Chipotle

4454 Words Jul 13th, 2014 18 Pages
Jessica Hansen, Leslie Hansen, Nuradin Ahmed, Shane Ottmar
Case Study

MGT 499
07/27/2014

MGT 499
Jessica Hansen, Leslie Hansen, Nuradin Ahmed, Shane Ottmar
Case Study

MGT 499
07/27/2014

MGT 499

Table of Contents
Situational Analysis Page 2 History Fast Casual Food Industry
Strategy Page 3
Chipotle Value Chain
Competitive
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Chipotle consumers tend to be in urban locations and do not offer drive thru service like their fast food competitors. Chipotle’s fast casual menu does not offer breakfast and typically operates in the window of 11 AM to 10 PM focusing on lunch and dinner guests, unlike its competitor Panera. Quick service foot traffic has remained flat since 2009 and fast casual segment has grown 4 to 8 percent. Beyond the US market, the Mexican fast casual industry in relatively immature and is an opportunity for great growth potential.
Strategy
Chipotles “Food with Integrity” mission is a differentiation strategy that includes using of more expensive organic, fresher, and higher quality food. These ingredients differentiate their products from their competitors and meet the demand of millennial consumer’s quest for healthier food. Chipotle requires close relationships with its suppliers. Chipotle has not acquired any of their suppliers, this backward integration helps mitigate the disruptions in product supply of these fresh ingredients. Chipotle focuses on efficient production to offset the increased costs of supply.
Chipotle is a business focused on market penetration and has low diversification. Even though Chipotle is expanding into Asian fare with

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