Chipotle Mexican Grill requires a beginning to bring back consumers to begin buying meals again. Chipotle underwent a decline in revenue due to a recent outbreak of E. coli in at numerous sites. The E. coli outbreak caused restaurants to discontinue operations thus forcing loyal consumers to eat at other establishments (Choi, 2015).
Due to a recent outbreak of E. coli throughout Chipotle’s Mexican Grill stores, sales are plummeting as much as 25 percent (Choi, 2015). Illness expanded over nine states with 52 reported illness and decreased sales Chipotle a resolution to rebrand their image to attract customers and boost sales in 2016.
The aim is for Chipotle Mexican Grill to become more profitable in 2016, two factors must be considered,
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By increasing customer retention and satisfaction Chipotle will bring existing customers back and should drive new customers to try the brand. Upon the return of consumers, the brand will grow in profitability again. Chipotle Mexican Grill’s target customer is primarily millennials; more particularly millennials between the ages of 20-24 that are on the go, who are looking for fresher healthier quick order meals. (Schoultz).
The message that Chipotle would like to send their audience is that the brand is still committed to fresh produce that is natural, organic and locally grown. Since this is the message that Chipotle sends to the brand’s consumers already, the brand would also like to focus on new higher standards that build Chipotle’s promise of integrity to its customers.
(Millenial Target: Chipotle has fresh appeal, 2016).
Currently, due to the E. coli outbreak consumers are doubtful and uncertain about returning to Chipotle in fear they may become sick due to E. coli. E. coli is caused by food mishandling or poor food products; consumers are beginning to feel as if the brand’s “fresh and healthier” image is not what meets the
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20-24 years want a food experience that they feel is not just convenient but also safe to eat and healthy for their body.
The best way to persuade the consumer to purchase Chipotle products is for the company to advertise to their target audience their commitment to the integrity of the food they are preparing. One way to do so is to advertise in stores their food and safety inspections. Another way to do so is to advertise their commitment to clean stores and fresh produce.
Chipotle would like to remain in line with their current marketing plan with clean and little flash advertising. Slogans like “Farmed Friendly” and Chipotle’s logo stamped on the right-hand corner is their main marketing ploy. This would be the best approach to stay consistent with Chipotle’s image to remain in touch with their millennial target audience. The message should convey “Clean Food + Clean Stores = Safe Eating,” to show the consumers the food they are eating is good for them, plus the stores are taking precaution to provide safe food prep which will give me a safe eating experience.
A solid message must be offered at the onset of 2016 allowing for consumers to have confidence that the commitment to safe eating is the reality for
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.
Most of them reported eating food from Chipotle within the week before their symptoms began. Twenty of those individuals have been hospitalized.
Chipotle uses pathos, ethos, and logos in their advertisement to attract electronic consumers to download their app “The Scarecrow.”
Simpson, S. (2015). Chipotle Mexican Grill Inc.: Strategy with a Higher Mission or Farmed and
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.
1.3 Market Segment 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 food, upscale atmosphere, higher check averages between $7-$11, and pay at the counter (What exactly is fast casual?, 2008). 2.0 Market Opportunity Analysis 2.1 Market Trends The restaurant industry grew to $403.5 billion in 2010, a growth of 2.1% from 2009 (Consumers still thrift when dining out, 2011).... ...
Chipotle uses environmentally friendly packaging, with bowls made from recycled newsprint, unbleached tray liners, and napkins and cups made from post consumer waste. The issue of environmental protection gets more and more social noticed. What Chipotle do has left a positive impression to common.
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.
Operations: Chipotle has set standards from when the food is bought, to when it's produced and to when it's sold. This quality control is performed by their Quality Assurance group, which foresees all of these positions.
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.
o Having friendly people take care of customers. o All while increasing awareness and respect for the environment, by using organically grown fresh produce, and meats raised in a humane manner without hormones and antibiotics. Maintaining a limited menu allows Chipotle to focus on the quality of the products offered and create personalized dishes for their customers. The serving area is set up much like a buffet line, allowing customers to choose what items they want to include in their meals and are served instantly after completing their order.
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
As might be expected, the millennial generations as a whole are passionate about the technological and communication advances in the past decade with the internet and social media. “A new Pew Internet Project report reveals that 93% of young adult’s ages 18‐29 are online” (Andrew January 14 to 27, 2010). This allows access for marketer’s access to the generation in a different way than previous generations.
Focusing on the well being of the customers should be the main focus of any major company, especially fast food companies. By reducing the amount of unhealthy choices for children and replacing them with nutritional foods, the nation’s youth will benefit.