preview

Chipotle Was The Driving Force Behind The Fast Food Industry

Decent Essays

Introduction
Ford’s “Speedee Service System” was the driving force behind the fast food concept. In 1948 McDonalds was the first restaurant to implement this system. McDonald’s system included a standardized menu that permitted restaurants to provide consumers’ food fast(Sanna,2006). In 1993 Chipotle opened in Denver, Colorado. Over the last 24 years, Chipotle has grown into a publicly traded corporation that generates $3.2 billion in revenue. Chipotle currently operates in 43 states in the United States and several countries internationally(Thomas,Peteraf,Gamble,&Strickland,2016,p.c-141). By identifying changes in the fast food industry, the key success factors of Chipotle, Chipotle now and in the future, and recommendations for the organization …show more content…

In the third quarter of 2014 McDonalds had a 30% reduction in earning. Analysis believes that the drop in sales was a result of the mistrust millennials had towards the fast food industry (Jankowska,2015). The change in demand has influenced the fast food industry to developed new menu items and to create new strategies to change the consumers' perception.
Apps
Over the last ten years app base technology has evolved marketing methods of the fast food industry and increase the exposure of companies to the end consumer(Elgan,2014). Apps have also helped the fast food industry give customers access to menu items, advance payment, and GPS store location(Elgan,2014). The change has helped the fast food industry enhance the experience of consumers and has helped them increase the service that they provide.
Labeling …show more content…

The company has made a new commitment to “become the leader in food safety, just as we are known for using the very best ingredients in a fast-food setting”(Berfield, 2015). Chipotle has changed several standard operating procedures and processes to increase the quality of the produce, vegetables and meat they use in stores. To ensure quality standards in all stages of the system, Chipotle has evaluated and critiqued suppliers' operations. Chipotle also has changed the way they handle vegetables and have enacted new systems to supply high-quality ingredients to restaurants(Berfield, 2015).
Future Growth
The year 2015 was a bad year for Chipotle. Going into 2016 Chipotle had plans to continue to grow the organization by opening 220 to 235 new restaurants. Chipotle has also invested in developing new chains that use the Chipotle system. ShopHouse and Pizzeria Locale are two food chains that Chipotle create. Chipotle has also applied to trademark a burger chain called Better Burger(Yu, 2016). Chipotle diversification in the fast food industry is promising and will give them the ability to grow to new levels in the future.

Get Access