Chipotle Mexican Grill, Inc. is a “fast-food service restaurant” under limited service category. It was formed in 1993 and went public in 2006. It has the largest market share in the Mexican-type food segment with a net income of more than
In recent advertisements, Chipotle emulates the Ronald McDonald Campaign, by the appearance of the characters and scenery as something from a children’s book. This sentimental appeal seeks to connect the audience to their childhood, recalling a time in which all was right with the world. Specifically in Chipotle’s “Scarecrow” advertisement, Chipotle associates a children’s character with their product.
The fast food, or quick service restaurant industry (QSR), represents approximately 200,000 restaurants and $155 billion in sales in the U.S. alone, they are one of the largest segments of the food industry (Hoovers, 2011). This segment of the restaurant industry is “highly competitive and fragmented… number, size and strength of competitors vary by region, market and even restaurant. All of these restaurants compete based on a number of factors, including taste, quality, speed of service, price and value, name recognition, restaurant location, customer service and the ambience and condition of each restaurant” (Chipotle, 2010).
Where and when did you observe the behaviors? Who made the observations? On 1/28/16, En-Lei observed inside of Chipotle. On 1/29/16 and 1/30/16, Matt observed across the street from Chipotle. On 2/1/16, Dana observed from a window across from Chipotle in the lobby of the Huntington Hall. On 2/2/16, John observed across the street from Chipotle. What behavior categories did you observe? How did you define each behavior category? We observed the outwardly happiness or unhappiness of individuals leaving Chipotle during lunch hours. We defined outwardly happiness as the smiling of each individual leaving Chipotle and unhappiness as the lack of a smile. When and how did you make observations? We used the frequency method of observation during lunchtime
Chipotle ventured into a new territory when it was created, as it had an innovative vision for fast-casual restaurants. By using fresh and quality ingredients, Chipotle raised the bar in their segment. The service line where customers could see their order being prepared enhanced the experience of Chipotle. Consumers who were used to eating at fast-casual restaurants where the food was frozen and made out of sight were able to savor the uniqueness of Chipotle. These differences helped Chipotle become successful. However, as competitors copy the traits that make Chipotle unique, Chipotle must adapt and overcome in order to remain a profitable company.
The company had run a national TV commercial which named “Back to the Start” during the Grammy Awards. Chipotle also had published their food, restaurant concept and business through favorable articles and television programs. Moreover, Chipotle used video and music programs as well as event strategy to attract the consumers’ attention to their restaurants. The company also initiated promotional activities via newly opened restaurants to attract more consumers. Chipotle introduced a reward program, the “Farm Team” to encourage more customers to join a program that educated them something related to Chipotle Mexican Grill business concept. In addition, the word-of-mouth publicity from customers enable Chipotle to reduce the cost of advertising but at the same time increasing the brand reputation of the restaurants in the
It turns out even Chipotle isn’t perfect. Seventeen Chipotle locations in Minnesota have been linked to a recent salmonella outbreak and are currently under investigation by the state’s health officials.
Have you ever tried the best tasting fast food Mexican restaurant on the market? It is called Chipotle. Chipotles restaurant has great service and many excellent choices.
CMG should consider an advertising campaign in order to increase awareness about the Mexican food industry and about the CMG chain. There is a relatively small market for authentic Mexican food in the United States and CMG can increase this market by having a good marketing campaign. CMG also competes with other food chains which offer healthier ingredients in their menus such as Qdoba, Panera Bread and Moe’s Southwest Grill. So in order to increase visibility over their competitors an ad campaign is advisable.
Chipotle was founded by Steve Ells in July of 1993 and in 1998 Mcdonalds was a major investor but, in 2006 they withdrew from Chipotle. Chipotle is one of the most famous fast food restaurants is the Unites States. In 2016 there was 2,250 restaurants in the U.S. alone. It is a nice, fast, and easy way to get dinner or lunch for you and your family. That’s why Chipotle is one of my favorite places to eat.
“Food with Integrity” is the slogan of this restaurant chain; which is a rather new food stop of the time. Chipotle is a higher-end, fast food restaurant found in higher class neighborhoods. It is personally my favorite fast food restaurant and I would highly recommend it to anyone who would like to sink their teeth into some fresh, juicy, Mexican food.
As the text suggest a small group consists of 5 to 7 individuals, therefore the Chipotle group size fits into the small group category as there were 7 team members working. There are many different tasks that each individual completes to contribute to the overall customer service: Front line greeter takes your initial order finding out if you want a bowl, burrito, taco, or salad. It’s usually very crowded so the interaction is very quick and to the point. Next, there is an individual waiting to be informed of the toppings desired. Once those two individuals complete the task, the item is then marked for the cashier to correctly charge the customer (the marking allow the assembly line to move smoothly without much verbal communication). In the
Chipotle’s quick ratio is 3.28, slightly lower than its current ratio. Yum! Foods quick ratio is .62, which is also slightly lower than their current ratio. Both ratios are acceptable as long as A/R is not expected to slow. Chipotle appears to be a significantly stronger company than Yum! Foods. The industry average is not given.
Steve Ells is the founder and CEO of Chipotle. Steve is a trained chef and opened his first Chipotle store in 1993 at a former Dolly Madison ice cream store in Denver, Colorado. His goal was to serve high quality, delicious food quickly and in a “fast-casual” setting (Ells).
2. What does a SWOT analysis reveal about the attractiveness of Chipotle Mexican Grill’s situation and future prospects?