Chipotle Mexican Grill

Chipotle ventured into a new territory when it was created, as it had an innovative vision for fast-casual restaurants. By using fresh and quality ingredients, Chipotle raised the bar in their segment. The service line where customers could see their order being prepared enhanced the experience of Chipotle. Consumers who were used to eating at fast-casual restaurants where the food was frozen and made out of sight were able to savor the uniqueness of Chipotle. These differences helped Chipotle become successful. However, as competitors copy the traits that make Chipotle unique, Chipotle must adapt and overcome in order to remain a profitable company.

The age old debate: is Chipotle or Qdoba the better fast food Mexican restaurant? Of course, one could choose from many pros and cons for either side, but my goal was to dig down into the debate. Which restaurant has a better atmosphere? Which one has better ingredients? Are there more options at one than another? Which restaurant gives it’s customer more bang for their buck? Although I may be biased because I work at Qdoba, I’ve thoroughly researched each restaurant and come to a conclusion. Each restaurant brings many different options to the table, but in the end Qdoba is far superior to Chipotle in many ways.

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.

Chipotle Mexican Grill is one the fastest growing restaurant businesses in the United States. Chipotle Mexican Grill was founded by the current CEO, Steve Ells, in 1993. Chipotle headquarters are located at 1401 Wynkoop Street, Denver, Colorado 80202. The company operates in the restaurant industry and more specifically the fast casual Mexican restaurant market.

Additionally, support for local and organic farming has shown a decrease in fast food sales. Recently fast food giant, Mcdonalds, has had to close nearly 700 restaurants due to lack of sales (Wahba). The general public is speaking out more and is stating they want fewer additives and more “real” food to be convenient. According to the WORLD HEALTH ORGANIZATION “GMO’s or “Genetically Modifies Organisms” are organisms in which the genetic material has been altered in a way that does not naturally occur”. The actual effects of GMO’s in food have had extensive research done to confirm suspicions that they are hazardous to the human body and are not suitable for consumption. Chipotle was the first fast food chain to disclose any artificial ingredients

Chipotle has a moderate level of threat from substitute products. They can have this threat from competitors lowering their products, people buying the ingredients at a grocery store and making it at home, and the price sensitive segment of customers. These three parts are part of what make up this five forces model of Chipotle.

Strength 1: Largest Restaurant Chain in Market Segment, with highest share Chipotle has the largest share of the fast casual marketing segment in the Unites States. Chipotle has over 1,400 locations and plans to open an additional 140 locations this year. By holding the largest share of the market, Chipotle is able to trial, expand, and experiment with new ideas in certain geographic locations. Chipotle is able to trial new menu items and not have it affect the bottom line, and in addition, they are able to gather an incredible amount of information regarding customer data. This data will allow Chipotle to understand the different demographics of its customers in the trial locations. With its 1,400 locations in many locations provides Chipotle with the strength to trial new ideas.

Chipotle Mexican Grill was a concept turned reality by a gentleman by the name of Steve Ells. Chipotle Mexican Grill provides excellent Mexican cuisine driven by a concept of “Food with Integrity”. The first chipotle Mexican grill was opened in 1993 in Denver Colorado. By the end of 1995 there were three. In 1996 alone, Steve Ells opened five more Denver-area restaurants growing by a total of eight stores in three years. By 1998 Chipotle Mexican Grill was showing much promise. In order to meet their growth needs Chipotle took on outside investors.

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

All organizations have their own unique traits that differs them from others. There are a lot of reasons that helped chipotle grow and expand in the way they did. One of the main reasons is that their main focus is on their employees. They believe that creating a culture that focus on helping your people to grow and develop is the base for success. By having employees who love what they do; they will help in creating a brand that customers will love and they will be committed to accomplish the company goals.

Despite the many benefits of Chipotle’s managing style, it was still unable to escape major issues concerning their food products. For a while it seemed that Chipotle had discovered a full proof concept; they could create delicious and healthy food without negative repercussions. The company’s stock was doing amazing in the market and investors were ecstatic. However, at some point in time, all companies face some sort of crisis and Chipotle is not an exception. It is how Chipotle manages the crisis which determines if it will recover.

Changes in customer preferences, general economic conditions, discretionary spending priorities, demographic trends, traffic patterns and the type, number and location of competing restaurants have a moderate effect on the restaurant industry (Chipotle, 2010). One example of customer preferences being a driver in the industry is the “Whole Food-ism Movement” which has put a large focus on organic, antibiotic-free, and non-processed foods (Mansolillo, 2007). Consumers now look for healthier options when eating and an overall healthier lifestyle. Chipotle has been able to benefit from this movement by carrying on their “Food with Integrity” mission (Chipotle, 2010).

Chipotle Mexican Grill is an American chain of fast food restaurants in the United States. The company rose to prominence right from its inception in 1993. The company’s founder Steve Elle wanted to serve customer inexpensive and yet delicious food at the pace of a fast-food restaurant. The ability of Chipotle to serve, “slow food, fast” is what set it apart from its competitors and made it widely popular. In 2012, Chipotle owned 1,458 restaurants all over the country and was serving 900,000 customers per day in 43 states.

It is also more widely spread geographically. Subway also offers the “choose your own” style of service, but it does not serve organic foods ("Chipotle Mexican Grill, Inc. SWOT Analysis."). Hot Head Burrito is another Mexican style restaurant that would be considered a competitor. These restaurants offer cheaper menu prices, lower-carb options and “diet menus” ("Chipotle Mexican Grill, Inc. SWOT Analysis."). While Chipotle offers none of these things, they have quite a large target market and have grown tremendously just in the last five years ("Chipotle Mexican Grill, Inc. SWOT Analysis.").

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.