Chipotle Swot Analysis Essay

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

In the year of 2005, the total revenue of Chipotle was $627.7 Million dollars. "Chipotle Mexican Grill Inc. (CMG-$53.50 a share) was a January spin-off with an initial public offering price of $22 -- from McDonald's, the largest retailer of hamburger buns in the world. By year-end 2004, CMG had 387 locations, generated $470 million in revenues and earned 21 cents a share."(Berko) Last year, CMG had 485 locations that produced $627.70 million the growth revenue was at 33.40% in 2005. "pushing tacos, burritos, salads, plus huge helpings of tired rice and boring beans reporting net income of 78 cents a share. This year, CMG expects to earn 71 cents a share and, according to Prudential Securities, CMG will report $1 billion in 2007 revenues (that's a lot of beans) and post higher earnings of 98 cents a share." (Berko) Although Chipotle is at an all time high I believe that it may well be trading its shares at to high of a price. Mcdonalds the best and most efficiently run profitable fast food restaurant is trading their shares at 17 times earnings. Today Chipotle is trading at an outstanding $56.07 Per share. I don't believe Chipotle is worth anything over $30 a share. Although the price of chipotle stock is too high there should still be a hefty revenue at year end 2007. Predictions suggest 1 Billion dollars. For 2005

Due to the fact that Chipotle is worried about providing customers with the best possible ingredients and in the same time, concerned of taking care about environment, animals as well as farmers, which in this case, are the main suppliers, we can encapsulate Chipotle in a Sociocultural segment.

Chipotle, ever the noble ambassadors of good burrito will, have been humble and cooperative throughout the investigation. Health officials are giving the company kind words and gold stars (despite, you know, the salmonella). One spokesperson for the department of health said that “Chipotle has been extremely proactive in collaborating with investigators to quickly control the outbreak and identify its source.” Another asserted the Health Department’s confidence that it is now safe to eat at Chipotle, sharing that he had a burrito bowl there last Wednesday.

If you are not aware of the recent food poisoning incident with Chipotle, then clearly you have been taking some time off from the internet. An outbreak occurred from Chipotle in which more than 40 people became ill with E. coli. Chipotle has been in hot water since this, and it makes us realize that not all food is safe. With this in mind, the idea of other dangerous foods, outside of Chipotle, should be addressed.

After interviewing 59 of the people they reported eating at a Chipotle Mexican Grill restaurant in at least 19 different restaurant locations. The patients were found to be infected with a strain of Shiga toxin-producing Escherichia coli O26 (STEC O26) (CDC, 2016). But then at the height of this outbreak, at least 120 people who ate at a Boston Chipotle contracted norovirus (Malcolm, 2016). This additional outbreak provided even more complexity to the investigation’s attempt to identify the disease cluster.

Chipotle makes sure that the plants animals are being treated right and are not fed GMOs. Years ago, the carnitas (pork) was removed from restaurants because the animals were not treated right. Our fruits and vegetables are washed and blanched, to remove germs and other harmful bacteria. Our foods and vegetables are hand cut to a certain style. We focus more over quality than with quantity but quantity is still our main concern. We did have a summer rewards program (it was just a test drive. It will be back soon) and we have a few coupons such as the Buy One, Get One Free coupon and the One Free Chorizo coupon. At Chipotle, were always thinking of the customer’s health? From our utensils to our foods, everything has a certain temperature. To make sure that everything is to temperature, we fill out “the Black Book” which is a book that records the temperatures of the foods on the front line, the grill, and the walk-in fridge. These get done periodically throughout the day. Other than temperatures, we have portion sizes to help with your health. Some people may not agree with the portion sizes but portion sizes are here for two reasons; to save food and to not fill you up on so much

Although many customers enjoy that Chipotle is sticking to their “Food with Integrity” mission statement, it could prove to be very costly to them and their customers. Chipotle’s food costs are currently higher than the industry average. Per Exhibit 1 of the Chipotle’s article, shows that Taco Bell cost half the amount for the same type cuisine at Chipotle. Chipotle charges higher prices for a fast food store, with the average customer spending approximately $8.50 per visit. It is important to monitor of economic changes of customer spending habits so they are aware of price elasticity and

One way Chipotle could approach the increasing food costs would be to develop local sourcing for certain vegetable and meat products. Chipotle could decrease variable food costs by partnering with local farmers and signing exclusive contracts. More than one farmer may be needed in order to serve all of the Chipotle restaurants in a regional area, but overall, this plan would decrease packing, shipping, and gasoline costs associated with transporting products across the country. Chipotle could even set up its own supply chain logistics to pick up and deliver the produce from the farms to the specific restaurant, further decreasing operational costs. Because the food is locally sourced, Chipotle can keep a close eye on its producers to make sure they are following the “Food with Integrity” values, such as raising grain-fed beef and cage-free chicken and growing organic beans.

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

As recently as last year Chipotle was the victim of a pork shortage. In January of 2015, it cut ties with a supplier that violated its standards, which ban the use of hormones or antibiotics that require pigs to have access to the outdoors and to deeply bedded barns. After dropping the supplier, Chipotle had a tough time finding a replacement. As a result, hundreds of restaurants were unable to sell carnitas, a popular menu item. If Chipotle expands even more internationally, it could continue to run into this problem, and it could expand to other ingredients.

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).

CMO Mark Crumpacker stated, fast-food marketing typically is a game of trying to obscure the truth; The more people know about fast-food, the less interest they’d want to be a customer. Chipotle’s mission statement “Food with Integrity” reflects its focus on fresh ingredients; great food with a socially responsible message made them one of the first organic oriented fast-food restaurant

From 2006 to 2011 Taco Bell’s reputation was suffering tremendously and it all started when there was an E. Coli outbreak. E. Coli or Escherichia coli is for the most part being a common yet harmless bacteria but extreme strains have been known to cause a variety of symptoms from abdominal cramps to diarrhea. The E. coli outbreak resulted in 71 infections, 53 hospitalizations, and 8 cases of people with kidney failure that spread over the course of 5 states. Taco Bell which is a Mexican-style restaurant market in the U.S. that serves burritos, tacos and other Mexican specialties. The illnesses onset ranged from November 20 to December 6. The peak of the people becoming ill was the very last week of November. Past December 6 there was no further outbreak of the disease. After the outbreak CDC, the center for disease and control and

As of late 2015 and early 2016, Chipotle Mexican Grill faced a serious problem with food safety and received an ethical backlash because of it. According to the Food and Drug Administration (FDA), the Centers for Disease Control (CDC) along with state and local officials investigated two cases of E. coli O26 infection outbreaks from food served by Chipotle restaurants in several states