2. HistoryChipotle
✦ 1993 First Chipotle opened at a former Dolly Madison ice
cream location.
✦ 1996 Opened 5 more Denver area restaurants.
✦ 1998 Chipotle in outside investors.
✦ 1999 Chipotle opens Restaurants outside of Colorado.
✦ 1999 Steve Ells learns about the way pork is raised in US
and decides to do things differently.
✦ 2006 Chipotle goes public in New York Stock Exchange.
✦ 2009 Steve Ells testifies before congress to try to change
the use of antibiotics in ranching.
✦ 20?? Stay tuned to see whats next!
Market
✦ Chipotle has 1,316 locations in US, Canada, England, and
France with 30,940 employees.
✦ Chipotle saw a marketing opportunity in the mainstreaming
of issues surrounding sustainability, animal welfare and,
where food came from
✦ The chain had to first market the negative impacts of
factory farming
✦ Most other QSR are not concerned with the issues of
factory farming which opens up a market for Chipotle
✦ Chipotle’s philanthropic efforts have been locally focused,
supporting local farmers markets, school programs, and
community group. With the Cultivate Foundation, the chain
set out to do larger-scale philanthropy, all focused on
educating the public about the problems of factory farming
and offering grants to farmers and others involved in
developing solutions.
13%
27%
29%
31%
Consumer Geographical Region
North East
South
Midwest
West
Thursday, May 30, 13
3. Distribution channel:Cable TV
✦ FUEL TV has the highest score with an
index of 175. which means people who
watch programming on this channel are
75% more likely to eat Chipotle than the
average person.
✦ Reelz Channel had the lowest score with
an index of 41, which means people who
watch programming on this channel are
59% less likely to purchase food from
chipotle. This is probably because Reelz
Channel is not a very popular cable
channel.
✦ Many of the channels that resulted in
higher expectations of eating at Chipotle
have a common facto that they generally
use more sports, comedy, and fashion in
their programming meaning these types of
channels appeal more to Chipotle eaters.
0 45 90 135 180
175
114
125
161
136
122
154
126
FUEL TV
Comedy Central
Bravo
Palladia HD
Style
NBA TV
FSC
E!
Fall 2011 Cable TV
Index
Thursday, May 30, 13
4. Distribution Channel: Internet
✦ Groupon.com was the most effective way
to advertise Chipotle.
✦ Most of these websites have ratings or
reviews on them which is why some
viewers may have visited the site.
✦ Groupon scored the highest with an index
of 254, which means people who visited
Groupon.com were 154% more likely to eat
from Chipotle than the average person.
Groupon is a coupon based website which
is main reason it scored higher, because in
an economy like ours who doesn't like
coupons?
✦ FarmVille.com had the lowest index score
of only 42, which means people who visit
FarmVille.com are 58% less likely to
purchase food from Chipotle. FarmVille is a
game which can be found on Facebook
also.
0 75 150 225 300
254
247
206
244
200
42
133
Groupon.com
IMBd.com
Moviefone.com
Tripadvisor.com
wsj.com
FarmVille.com
WhitePages.com
Index
Fall 2011 Internet
Thursday, May 30, 13
5. Distribution Channel: Magazines
✦ The Highest scoring index was 311 for the
Washington Post. The Western
Geographical region of the US also had
the most consumers, since Washington is
on the western side of the US could be
the reason the Washington Post had the
highest index
✦ Since Chipotle is a health conscious QSR is
why there are more health conscious
magazines with high index levels like
Runner’s World with an index of 228.
People who read Runner’s World are 128%
more likely to eat at Chipotle.
0 100 200 300 400
311
228
229
206
231
251
Washington Post
Runner’s World
Psychology Today
Marie Claire
Macworld
Chicago Tribune
Index
Fall 2011 Magazines
Thursday, May 30, 13
6. Primary Target✦ According to MRI+ people who are post graduates had
an index of 167, which means they are 67% more likely
to eat at Chipotle.
✦ Between Gender and age, men 18-34 scored the
highest with an index of 160, which means they are
60% more like to purchase food from Chipotle.
✦ People who eat at chipotle tend to have a higher
income, Households that make $150,000+ were 80%
more likely to eat at Chipotle. The targeted market for
chipotle seems to be consumers who can afford it as
well as, males who have attended college.
Total
‘000
Proj
‘000
Pct
Across
Pct
Down Index
Total
‘000
Proj
‘000
Pct
Across
Pct
Down Index
MRI+
MRI+
Thursday, May 30, 13
7. Chipotle VS Competitors
✦ Chipotles Highest target was those who
are post graduates with an index of 167. It
performed more successful than the
others in its category by far.
✦ Panda Express scored the best with
college graduates and their index was 130,
which means college graduates are 30%
more likely to eat at Panda Express
✦ Taco Bell tends to be the most successful
with people who have attended college
with an index of 115.
0 50 100 150 200
Grad. college plus
Attended college
Grad. HS
Didn’t grad. HS
Post Grad.
No college
Chipotle Taco Bell Panda Express
Educational Level
Consumer Educational Level
Thursday, May 30, 13
8. Chipotle VS Competitors
✦ Chipotle tends to target the younger
demographic, ages 18-24 they are 58%
more likely to purchase food from
Chipotle.
✦ Taco bell seems to have the same
targeting range with scoring the best in
ages 18-24 and 25-34.
✦ Panda express also scored the best in the
18-24 age group. All three companies start
to decline the older the age group.
0 50 100 150 200
18-24
25-34
35-44
45-54
55-64
65+
Chipotle Taco Bell Panda Express
AgeLevel
Consumer age group
Thursday, May 30, 13
9. Chipotle VS Competitors
✦ Although Chipotle target the
west, they are not as successful
and Panda Express in that
area. However, Chipotle does
capture the North East better
than Panda Express
✦ Taco Bell is consistent in the
West, Midwest, and South, but
falls short in the North East.
✦ Besides Panda Express having a
higher index level in the West,
Chipotle dominates in all other
areas.
0 75 150 225 300
North East
West
Midwest
South
Chipotle Taco Bell Panda Express
Consumer
Geographic
Region
Thursday, May 30, 13
10. SWOT
Analysis
SWOT Analysis
Strengths Weaknesses
Opportunities Threats
✦ Chipotle is innovative
✦ Chipotle as a strong management team
✦ They have high-profile locations
✦ Community involvement
✦ Food made in front of customers
✦ Online ordering
✦ Quality food
✦ Great quality food
✦ No franchise option
✦ Availability of brand specific sourced
food
✦ Limited menu
✦ Limited locations
✦ Limited advertisements/word of mouth
advertising
✦ Entering new markets
✦ Expanding in the US
✦ People are more health-
conscious now
✦ Offer new food
✦ Long-term trend of specialty food chains
✦ Competition is a threat
because Taco Bell is the
leader in Mexican fast
food category
✦ Economic slowdown and less disposable
income
✦ Lower cost competitors
✦ Regulation on illegal workers
✦ Other fast food restaurants offer
healthy food choices
Thursday, May 30, 13
