Chipotle

Chipotle saw an opportunity in the fast-casual restaurant industry and launched an innovative concept. It believes that fresh and quality ingredients are key and that customers are willing to pay more for such ingredients. To ensure such ingredients, Chipotle uses a large amount of organic food in their restaurants. This not only creates fresher and healthier food options for consumers, but also assists local farms that supply the organic food. Not only does Chipotle use organic food, but it uses produce that is in season. This reduces the costs of transporting produce and ensures that the ingredients are fresh. While competitors attempt to replicate the menu, style, and flavors of Chipotle, they do not have the resources to use organic ingredients as efficiently as Chipotle does. This is one strength of

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.

If the portion size is too small, consumers may consider Chipotle as inadequate place to go when they are hungry. In addition, if the customers go Chipotle with the expectation of filling up their stomach, but the perceived performance is lower than the expected performance, consumers would be dissatisfied with the service. Nevertheless, Chipotle has to consider that portion size is usually larger in the US than in the Europe. Researchers compared restaurants in Philadelphia and in Paris, and found that American restaurants served on average 25% more food than their French counterparts (Shuster, Vigna, Sinha & Tontonoz, 2012). The difference is even bigger for beverages served in fast food restaurants. Currently, McDonald’s small-sized drink served in the US contains 16 ounces of liquids, which is 18% more than the medium-sized drink (40cl, approx. 13.52 ounces) served in Spain. Taking into account the data above, Chipotle may reduce its current portion size served in the US by approximately 25% when it enters to Spain. By doing so, Chipotle may save significant amount of material costs while still live up Spanish consumers’ expectation about the portion

Chipotle, on the other hand, “seems to have created a sustainable branding strategy that leverages its good food, humorous ads, distinctive interior design, and in-store world music” (Wikinvest.com, 2010). The company is positioned to capitalize on their organic and farm raised food, and high quality ingredients. “According to the organic Trade Association (OTA), organic food sales are growing at a 20% clip annually in the US, although such food only accounts for 3% of all food and beverage sales” (Wikinvest.com, 2010). Chipotle is also positioned to tap multiple markets: baby boomers who can afford to dine out, Hispanics, two income families who do not have time to cook, and the socially conscious consumer.

coli in Chipotle restaurants in Washington and Oregon has caused a negative shift in customer demand for the food served at the restaurant. In addition to that, due to the violation of health code regulation, Chipotle had to shut down forty-three food-chains in the infected counties. Because of the loss of forty-three Chipotle restaurants and the decline in consumer demand, the supply services and products also decreases. People who worked at these shut down restaurants loss their jobs and Chipotle loss their profits. The effects of the outbreak of E. coli in Chipotle restaurants caused a negative change the taste and preference on consumers. This will cause a decrease in consumers demand for food served at Chipotle due to their change in taste and preference. When Chipotle decided to shut down some of their doors in Washington and Oregon, this caused the company to lose some of their profits and their ability to produce their food in those counties which caused a negative shift in their market supply. Since there was a negative change in consumers taste and preference for the food served at Chipotle, their satisfaction and enjoyment for consuming that product and service also called utility reduces

Considering the scrutiny that they have faced in recent years for food contamination; that may be hard to believe. I asked through email for information about some of their ingredients, they were willing to give me answers except for their meat. “The food chain began sourcing grass-fed beef from Australia” (Watrous). This may explain why Chipotle didn't answer my question and I had to go searching for the answer myself. Although, the beef they were outsource followed their guidelines, it wasn’t beef from the U.S and it was later found this was the likely cause of e coli outbreak. “For many months now, we have struggled to get all of the beef we need from cattle raised without the use of antibiotics or added hormones” (Watrous). Chipotle does try its hardest to serve food with integrity; however that is very dependent on the supply and demand. So, when demand is too high Chipotle turns to places like Australia or non-safe farming farms in order to feed the consumer. As Patel has stated in his book, “The consumer is part of the problem”. When Chipotle turns to farmers not in their business model; it contributes to the problem that is large scale farming. This Farming poisons the earth through pesticides that find its way into groundwater and eventually the Ocean. Agricultural runoff has proven to negatively impact marine ecosystems. Getting meat from Australia also puts unnecessary CO2 emissions into the

Most advertisements are designed to sell a good or a service. The Scarecrow, a rather artistic advertisement from Chipotle Mexican Grill, has a similar aspiration. This advertisement, however, wants to sell the idea of Chipotle. The scarecrow’s path from supporting the devious industrial food corporation can be paralleled to the evolution of Chipotle’s business model. The United States is filled with industrial fast food restaurants that operate similarly to the Crow Foods Incorporated in the advertisement; they used mass produced animals that are exploited for their products. A well-known member of this system is McDonalds, who at one point owned Chipotle (Mathews). The idea behind Chipotle is practically the opposite of McDonalds: it

There are also healthcare benefits and stock purchase programs for both salary and hourly employees. To top it all off, Chipotle encourages their employees to receive higher education, so they offer tuition reimbursement. All these perks lead to happier employees, which translates to better customer service, which means more profit. Some other strengths include, a strong international presence in the US, UK, Canada, and France, online ordering and occasionally delivery to customers, and all restaurants are owned by the company and not

Nowadays, we often hear the phrase time is money. Hence, the majority of people have no option but to live in a fast pace time and a fast food industry. The value of time has increased so significantly that people are focused on utilizing time focusing on their leisure/career than in the kitchen. Since the turn of the century, the number of fast food industry has evolved extensively to meet the demand of people in the market. Out of numerous fast food industries, Chipotle Mexican Grill (CMG) has established itself as one of the major competitors in the market. With over two decades of history, CMG has been one of the big boys in the fast food industry. It has created its own image as one of the fast-food distributors who focuses on naturally grown food. Established in 1993 by the founder Steve Ells in Denver, Colorado, CMG has more than 2,000 stores worldwide (Chipotle, 2016).

The first factor is Globalization: the world wide goal of using naturally raised standards, Chipotle had the main core value of customers and animals well being and stopped using hormones and antibiotics hormones on animals and started raising them on a free range on farmland: naturally raised animals. Secondly, Consumers: where Chipotle provided them with high quality, tasty and affordable. The third factor is competition: which varies with region, market, and restaurant. Chipotle face stiff completion from Panera Bread, chick-fill-A, Noodle and other companies. The completion is in the form of taste, quality, and speed of service, prices value, brand recognition, location, customer services and competitor condition. The other factor is marketing: the company focuses on word of mouth and strategic marketing promotions although it used radio and billboards Medias without television which was not genuine. Lately, the company has embarked on the sending messages on Twitter and Facebook, which is the modern marketing methods and also helps to reach a large population compared to the historical media. The company has the hope of finding a content delivery platform that would inspire consumers to become curious about where their food comes from, so as for customers to the idea of chipotle have the food with integrity.

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.

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).

* High quality products with the best raw materials (naturally raised beef, pork and chicken)

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.

The Chipotle restaurant is an excellent hotel operating in various countries in the United States, United Kingdom, France, and Germany. It goes by the mission statement; food with integrity, the statement represents the restaurant 's effort to ensuring that customers have access to quality food made of organic ingredients (“Chipotle." N.p). For this reason, the hotel is amongst the restaurants in the countries that mainly serve meat which is naturally raised than any other restaurant. The restaurant observes quality and effectiveness of service delivery, provision of food and the overall hygiene in the working environment.