Essay on Industry Analysis Chipotle

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.

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 targets people ages 18-24 that are in the middle class and presumably well-educated. As per the U.S. Census data accessible in April 2016, Chipotle's business sector comprised of 13.3 million family households with a 10 billion cap out of a 120 billion fast-food market. The information uncovered that 79% of the family households were non-Hispanic whites and 33% of them had higher educations or graduate degree. There are additionally family buyers of Chipotle which 68% of them were wedded with 35% in a two-person family to be a couple and 43% in a three to four-person family household wedded with kids. Chipotle searches for grubbers and wellbeing fanatics who likes to eat big amounts of food or have a meal that is good for the body. Chipotle targets individuals who are earth cognizant that takes after the 'Food with Integrity' mission, socially engaged, technology knowledgeable, and financially

Chipotle, which is still hurting from food safety scares last year. Chipotle is adding four new people to its board as the burrito chain tries to turn its business around. Matthew Paull, a former chief financial officer at burger chain McDonald’s Corp, is on Pershing advisory board.The picks were made in agreement with activist investor Bill Ackman, whose firm Pershing Square is Chipotle's biggest shareholder. The company is in the midst of improving its customer service , a move it hopes will help it win back people.

To retain its customers Chipotle fashions the “Chipotle Cultivate Foundation”(Eric 2003); a non-profit organization that supports family farms, animal wellbeing, pasturing, and fighting obesity. What’s more, it produces a film campaign to raise public awareness of animal treatment and environment fortification. Moreover, Chipotle launches its “Farm Team invitation-only loyalty program” (Eric, 2012). With this program customers earn points not only in food purchased, but also by the online curriculum that educates about food supply and production. Then consumers redeem their awards points in food price reduction.

Last week, Stanford University announced a plan to cover tuition costs for more accepted students. Tuition typically runs around $46,000 per year. The school said that 77% of its undergraduate students currently graduate with no student debt. However, the goal is to create a more accessible education.

How many people can say that an experience with a job positively changed their character? When I first applied for a position at a Chipotle, I had no idea a fast food restaurant could affect my life in a personal way. Through this work experience, I have learned how to empower a team through elevation, how to have high standards in order to be a top performer, how to lead a team, and how to be a part of a family for the benefit of a community.

Chipotles greatest strengths is its financial strength. Chipotle had a yearly current ratio above 2.75 from 2007 to 2015. Chipotle has a strong balance sheet with many assets and high liquidation. Another strength Chipotle has is its customer experience. Customer are allowed to see and choice the ingredients they want in their product. The customers are then allowed to grab their own utensils and various other condiments. Another strength is its production layout which is in a service line. A customer and employee move from the first stage and moves towards the cash register. This layout, along with manger supervision, allows for fast service with low ticket times and high customer satisfaction. Chipotle offers high quality ingredients that provide a great relationship between it suppliers. Chipotle uses farm raise animals in their products, which has gain Chipotle a great relationship within its customer base. These animals and ingredients contain no hormones or preservatives. This gives

Chipotle Mexican Restaurant is one of the most famous fast food hot spots in America. They created a niche of providing healthy, organic, and locally sourced ingredients for their stores, but serve it as fast as other fast food companies out there. According to their website, Chipotle opened their first store in 1993. Ever since they opened they liked to use the term “Food With Integrity.” Like mentioned earlier, they buy good quality products from farms that respect animals, and the environment, which is where the term “Food With Integrity” comes from.

As a fast food restaurant, economic changes may have a large effect on the profitability of Chipotle. To this extent, being in the explosive food industry has its ups and downs. For example, the chicken or prices of natural ingredients may increase due to inflation, scarcity, or a number of other factors. This will translate into an increase in price of food for Chipotle consumers. This may ultimately lead to a decrease in sales which may cause clients to take their business elsewhere thus affecting brand loyalty.

Overall Chipotle’s financials look good, however their VIRNE shows that they lacking in rare, inimitable, and nonsubstitutable products in their business model. The competitive strength analysis leans heavily in their favor, with Chipotle scoring high in all four of the KSF categories; beating Taco Bell by 2.9, Moe’s by 0.8, and Qdoba by 1.2. For Chipotle’s go-to-market strategy I recommended that a few things that they could work on are: focus more on food costs, and less on focusing on the organic food market, however that would harm the brand that they have built as being “Food with Integrity”; focus more on their other restaurants: The Shophouse and Southeast Asia Kitchen; however, they would then run into new competitors, such as Panda Express; as well as expand their current menu, possibly adding breakfast, this is probably the most feasible for Chipotle right now because of cost, and it was actually discussed in 2014.

This past October, 2015, Chipotle Mexican Grill’s reputation took a big hit following E. coli and norovirus outbreaks that left tons of people sick. As a result of this, the company closed 43 restaurants in Washington state and Oregon after linking some restaurants to an E. coli outbreak, which sickened 52 people around those area. The E coli outbreak has led to wide spread to other states that left customers sick from their food and has caused the company a down fall of their

Chipotle first opened in Denver in 1993 and the chain has grown to more than 900 stores primarily in the U.S, its major presence, and a total 1,750 locations worldwide. However the business has expanded so much it, the Mexican Grill restaurant has even been able to open a location in Toronto, Canada. Although Chipotle has opened their restaurant with the simple concept of being able to build your own taco, burrito or bowl to your own liking, that concept of simplicity allowed them to reach heights, that haven’t before been seen in the fast food business.

Chipotle Restaurants recently announced that they will begin testing drone based delivery service to students at Virginia Tech and earlier this year Domino’s began using robots to deliver pizza in New Zealand and Australia. We enjoy seeing creative innovations in the food industry, but we also feel the need to examine these achievements from a food safety perspective. With unmanned delivery drones and robots being tested, we grow curious to see how major food safety training standards such as NFSRP and Servsafe will adjust with growing automation in the food service industry.

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.