Chipotle Mexican Grill

1653 WordsMay 13, 20137 Pages
John Hawer Herrera February 21, 2013 MGMT 561 Chipotle Mexican Grill, Inc.: “Food With Integrity” I. Key Problem What Steven Ells began with a small taqueria in Denver, Colorado in 1993, one may not have foreseen this venture to become the fastest growing restaurant chain in the last decade. By 2006, Ells’ idea made its initial public offering with 535 restaurants throughout the world. Things were going tremendously well for CMG until late afternoon on October 18, 2012 when Ells finished receiving the company’s third quarter results. While data indicated an overall satisfactory outcome, it was the competition from Yum Brands’ Taco Bell and their recent launch of the Cantina Bell menu that would result in…show more content…
This would also allow for cost effectiveness on both the consumer and Chipotle’s side, however, it would go against CMG’s mission statement of being “Food with Integrity”, lower its value and become a cost leadership strategy as opposed to being a premium product and higher price. A third alternative is for CMG to continue to compete effectively by doing what they already are doing which is differentiation based on quality and sustainability. This approach supports its philosophical message of better food for the consumer and community as well as being environmentally conscious. This allows CMG to maintain its values and remain within their strategy segment. On the contrary, this alternative force Chipotle to increase their menu prices while reducing its consumer surplus. IV. Suggested Course of Action After carefully analyzing the different alternatives, the best course of action is to continue to compete effectively on differentiation based on quality and sustainability given the mounting competitive and sourcing challenges. Even thought Taco Bell’s new menu seems like a significant threat they are far from creating the same value and reputation Chipotle has created since it opened its first restaurant in 1993. Not only does Chipotle provide the freshest and best ingredients with a bold flavor, they are setting themselves apart from any other restaurant chain and main competitor since they

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