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Chipotle research paper 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’s Chief Executive Officer, Steve Ells has been reputed for having started the restaurant chain in a unique way which has contributed to its apparent success over its main competitors. Chipotle business has grown exponentially from when it was first formed with most of this growth attributed to the founder’s control process in the business. When Steve Ells first got into the industry, he acknowledged the need for promoting innovation and …show more content…
entrepreneurship amongst his employees (Simpson, 2015). Therefore, he put in place all the necessary support mechanisms that would ensure that a spirit of entrepreneurship and innovation would be cultivated within the company’s staff. The business adopted a program referred to as Restaurateur Program. The program is modeled such that the employees with the best performance are motivated to continue nurturing their career management skills. Those employees are given opportunities to become leaders at their respective workstations. The management at Chipotle identifies the best performing employees and those employees rewarded based on their skills. Unlike many other businesses where contingency payments are based on the number of sales made, at Chipotle, this is based on the management skills as well as the mentorship that employee has provided to their colleagues. That results in a systematic staff development where the highly skilled managers get to motivate their junior colleagues. Eventually, the company will have employees with stellar management and leadership qualities. One of the organizational cultures of Chipotle that sustains the Restaurateur Program is its promotion policies. Beginning 2005, the company promotes most of its managers from within the employees already working there. That is a unique culture which has steadily progressed from the time it was initialized until now when between 80% and 90% of the managers are promoted from within the company’s current staff. That enables the creation of a feedback loop where most employees are not motivated to further their professional development due to the company’s policy of promoting managers from within their ranks. The high performance amongst the employees of the company consequently leads to huge sales which make the company perform better than its competitors. Reference Greathouse, K.
A. Chipotle Strategic Overview. Grill–Expansion, C. M. Chipotle Mexican Grill–Expansion and Growth Strategies. Mire, L. (2011). Chipotle Mexican Grill: a strategy capstone (Doctoral dissertation). Ragas, M. W., & Roberts, M. S. (2009). Communicating corporate social responsibility and brand sincerity: A case study of Chipotle Mexican Grill's ‘Food with Integrity’program. International Journal of Strategic Communication, 3(4), 264-280. Simpson, S. (2015). Chipotle Mexican Grill Inc.: Strategy with a Higher Mission or Farmed and Dangerous?. Journal of Case Studies, 33(2), 38-59. Thompson, A., Peteraf, M., Gamble, J., Strickland III, A. J., & Jain, A. K. (2008). Crafting & Executing Strategy 19/e: The Quest for Competitive Advantage: Concepts and Cases. McGraw-Hill
Education.
External environment analysis plays an important role in shaping the overall industry. It helps keep the business ahead of its competitors and providing opportunities for implementing innovative ideas. Based on demographic, Chipotle focuses majority of its sales on “Millennials”, who are between the ages 18 and 24. “Serving high quality food with reasonable prices” and the ability to customize your meal with a variety of different options in a fast paced environment is something many consumers are attracted to especially the younger generation. Chipotle’s first restaurant was established in Colorado but now they have restaurants all throughout the United States, Canada, United Kingdom, and so much more, located primarily in urban areas.
Chipotle Mexican Grill (CMG) has been a standout performer in the restaurant industry for several years now. However, its shares fell by nearly 6% in a single session after investors weren’t too pleased with its recent earnings report. Altogether, the stock has corrected nearly 20% since its March high of $622.90. Can the stock bounce back from here? Or will it continue its slide? Let’s take a look at the pros and cons.
(2011, March 15). The. Retrieved March 19, 2011, from Fast Casual: http://www.fastcasual.com/article/179973/fast-casual-segment-outperforms-industry?rc_id=312. Form 10-K Chipotle Mexican Grill, Inc. (2011, February 17). Retrieved March 15, 2011, from U.S. Securities and Exchange Commission: http://www.sec.gov/archives/edgar/data/1058090/000119312511039010/d10k.htm#tx129308_27.
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.
Chipotle Mexican Grill is one of the most popular Mexican restaurants in the United States, which offers burritos, bowls, tacos, and salads. It is one of my favorite restaurants to visit.
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.
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.
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
Despite the economically uncertainty Pret A Manger keeps on thriving in the U.S. fast food market. It’s growing fast, with huge success. Pret is proving to the world its a big threat in the sandwich industry. In 2011, U.S. sales up 40% from the year before, “the company’s overall profits grew by 37% in 2010, and annual workforce turnover is only 60%, compared to fast food industry averages of 300-400%.” (Smart Advantage)
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,
Chipotle is using to increase operations and strategies used to compete against rivals in the competitive environment. Concluding with an overall evaluation of Chipotle’s business portfolio. Corporate Strategy 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
The Santa Fe Grill is a relatively new Mexican restaurant that was started by two former business students from the University of Nebraska, Lincoln. The idea sparked after the two roommates who were both interested in pursuing entrepreneurial interests decided that a Mexican restaurant in their city would be highly successful. While taking an entrepreneur class at the University, the plan for the business began coming together. Their main focus was to create a restaurant that would feature the freshest ingredients, as well as a lively atmosphere, cutting edge advertising and marketing, plus exceptional service for customers. (Research Methods, Pg. 19) By doing so, the students hoped that they could fulfill their dreams of ownership.
Innovation is an important aspect of business today. It is important for companies to be innovative in order to stay competitive with their competitors. Innovation can come in different forms depends on the company’s objective. KFC, one of the most popular fast-food restaurants by the Yum! Brands, chooses to be innovative for their business model. Although, there is a huge amount of fast food chain available in the global market, KFC found the key to stand out from the intense competitive environment. By expanding the business to China, KFC learned unprecedented success by being different, not by being the same. The company’s business model is all about adapting to the local culture and understanding the needs of the Chinese market. Three main innovative strategies of KFC in China are localizing the menu, understanding the Chinese culture, and hiring local management.
Burger King’s core competency is fast food restaurant franchises specializing in made to order, flame-broiled hamburger sandwiches, particularly the “Whopper”. Using the strategy of industrial organization to capture market share Burger King offers a similar product (hamburgers) in a different way (flame-broiled). This strategy of product differentiation is part of the firm conduct category that Burger King uses to set itself apart from its competitors. In order to compete with its fast food competitors Burger King accentuates its core competencies in its marketing and product strategies, thereby leveraging market share.