Chipotle has chosen to focus on the millennials or also known as Generation Y, for its target market. Millennials can be summarized as people who were born between 1980s and early 2000s. Millennials grew up in a world where electronics, social media, and internet became ubiquitous. However, Chipotle has clarified their target market and segmented their target customer. Two of Chipotle's most well-known products are fresh ingredient and 65,000 ways of different combination of food. Chipotle Mexican Grill targeted Millennials (Age between 18 to 34) with at least a Bachelor's degree to purchase this food. This people are the member of the upper middle class in the "mass affluent". According to the study, This group of people have an average income of $75,000-$149,000 annually, which means this young people have considerable purchasing power. According to the U.S Census information available in April 2007, 13.3 million households consist of the mass affluent market. …show more content…
The company’s product is primarily comprised of burritos, bowls, tacos and salads. Customers can freely choose what they can put in their food, allowing for customization, which is one of the key factors that Generation Y prefer. As millennials place a great emphasis on eating healthy, Chipotle has strived to meet their customer’s expectations. By 2001, the company served 100% naturally raised chicken and pork. In 2013, Chipotle became the first restaurant chain to voluntarily discontinue the use of genetically modified organisms (GMO). Additionally, by 2015, the company met its goal of no longer serving foods from GMOs. They also use fresh ingredients that come from local farmers and other suppliers that focus on
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.
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.
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
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.
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).... ...
The technological advances are increasing each year, and electronics are not the only things upgraded. The food eaten in the United States has also been touched by science in the form of GMOs. Although GMOs have been in the US food industry for almost twenty years, consumers should have the right to know what is in our food with mandatory GMO labeling.
Our attitudes toward GMO foods range from hostility to indifference. GMO foods, like pesticide-resistant Roundup Ready soybeans and fast-growing salmon, seem to exist primarily to pad corporate pockets. Most people are not aware that they are eating GMO foods. The greater percentage of the population is just looking at the price tag instead of what is in the food product. This technology has the potential to provide sustainable nutrient rich food sources throughout the ages if the science is not abused for the food industry’s
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.
Next, companies that refuse the use of genetic modifications on their foods must begin to label foods that do not contain GMOs so that consumers can be sure of their safety, even if others that contain GMOs do not label. Due to this labeling, there will be an exposure to which foods are natural because the foods that are the most appealing will have “the ‘Non-GMO Project Verified’ seal [in order] to help shoppers recognize which products meet rigorous GMO avoidance practices” (“Whole Foods Market”).
Similar to a fast food restaurant, but more upscale with a better dining experience. Ells idea of keeping the menu simple with limited items to prepare delicious food efficiently helped to create a kitchen different from other fast food chains. Food preparation areas in Chipotle’s kitchens are similar to those of fine dining restaurants. Menu items are prepared from scratch and with fresh ingredients. Even the meats are prepped with marinades.
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
First, how do we know who fits into this group? Merriam-Webster dictionary defines “sandwich generation’ as being “a generation of people who are caring for their
As Generation Y, we are 63 million members strong and spend more than a billion dollars annually (Marketsource). With such spending power it is easy to see why companies choose us as their target market. We have grown up in a "'consumption culture" are "taught that (we) will be satisfied if we purchase products to fill our wants and desires" (Youth in the Third Millennium). Perhaps this need to buy things is only a progression ...