Chipotle Rivalry

Do you have a favorite fast food? There are many different fast food restaurants and two of the most popular are Chick-fil-a and Chipotle. Chick-fil-a is a restaurant who has a chicken based menu. Chipotle is a Mexican who is all about burritos and tacos. Both Chick-fil-a and Chipotle are good fast food restaurants, Chick-fil-a has a wider range of food choices and has more active role in the community but Chipotle is healthier which makes choosing which one is better a lot harder.

Where and when did you observe the behaviors? Who made the observations? On 1/28/16, En-Lei observed inside of Chipotle. On 1/29/16 and 1/30/16, Matt observed across the street from Chipotle. On 2/1/16, Dana observed from a window across from Chipotle in the lobby of the Huntington Hall. On 2/2/16, John observed across the street from Chipotle. What behavior categories did you observe? How did you define each behavior category? We observed the outwardly happiness or unhappiness of individuals leaving Chipotle during lunch hours. We defined outwardly happiness as the smiling of each individual leaving Chipotle and unhappiness as the lack of a smile. When and how did you make observations? We used the frequency method of observation during lunchtime

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

In this case, we can face 2 main points: first of all, if we see Chipotle as “fast food”, pre-cooked dishes may be a threat for them, because the main reason, although it offers great quality of products and respect for environment, is that customers don´t have or don´t want to cook because they do not have time for it. In the other hand, McDonald’s in the industry of fast food, ranked best value as we can see in page 49 exhibit 5A is a serious threat because of cheaper products, so switching costs in this case is very high, although food quality cannot be compared.

The following is an analysis on three different behaviors observed 5 different times for ten minutes. The behaviors observed were: frequency of getting a drink, phone usage, and talking. The purpose for choosing frequency of getting a drink was; you hear that Chipotle is always crazy busy, but how many customers actually buy drinks? The purpose for choosing phone usage was; how many opportunities for social interactions are missed due to the fact that everyone is glued to their phones? This sparked the curiosity of how long are people really on their phones during a certain time period. Lastly, is talking. With phone usage being a problem, how long are people actually engaging in social interactions with each other?

Despite all the troubles and safety concerns that the company went through, chipotle is striving to improve its image and standard. According to its founder, they have been implementing an enhancing their food safety plan which will establish the company as an industry number one in food safety. Also, the company have put in place state of the art food safety standards with their suppliers. Doing so will ensure that the food delivered to our restaurants by our suppliers is safer than ever before. In store, they are also going to be improvement in the way the food is process. This will include washing and cutting all produce items, shredding cheese in central kitchens, blanching of some items, and new protocols for marinating chicken and steak

"Fast food is popular because it 's convenient, it 's cheap, and it tastes good. But the real cost of eating fast food never appears on the menu," was said by Eric Schlosser. Several people in America have become dependent on fast foods. How many of the people who eat this food actually know what is really in the food or how it was made? Others don 't think about it, because within ordering, three minutes later a customer can pull up to the window, pay, and get food. It is quick and cheap. The United States has become dependent on fast foods because they are everywhere, but the consequences of these facilities have brought health issues and closing of community restaurants.

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).

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.

Analysis of the External Environment Within the fast casual sector, there are certain outside trends and forces that the industry must address. Many of these trends and influences can lend themselves to being opportunistic in nature; however, there are some that can jeopardize the well-being of the restaurant. The success of a Chipotle ultimately depends upon how well it can use its strengths to take advantage of external trends. To analyze specific opportunities, we looked at eight unique factors we have identified as vital to growth. They include an increased interest in organic and healthy food, improvements in technology, sustainable business model, a growing worldwide middle class, projected growth in the fast casual and quick service

The Chipotle Mexican Grille opened its first store in 1993 beginning a new category in the restaurant industry known as “fast casual” (About Us, 2014). This new category featured the “highest quality raw ingredients, classic cooking methods, and distinctive interior design-features that are more frequently found in the world of fine dining.” However, aside from the normally long wait in lines, an order could be taken and served in only a couple minutes. Currently Chipotle operates more than 1,500 restaurants internationally. The following pages will present a balanced approach to the effectiveness of Chipotle’s strategy analyzing financial performance, customer satisfaction, employee/learning and growth, and internal process.

Chipotle first opened in Denver in 1993 with a simple idea behind it, “food served fast didn’t have to be “fast-food” experience”, (Chipotle Mexican Grill, 2015). Prior to CEO Steve Ellis opening the restaurant chain, he himself was a chef. Since its creation, Chipotle has become a phenomenon in the restaurant industry and has experienced tremendous growth since it went public in 2006 with over 1,600 restaurants in Canada, United Kingdom, Germany, and France, with the majority located in the United States (Chipotle Mexican Grill, 2015).

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.

Thus, Chipotle must find a way to differentiate itself from other western restaurant chains, while integrating itself into the Chinese culture. It can use its capital and reputation for using local and sustainable ingredients to build a strong brand—a core competency that will give it a competitive advantage in the Chinese market. In a large, international city like Shanghai, local street food is cheap, but people will still want to dine at higher-end western restaurants because of that entails a higher status (Maxfield,

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.