Chipotle

Chipotle’s operating income increased from $108.2 million in 2007 to $532.7 million in 2013. This produces a CAGR of 30.43%. Rising market prices for natural meats and organically grown ingredients led to Chipotle’s rising costs for food and beverage from 31.9% of revenues in 2007 to 33.4% in 2013 and a CAGR of “only” 30.43%. Besides the operating income, the operating profit margin increased almost every year (10% in 2007, 13.4% in 2009, 15.7% in 2010 and 15.4% in 2011). In 2013 Chipotle had a profit margin of 16.6%, while in 2012 the profit margin was 16.7%. This effect should not be exaggerated, as the total revenue and operating income in 2013 was still higher than the total revenue and operating income in 2012. In addition, the net income almost quintupled from $70.6 million in 2007 to $327.4 million in 2013, generating a CAGR of

One thing that is obvious is Chick-fil-a wants to help young people have a future. They do so through education, entrepreneurship, and leadership. The restaurant supports organizations who help children learn by encouraging children and giving them the tools to become successful in their schooling. One of the things the company is trying to do is help young people become entrepreneurs which will help newer generation give back to their communities. As well as entrepreneurs giving back so will those who learn how to become effective leaders. The websites were filled with ways how they help the community, but I did not find the same on the Chipotle website. Chipotle talks about fundraisers, but does not say anything about trying to help the community, nor does it talk about scholarships. Chick-fil-a is an active part of the community.

Top executives of Chipotle conscious about the quality of food in its restaurants. Thus, Chipotle did not buy food ingredients directly from farmers and restaurant supplies from manufacturers. Chipotle acquired long-term relationship with food industry suppliers of good reputation that able to meet their quality specification. The company makes purchases from a list of granted suppliers that provide key ingredients. Some ingredients such as beans are organically grown produce. Chipotle uses high quality, nutritious and fresh raw ingredients for their food preparation.

Chipotle Mexican Grill is a fast casual Mexican Restaurant that operates from the United States. Although the restaurant is specifically segmented to the fast casual Mexican restaurant market, it does not simply operate in this realm. Chipotle is also successful operating in the restaurant market as well. According to the Trefis Team (2014) Chipotle Mexican Grill has managed to take market share from restaurants in the fast food industry.

The actions taken by Chipotle after the E.coli outbreak can be seen as both exacerbating the problem and finding ways to resolve the problem. However, as the crisis began, leadership coming from CEO Steve Ells and Co-CEO Monty Moran painted a picture of denial. One of the first decisions made in reaction the crisis was to purchase full-paid advertisements. This marketing tactic was done to mask the severity of the e-coli outbreak, sooth investors, and retain loyal customers. In addition to television advertisements, Chipotle decided to advertise using direct mail (Wahba, 2016). This practice does not correlate with traditional chipotle advertising; their last paid advertisement was in 2012. Chipotle has always operated in a fashion that let

The Fast food industry is extremely competitive. Although Chipotle is a step up from most fast food restaurants, it still must

Harassment includes joking remarks or other abusive conduct towards any individual that creates an offensive or hostile working environment. There will be customers present trying to relax and enjoy their meal, and nobody wants to see or hear badgering of each other especially in the presence of their kids and families. No company information may be used for personal gain. Also, the improper use of Chipotle’s name, trademarks, or any other intellectual property is prohibited. This has severe consequences as the future of the company is at stake as well as the overall profitability of the company. If a current or previous employee sold the company’s recipes to a competitor or even decided to use for their financial freedom, this would be irreversible.

Currently, Chipotle serves 100 percent naturally raised pork and over 80 percent naturally raised chicken and beef. Chipotle is also looking into using more sustainably grown produce and locally sourced produce when in season.

The Chipotle Mexican Grille opened its first store in 1993 beginning a new category in the restaurant industry known as “fast casual” (About Us, 2014). This new category featured the “highest quality raw ingredients, classic cooking methods, and distinctive interior design-features that are more frequently found in the world of fine dining.” However, aside from the normally long wait in lines, an order could be taken and served in only a couple minutes. Currently Chipotle operates more than 1,500 restaurants internationally. The following pages will present a balanced approach to the effectiveness of Chipotle’s strategy analyzing financial performance, customer satisfaction, employee/learning and growth, and internal process.

re strong competitors and Yum! Foods leads the industry it is my recommendation that any investments be made in Chipotle.

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

Chipotle is the leader in the fast casual market, with over 1,900 locations, $3.21 billion in annual revenue, and the ability to serve up to 300 customers an hour. It has innovated the restaurant market by providing reasonably priced scratch-made meals, containing local ingredients, all within the confines of a pleasing aesthetic environment (Chipotle Mexican Grill, Inc., 2014; Kaplan, 2011). To reach its success, the firm utilized architectural innovation by stealing components of various types of restaurants already in existence. The company appropriated its rapid meal preparation methods from fast food chains such Subway and Quiznos, adopted its provision of quality food from more upscale casual Mexican restaurants, and implemented a locally based supply chain similar to that seen at many local farm-to-table establishments. This convergence of different properties came together right as the millennial generation was coming of age and demand higher quality, natural, and locally sourced ingredients in meals that could receive quickly. The company has also attempted to utilize an incremental innovation approach by removing all CMO ingredients and testing new foods such as breakfast items, soup, and chorizo sausage (The Associated Press, 2015; Peterson,

One of the reasons that Chipotle has been so successful is because of its management style. The company has set up an adaptive culture that allows employees, managers, and customers to thrive. Managers appreciate people and the new

This business believes in “Food with Integrity”, meaning “whenever possible Chipotle uses meat from animals raised without the use of antibiotics or added hormones. They use organic and local produce when possible. Also, Chipotle supports and sustains family farmers who respect the land and the animals in their care.”

I believe one segment of the Chipotle customer population is the self-expression people. These people are the kind of customers that want to express their values of supporting the local farmers and the farmer’s mission of growing organic food and their way of supporting that movement is by patronizing this kind of restaurant.