Case Study : Chipotle Mexican Grill

2321 WordsJul 10, 201610 Pages
Chipotle Mexican Grill is one of the largest restaurant chains dealing with the fast-casual sector. The chain focuses on food prepared from sustainable farmers. Their philosophy is captured by the phrase "Food with Integrity". They engage in limited-service/self-service approach, average prices of meals, sophisticated flavors of made-to-order foods, and uniquely upscale décor. A Wall Street analyst in 2012 claimed that Chipotle could be another McDonalds (Thompson, 2012). The fast casual sector acts as an in-between of the standard restraint services; with the table-service restaurants like IHOP on the one extreme and fast food restaurants like McDonald’s on the other (Ragas & Roberts, 2009). Under the leadership of Steve Ells, the restaurant opened its first center in 1993 in Denver, Colorado. Profits from the first establishment were used to open the second one after two years and later a third was financed with a loan. In 1998, McDonalds invested in the restaurant after seeing some potential in the firm. In the wake of the third millennium, McDonald’s had already amassed the largest number of shares in the chain, a move that triggered rapid growth. The firm was later divested by McDonald’s in 2006 and became a publicly traded company on the New York Stock Exchange. Therefore, there are unique strategies that make Chipotle Mexican Grill lead the United States’ fast-casual dining category and have over 1500 stores. The Firm Environment The sector of first casual

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