Project on Chipotle and Red Robin

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 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.

Accounts Receivable, Other Receivables, Allowance for Doubtful Accounts, Bad Debt ExpenseInventories and Reserve for Inventory Obsolescence

It turns out even Chipotle isn’t perfect. Seventeen Chipotle locations in Minnesota have been linked to a recent salmonella outbreak and are currently under investigation by the state’s health officials.

Have you ever tried the best tasting fast food Mexican restaurant on the market? It is called Chipotle. Chipotles restaurant has great service and many excellent choices.

The food industry is always going to have some sort of problem. Not a restaurant known to mankind, has never had no problems at all. People over shot the entire ordeal with and around the Chipotle in Simi Valley. However, I am sympathetic for the ones whom may have gotten sick from the meats or whatever may have caused it.

Here are two restaurants that may make you become hungry when they come to mind. One, Chipotle which some of you may know for their humongous burritos and classy, cozy wooden tables. The other, Del Taco where their tacos are extremely crunchy and have convenient hours. Some people may believe that since Chipotle and Del Taco are both Tex-Mex restaurants that they are similar but based on their menus, environment, and prices one can tell how they differ from one another.

Chipotle seeks to emphasize the importance of its corporate social responsibility and Environmental Sustainability. Before the breakout of the E. Coli bacteria in Chipotle restaurants, one may argue that Chipotle had great corporate social responsibility and environmental sustainability. Although I agree with this, the E. Coli outbreak showed that there were still many opportunities and areas where there was much needed improvement. To show an increase in corporate social responsibility, Chipotle increased its internal measures in safety and food regulation. Chipotle ran multiple tests that showed that more than 2,500 Chipotle restaurants had no trace of the E. Coli virus.

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).

The fast food, or quick service restaurant industry (QSR), represents approximately 200,000 restaurants and $155 billion in sales in the U.S. alone, they are one of the largest segments of the food industry (Hoovers, 2011). This segment of the restaurant industry is “highly competitive and fragmented… number, size and strength of competitors vary by region, market and even restaurant. All of these restaurants compete based on a number of factors, including taste, quality, speed of service, price and value, name recognition, restaurant location, customer service and the ambience and condition of each restaurant” (Chipotle, 2010).

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.

Chipotle has recently approved the project for a new product expansion. The products that will be now offered will be red chile and green chile. This project was approved for many reasons. The project will help boost Chipotle’s sales overall. It will also add more menu items to Chipotle’s current offerings. Chipotle can capitalize and eventually also add more locations pending project success. There are so many more benefits from product expansion than risk. This definitely makes the project more feasible. I am confident that this new product expansion will bring favorable results. It will result as the stepping stone to more successful product launches.

Steve Ells is the founder and CEO of Chipotle. Steve is a trained chef and opened his first Chipotle store in 1993 at a former Dolly Madison ice cream store in Denver, Colorado. His goal was to serve high quality, delicious food quickly and in a “fast-casual” setting (Ells).

11. Accounts receivable turnover and days sales in accounts receivable for the last three years:

Support: The Company’s revenues increased considerably (19%). However, the Accounts receivables also increased significantly (38%). Increase in revenues are generally associated with a proportional increase in the allowance for doubtful debts. By not reporting a significant ‘allowable for bad debt accounts’, the company is able to overstate its profits and could be a cause for concern in the long run, if the receivables turn out to be bad.