Chipotle Mexican Grill : Snapshot Of The Company

Conclusions: Since 2007 Chipotle generates a significant financial and operating performance in a varying economic environment. Even in difficult times, for instance the great recession the U.S. experienced in 2007 – 2012, the company generated strong operating and financial results. Due to further innovative concepts it can reasonably be concluded that Chipotle Mexican Grill will continue this path of generating great profits.

In 2012, the restaurant industry was a $435 billion dollar industry (Tristano, 2013).This amounts to a very large market that Chipotle has the opportunity to capture. In that same year the casual Mexican restaurant market totaled a whopping $31 billion in sales (Tristano, 2013). This was a 13% increase for the casual Mexican restaurant market and only amounted to 7% of the entire restaurant market. According to Tristano’s (2013) research, Chipotle Mexican Grill was the second fastest growing fast casual restaurant of all the fast casual restaurant markets in 2012.

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

It turns out even Chipotle isn’t perfect. Seventeen Chipotle locations in Minnesota have been linked to a recent salmonella outbreak and are currently under investigation by the state’s health officials.

The Chipotle scare can have a major impact on the profits that Chipotle will be

During his visit, Ellis learned that raising livestock without traditional farming practices produces better tasting meat. After discovering this, Ellis wanted to serve food to customers within his restaurants that are only organically produced by suppliers who conduct humane sustainable practices with their animals. The growing concern for where the company food comes from and how suppliers grow their livestock and crops caused Ellis to create the company’s philosophy “Food with Integrity” to guide future company operations. However, the company quest for having a higher quality of food comes at a higher cost in food supply. In order to offset these costs, Chipotle raised the price of some of their meat items by $1 or $2 (Pederson).. Sales continued to rise to a total of $131.6 million besides the sudden price hike because customers could taste difference in their food and loved how the company changed their recipe. In 2005, McDonalds decided to sell their stake in Chipotle and focus on their core business operations. The next year, the company became public and sold 7.88 million shares on the New York Stock Exchange (Pederson). Since ending their relationship with McDonalds, the company has been able to open over 800 stores including one Toronto, Canada during the year 2008. Expansion of new stores caused sales in 2009 to increase 14 percent to $1.52 billion and

Chipotles reputation and product were nothing short of stellar. Attracting customers from all walks of life but primarily from the millennial generation. The millennial generation tends to like simple, fresh food without artificial flavors or fillers from environmentally friendly restaurants. Chipotle in turns targets the millennial generation as one of their main stakeholders. For a time, the symbiotic relationship between Chipotle and the millennials thrived. The relationship almost proved to break Chipotle when a crisis of a massive Escherichia Coli (e. Coli) infection breakout occurred affecting the millennial generation the most. A drop-in Chipotles comparative sales has

Chipotle has opened their stores in few countries such as the UK, the US, Canada, Germany and France. It is now time for the corporation to follow the lead from other companies like Yum. Brands such as KFC and Taco Bell as well as McDonalds expand their footprint in the Asian market like Japan. For example, Chipotle operates less than 2,000 restaurants in only 5 countries, while McDonalds operates more than 35,000 restaurants in 119 countries, and Taco Bell, another Mexican restaurant, operates 6,500 restaurants in 20 countries which shows that the Chipotle could do better if it expands its business.

This paper explores the mission, vision, values and principles of Chipotle Mexican Grill that guide them in the restaurant industry. Their key mission, vision, and values revolve around providing food with integrity and changing the way people think about and eat fast food. Chipotle’s principles include sticking to the basics of a simple menu and uncomplicated, interactive employee roles.

Between fast casual and fine dining, the fast casual industry remains a rapidly growing industry in the hospitality sector. From its early stages in 2000 to 2014, the fast casual industry has grown 550 percent with Americans spending over $21 billion at fast casual restaurants in 2014. Separating itself from fast food, fast casual provide consumers with fresh ingredients, customization and superior customer service. Founded in 1993, Chipotle (CMG) is widely recognized as the cornerstone of the fast casual industry. With over 1600 locations worldwide, Chipotle continues to grow with revenue increasing 27.8 percent from 2013 to 2014. Since Chipotle went public in 2006, investors have longed for a new company to replicate Chipotle’s success.

Chipotle Mexican Grill Inc. is considered part of the fast-casual and high quality food restaurant industry. The fast casual industry is today the fastest growing segment of the restaurant industry. The definition of a fast casual restaurant is an establishment that promises rapid service, higher quality foods, and a more enjoyable atmosphere than that usually offered at a typical fast food restaurant. (Analysis of Strategic move by Chipotle- book). Therefore this industry is poisoned right in between the fast food restaurant and casual dining restaurant industry. It is considered part of the fast food due to the following qualities; high-speed service, self-service, simple menu, no drive-thru provided. The casual dining due to the higher quality

In 2014 consumers spent over $21 billion in fast causal food and Chipotle was second in market share. This led to a spike in stock prices sending them from $47.52 at the beginning of 2006 up to a company high in June

Management is the backbone of any good company. In order for a company to successful, a strong management team is needed in order to meet goals in an effective and efficient manner. Chipotle opened its doors in 1993 when Steve Ells took a chance and began his business in San Francisco. Chipotle is a chain of Mexican restaurants that is based in Denver. Chipotle is often cited as the company that started the fast casual movement where customers can get a healthy prepared meal quicker than other traditional styled restaurant. The fast casual restaurant concept was well received and Chipotle’s popularity expanded all across the United States. Customers could not get enough of the Mexican chain and massive lines could be seen stretching outside the stores all across the country. Along with its popular food, Chipotle Mexican Style Grill is a company that contains a successful management style. Why? What sets this companies management apart from the rest? There are many factors that we could analyze to understand the success of Chipotle, yet for the purpose of this paper, we will look into the cooperate culture of the company, human resource management, their leadership style, and how Chipotle deals with and how the company manages in times of crisis.

As Chipotle began to grow and expand, Steve took the initiative to learn about the way most of the food in the US is produced and processed. He was quite disturbed when he discovered that pigs were raised in confinement, produce was grown on factory farms with very little respect for the environment and dairy cows were confined and injected with hormones (Ells). This experience prompted Steve to meet with ranchers and

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.