Chipotle's Business Analysis

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.

A wide variety of food and a part of the community versus which is healthier which are things that need to be considered when choosing what to eat. Chick-fil-a is a unique restaurant because chicken is the only meat on a meat-based menu. Chipotle, while not unique, is very good for the few items they make. Both restaurants are so good it is hard to choose which to go

In 2012, the restaurant industry was a $435 billion dollar industry (Tristano, 2013).This amounts to a very large market that Chipotle has the opportunity to capture. In that same year the casual Mexican restaurant market totaled a whopping $31 billion in sales (Tristano, 2013). This was a 13% increase for the casual Mexican restaurant market and only amounted to 7% of the entire restaurant market. According to Tristano’s (2013) research, Chipotle Mexican Grill was the second fastest growing fast casual restaurant of all the fast casual restaurant markets in 2012.

Based on my experience as a customer at Chipotle, their organizational culture is centered on high quality products and enjoyable customer service. Chipotle’s artifacts can be seen throughout their store and in their products. They deliver high-grade good in a clean and friendly atmosphere. The posters within the store

The main competitors of Chipotle include Panera Bread, Qdoba and Pei Wei as well as regional competitors, which are providing similar services and products and in some cases cheaper than Chipotle.

Chipotle’s strategy is focus on the selected menu that they can provide best to the customers. Also, differentiate with other fast food restaurant such as Taco bell. Chipotle’s competitive advantage is related with the differentiation. They are in the fast-food market, but offer fresh, local produced ingredient and no hormones added to their meat and other dairy products. Therefore, customers who seek integrity, they will go to Chipotle for Mexican fast food.

Major competitors include other Mexican fast casual locations such as Baja Fresh, Del Taco, Qdoba Grill, and market leader Taco Bell. Additional competitors in the broader market include other fast casual locations such as Panera Bread

Chipotle Mexican Grill, Incorporated is a restaurant that offers Mexican food including burritos, tacos, burrito bowls (a burrito without the tortilla), salads, and more. The company has been in operations since 1993, starting out as one unit and growing to 1,300 units in over 46 states, the District of Columbia, Canada, and the United Kingdom in 2011. The restaurant served fast-casual food with a customizable menu. The restaurant prides itself on serving food made from scratch with wholesome, organic ingredients (Chipotle, 2016). Chipotle is a restaurant in the fast-casual dining industry, focusing on food sourced from sustainable farming practices including meat product that is responsibly raised in humane ways

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

Chipotle Mexican Grill, Inc. is one of the leading fast-casual Mexican restaurant chains throughout the United States, United Kingdom, Canada, Germany, and France. Chipotle has been in operation since it was founded in Denver, Colorado in 1993 by Steve Ells. It is known for its fresh, gourmet, and increasingly organic ingredients. In 1995, Chipotle opened their second restaurant and later opened their third restaurant with a Small Business Administration loan. In 1998, McDonald’s made an investment into the company that allowed Chipotle to expand quickly. In 2006, McDonald’s spun off its non-core assets and divested Chipotle, which went public on the New York Stock Exchange. In 2015,

Chipotle’s competitive strategy is to use a focus differentiation strategy by aiming to target a narrow market. Chipotle wants to set itself apart from other fast food establishments by targeting a narrower market of consumers looking for variation among product choices. Chipotle uses a focus differentiation strategy through its’ “Food with Integrity” philosophy. Chipotle is focused on serving organic ingredients to deliver the best taste, nutrition, and value. The direct competitors of Chipotle are Panda Restaurant Group, Qdoba Restaurant Corporation, and Taco Bell Corporation.

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.

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.").

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