Essay On 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 purpose of this project is to tie together the various topics in microeconomics that are discussed during the semester. The project involves an analysis of a particular product or service, a company that produces the product, the industry that produces the product, and an industry that produces a raw material or input used in the production of the product you choose to analyze. Choose any final good or service (no basic commodities, although this could come in the analysis of an input market). Use this as an opportunity to gain knowledge about the economics of a product or service that interests you.

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.

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.

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

When we look at the beginning we see a beautiful billboard of a farm and the crops that come out from it. Then as it fades away we are left with a cracked and almost colorless picture. To me this symbolizes the goals of the original company owners of those food corporations. The original owners saw a vision of better food for the consumers. Then along the years those visions faded away and a bigger picture popped out. That picture would be money. To achieve their goal of making more profit they had to leave the values and moved on to a more efficient and profitable system of creating food. That system would soon become questionable to the public eye but for the most part we still consume the food no question asked. What chipotle wants is us to go back to

The advertising will convince 18 to 34-year-old professionals with active social lives that eat at Chipotle will live healthier lifestyles, without having to break their budget. The support will be fresh food, raised healthy by experts.

During his visit, Ellis learned that raising livestock without traditional farming practices produces better tasting meat. After discovering this, Ellis wanted to serve food to customers within his restaurants that are only organically produced by suppliers who conduct humane sustainable practices with their animals. The growing concern for where the company food comes from and how suppliers grow their livestock and crops caused Ellis to create the company’s philosophy “Food with Integrity” to guide future company operations. However, the company quest for having a higher quality of food comes at a higher cost in food supply. In order to offset these costs, Chipotle raised the price of some of their meat items by $1 or $2 (Pederson).. Sales continued to rise to a total of $131.6 million besides the sudden price hike because customers could taste difference in their food and loved how the company changed their recipe. In 2005, McDonalds decided to sell their stake in Chipotle and focus on their core business operations. The next year, the company became public and sold 7.88 million shares on the New York Stock Exchange (Pederson). Since ending their relationship with McDonalds, the company has been able to open over 800 stores including one Toronto, Canada during the year 2008. Expansion of new stores caused sales in 2009 to increase 14 percent to $1.52 billion and

Chipotle is facing numerous challenges due to the fact that E. coli outbreak which requires the corporation from the key stakeholders to keep it under control and apply the new food safety protocols which can aid to bring the regular customers back. Although the main cause remains a mystery, Chipotle’s E. coli outbreak has been authoritatively declared officially over by the experts. However, since the poisoning outbreak, the impact of the reduced number of customers affects the profit which the company used to enjoy before such eventuality (Scholes 27).

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

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).

Chipotle has categorized its restaurants as “fast-casual” dining. The dining experience is similar to that of fast food restaurants. The customer orders and pays at the counter; the real difference is made in the quality of the food. The food offered by Chipotle is of a higher quality than the food offered by McDonald’s, Burger King, or Taco Bell.

Chipotle’s “Back to the Start” advertisement captures the sentiments of the audience by depicting Chipotle’s competitors’ practices as unethical. In both “Back to the Start” and the “Scarecrow” advertisements, Chipotle attempts to align itself with society’s growing belief that humane agriculture is better. Chipotle’s advertisements present their practices to be ethical, which sets its products apart from its competition. However, Chipotle’s message employs the same sentimental appeals and logical fallacies that are effective in their competitors’ advertisements.

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.