Chipotle Mexican Grill
Snapshot of the company
Chipotle Mexican Grill, Inc. is one of the leading fast-casual Mexican restaurant chains throughout the United States, United Kingdom, Canada, Germany, and France. Chipotle has been in operation since it was founded in Denver, Colorado in 1993 by Steve Ells. It is known for its fresh, gourmet, and increasingly organic ingredients. In 1995, Chipotle opened their second restaurant and later opened their third restaurant with a Small Business Administration loan. In 1998, McDonald’s made an investment into the company that allowed Chipotle to expand quickly. In 2006, McDonald’s spun off its non-core assets and divested Chipotle, which went public on the New York Stock Exchange. In 2015,…show more content… Chipotle has very little political factor disrupting operation. They rely on purely organic products so in case the FDA approved more intense regulations regarding the fast food industry. While organic food may be good for nutrition, it does raise the risk of foodborne illness. In September 2015, Chipotle closed all in the West Coast markets due to a reported outbreak of E. coli bacteria. As a fast food restaurant, economic changes have a large effect on the profitability of Chipotle. Being in the food industry it has its pros and cons. Prices of ingredients will increase due to inflation and the sales in food industry are primarily the result of discretionary purchase. Chipotle will have increase the price of the food products which might cause customers to purchase elsewhere cheaper. Consumers to tend to either purchase fast food or cook at home. Another factor that effects restaurant economically is labor cost. To provide good service to customers, Chipotle will need to hire more experienced employees are would most likely want a better pay and benefits. While Society and culture change in every generation, Chipotle must adapt to stay ahead of their competitors and stay relevant to their consumers. What was popular 10 years ago may not be popular today or another 10 years down the road. In the past years, consumers are becoming more and more health conscious and are more aware what are going into their body.