ingredients within their meals as cooking staff could make a mistake on their orders because of mishearing. This compelled the founder to change the restaurant’s current format to an open kitchen design in which customers could actually see and choose ingredients that are fully prepared for ordering on a buffet assembly line while being able to directly speak face to face with employees (Pederson). A couple of years later, Chipotle opened a few more restaurants in the Denver area each generating $1 million in sales through word of mouth marketing and employing about 17 workers in each facility (Pederson). In 1998, McDonalds Corporation bought a minority stake in Chipotle as a way to boost their company sales since sales at their own rest...
My expectation before I’ve ever walked into a chipotle was that it was just some other Mexican grill restaurant and it wasn’t worth my time. When I actually went there and felt the vibe and tasted their food I was blown away. It was the best thing I’ve ever gotten. Trying the barbacoa is the best thing I’ve done so far in my life. Chipotle is a great experience because you don’t feel like you’re just going to another same fast food place. You can actually sit down and take some time out of your day to just relax and take a breather while eating some delicious food. Every time I go to chipotle, I experience nothing but good things.
Chipotle is continuing to stay ahead of the curve and putting their focus now on the sustainability and farm to table concepts that are continuing to gain in popularity.
... you want to make new friends you are not far away to a person. In conclusion, Chipotle is my favorite place around the campus. It is not far away from where I live, it’s fast, tasty and healthier than other options around. It is always packed with variety of people with similar and different interest. You all have one common and it’s getting nice food so you can take advantage of that to make new friends while you are on the longest line of your life. Most of the people there are happy and enthusiastic, they are not like the people that work in McDonald’s and hate their lives. The ambiance is very unique to its own but same in every Chipotle. Their music can definitely make your day and attribute your Chipotle experience. The color coordination and the artwork is fantastic. The Aztec artwork that made out of recycled materials adds up some crisp to your experience.
This setup provides the capability to serve over 200 people per hour. Employees are cross-trained to be able to perform more than one job duty which helps both the restaurant and the customer experience during peak times (Gamble, Peteraf, & Thompson, Jr., 2015). Chipotle is not just focused on creating a great experience for their customers, they also strive for a positive work environment. Providing fast-tracked advancement opportunities for those who prove their commitment to the organization and want a long-term career at Chipotle Mexican Grill. Financial and Operating
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
Just like online shopping has started to take huge chunks into the actual physical-retail stores and going to the malls is starting to decline, the same has begun to happen to these casual dining chains. Of course these issues could be hand in hand. The fewer customers that go out to the mall or to Walmart means fewer potential customers for the restaurant. Although, places like Chipotle and Panera have seen sale growth of 15 to 20 percent over the last 5 years, while the casual diners have flat-lined or even decreased. Known as fast-dining, these places are popular for their speed that...