Chipotle Consumer Behavior

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.

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

This article focuses on the increased importance for marketers to place a reasonable focus on the growing Hispanic demographic and their substantial purchasing power. With an estimated eleven percent of the US population by 2017, Hispanic consumers will comprise a large submarket. This Hispanic submarket will be able to add to the bottom line of companies that are able to target this market with the right marketing mix. Targeting the $1.2 trillion submarket is becoming a necessity for brands that are looking to grow their market share. Hispanic consumers are increasingly making their way into mainstream America and creating their own American Dreams. As they move up the socioeconomic scales they begin to buy bigger

Obesity has grown into a rampant issue all over the United States, over the past few decades. Fast foods also have increased their outlets in the nation, in turn, depicting a success in the business venture. It is clear that fast foods have become quite cheap in comparison to healthy, homemade meals. Subsequently, people have turned to eat fast foods for economic reasons. Convenience is yet another reason behind people’s high indulgence in eating fast foods other than healthy, homemade meals. One does not need to prepare meals when dealing with fast foods; it is just a matter of walking into a fast food restaurant. However, the rampant feeding on fast foods in America has adverse effects that seem to affect even

When Chipotle is looking for a new venture in a new country like in Japan, the productivities in that country will be the driving factor which will make it lay a strong foundation for the business. Developed broadcasting domestic market may give the new industry easy time to carry on with the business in the country. Nevertheless, development ability for program formats like in this case of Chipotle must be in the forefront in order to enjoy the profits in this region where the restaurants are going to be relocated in Japan (Sholes

Chipotle’s main focus in marketing is in the United States but follows the same model in the international market. It has never been Chipotles intention to “put its stamp on a bunch of restaurants around the world”, but their vision as a company is to change the way people think about and eat fast food, which they feel the “other guys” are not focusing on, (Van Tan, n.d.). With this mindset, Chipotle believes there’s certainly room for them to build that position in other countries as it has been successful in the U.S., (Van Tan, n.d.). In the London market Chipotle followed the same model as in the United States about the brand and its grassroots marketing efforts to the streamlined menu to the assembly line operations, (Van Tan, n.d.). Chipotle executives’ views are that it doesn’t need to be any different going into Europe as it will all be the same. Chipotle is about simplicity, after all, (Van Tan, n.d.). From the start the London store focused on building management potential in its own employees. Management and personnel from the company travelled to London to open and train new Chipotle team members how to do things the Chipotle way, (Van Tan, n.d.). Chipotle strives to promote from within and with 80% of management staff coming from internal sources this is obvious, (Van Tan, n.d.). Developing their own people and moving them to manage other

Changes in customer preferences, general economic conditions, discretionary spending priorities, demographic trends, traffic patterns and the type, number and location of competing restaurants have a moderate effect on the restaurant industry (Chipotle, 2010). One example of customer preferences being a driver in the industry is the “Whole Food-ism Movement” which has put a large focus on organic, antibiotic-free, and non-processed foods (Mansolillo, 2007). Consumers now look for healthier options when eating and an overall healthier lifestyle. Chipotle has been able to benefit from this movement by carrying on their “Food with Integrity” mission (Chipotle, 2010).

The fast food industry has been growing dramatically during the last few years. For this reason, we should try to find out what are the several factors why fast food consumption keeps growing among young people and adults. Therefore, as we have seen, the popularity of fast food is spreading rapidly among many people due to the following three main reasons: good taste, convenient time, and price. Personally, working for a fast food restaurant for a brief moment in my life, I can attest to this. Marketing also plays a big part to more people eating fast food. It’s in our culture in America to expect fast food companies to market and strategize their ways to make us, the consumers, to buy more food and consume more food so they can make more profit. Especially now with commercials and social media. The fast food industry has thrived in the modern era. It’s thriving so much, the industry is growing faster than the U.S economy, at

It is also more widely spread geographically. Subway also offers the “choose your own” style of service, but it does not serve organic foods ("Chipotle Mexican Grill, Inc. SWOT Analysis."). Hot Head Burrito is another Mexican style restaurant that would be considered a competitor. These restaurants offer cheaper menu prices, lower-carb options and “diet menus” ("Chipotle Mexican Grill, Inc. SWOT Analysis."). While Chipotle offers none of these things, they have quite a large target market and have grown tremendously just in the last five years ("Chipotle Mexican Grill, Inc. SWOT Analysis.").

Thus, Chipotle must find a way to differentiate itself from other western restaurant chains, while integrating itself into the Chinese culture. It can use its capital and reputation for using local and sustainable ingredients to build a strong brand—a core competency that will give it a competitive advantage in the Chinese market. In a large, international city like Shanghai, local street food is cheap, but people will still want to dine at higher-end western restaurants because of that entails a higher status (Maxfield,

2. What does a SWOT analysis reveal about the attractiveness of Chipotle Mexican Grill’s situation and future prospects?

Over the last decade, Chipotle is one of the fastest-growing restaurant chains. The company’s commitment to serve fresh food using only natural and organic ingredients, supports local family farms and sources sustainable ingredients from local growers. Chipotle competes against the big fast-food chains, such as McDonald’s and Denny’s. Chipotle found its “Enthusiast” customers by focusing on social media to tell its story. Today, it has over 1.7 million social media fans, yet spends next to nothing on traditional paid media. Because Chipotle is a fast food and less expensive, it also appeals to the “Savvy Shopper” who wants to enjoy fresh food at a bargain price.

In the last decade, a lot of emphasis has been put on adopting healthy eating habits and informing the consumers that the healthy-eating option was available in fast-food restaurant chains. Interestingly, consumers eating in fast-food chains were found to be more likely to order fattening side dishes if they think that they are consuming a healthy diet (Men’s Fitness, March 2008). This observation is also true in Subway restaurants where a 12 inch Italian sandwich contains over 900 calories compared to the 600 calories BigMac from MacDonald’s (Wilson Quarterly, Winter 2008). Thinking they are eating “healthy”, Subway patrons then splurge on soft drinks, potato chips and desserts accompanying their sandwich, especially is they are offered as part of value meals.

Mission – By delivering uniquely flavored Mexican style food at budget prices, Taco Bell seeks to establish an international presence over the next 5 years. The current international fast food markets in Asia, South America, and Africa are dominated by American style fast food which leaves considerable opportunity for competing styles of cuisine, Taco Bell will use an aggressive marketing plan and develop a supply chain network that will enable rapid growth in overseas markets. Newly established restaurants will be able to supply local communities with quality meals at competitive prices while simultaneously creating value for shareholders.

Since fast food first emerged in the United States it has become a large and successful industry, netting billions of dollars every year. This rapid expansion of fast food has put a fast food establishment within reach of almost every American. In Adam Chandler’s “What if Consumers Just Want to Buy Junk Food” he claims that although a majority of Americans believe they eat healthier today than in the 1970’s, but in fact studies show the very opposite. Chandler associates this to the consumers preference of unhealthy foods, but there is strong evidence that this rise in unhealthy consumption in American society can be attributed to the marketing and business tactics of fast food corporations, the availability and ease of access to fast food, and their socioeconomic status.