Essay on Marketing Opportunity: Chipotle Mexican Grill

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1.1 Brief History Chipotle Mexican Grill originated in Denver, Colorado in 1993. In 1998, McDonald’s became the majority shareholder; however, in 2006, McDonald’s divested its controlling interest. Chipotle became a public company listed on the New York Stock Exchange in 2006. It currently has 1,083 locations across the United States and Canada. In May 2010, Chipotle expanded into Europe, opening their first restaurant in the United Kingdom. (Form 10-K Chipotle Mexican Grill, Inc., 2011)
1.2 Product Offering Chipotle’s cuisine is Mexican. Their menu consists of burritos, tacos, burrito bowls, and salads prepared with fresh ingredients employing classic cooking methods. The customer proceeds down an assembly line choosing the
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A growth of 3.9% for 2011 is forecasted for the restaurant industry; however, the fast casual segment is expected to outperform the average with a 4.3% growth rate (Consumers still thrift when dining out, 2011). In 2010, Chipotle showed an increase of 20.9% increase in revenue over 2009, opening 129 new restaurants. Chipotle is planning to open 135-145 new restaurants in 2011 (Form 10-K Chipotle Mexican Grill, Inc., 2011).
2.2 Market Needs Diners are becoming increasingly aware of how foods are prepared and inquiring on where the foods originated. Locally sourced meats, locally grown produce, sustainable seafood, and healthy children’s meals are the top menu trends for 2011 (National Restaurant Association reveals hottest menu trends in 2011, 2010). Chipotle is at the forefront of these trends with their “Food with Integrity” philosophy (Form 10-K Chipotle Mexican Grill, Inc., 2011). The pork served at their restaurants is naturally raised, 80% of the restaurants serve naturally raised beef, and 86% of the restaurants serve naturally raised chickens.
3.0 Environmental Factors
3.1 Political-Legal New immigration laws may have an adverse impact to Chipotle. These may lead to additional costs to ensure compliance. Additional impacts include reduction in available workforce and risks in future audits of current employees (Form 10-K
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