Chipotle Case

Chipotle Case
Case 5–> Chipotle: The Challenges of Integrity External Assessment a) General Environment
Due to the fact that Chipotle is worried about providing customers with the best possible ingredients
and in the same time, concerned of taking care about environment, animals as well as farmers,
which in this case, are the main suppliers, we can encapsulate Chipotle in a Sociocultural segment.
Another point that reinforces this statement is related to their employees and the way they benefit
them in many different ways because from the beginning, they become part of Chipotle by a trainee
program and after that if they show that their store is running in a very positive way, they will
promote making possible going up the ladder. They ... Show more content on Helpwriting.net ...
* Rivalry among existing competitors (high) The main competitors of Chipotle include Panera
Bread, Qdoba and Pei Wei as well as regional competitors, which are providing similar services and
products and in some cases cheaper than Chipotle. * Threat of Substitute products (medium) 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. * Bargaining power of buyers
(high) Especially in the food industry, the buyers always had and always will have a very high
power because of all of the variety the market can offer. A surprising thing about Chipotle customers
is that their loyalty is based on how the food taste but as I mention before, consumers in generally
want to change their food habit regularly, so it is not normal in this industry that a person eats more
than three times a week in the same restaurant, that is why buyers here with
... Get more on HelpWriting.net ...

Chipotle
Prepared for:
Chipotle
Submitted By:
December 14, 2011 I. Introduction to Chipotle
Introduction
Chipotle Mexican Grill is a leading force in its commitment to buy food from sustainable sources
that do not have a negative impact on its menu pricing. Besides leading the way in the fast casual
dining experience, it also supports farming initiatives that develop and practice best standards.
Chipotle is also active in its environmental commitment to working to reduce its carbon footprint by
reducing its reliance on fossil fuels through the implementation of various environmental initiatives,
including green building and depending on solar power energy. It is also well known for its
philanthropic activities, including its ... Show more content on Helpwriting.net ...
Chipotle has continued to grow, today has 1,100 locations in 39 states, Toronto and Ontario, Canada,
and London, England; its net income in 2010 was $178 million, and it has a staff of 26,500
employees (2010 Form 10–K, Chipotle). II. Identification of the Industry and Competitors
Industry Definition and Competitors
Chipotle Mexican Grill (NYSE: CMG) is a quick–service and casual Mexican–inspired restaurant
chain based out of Denver, Colorado. The company takes pride in doing a few things exceptionally
well: To serve high quality and delicious food quickly with an experience that not only exceeded,
but redefined the fast food experience. Chipotle focuses on sourcing the best possible ingredients,
serving the tastiest food, and growing the most capable team possible.
Steve Ells started Chipotle in 1993, and expanded the chain to over 400 stores within 12 years.
Chipotle is supported by the financial power and sprawling distribution network of owner
McDonald 's Corp, and is the largest Mexican–style concept among a number of fast–casual
competitors that also have been picked up by quick–service companies in recent years (Peters,
2005).
Major competitors include other Mexican fast casual locations such as Baja Fresh, Del Taco, Qdoba
Grill, and market leader Taco Bell. Additional competitors in the broader market include other fast
casual locations such as Panera Bread

Chipotle Incident Summary
This report was commissioned to examine the Chipotle E.Coli outbreak that took place in the last
quarter of 2015 and the internal crisis that ensued causing stocks to plummet and customers slow to
regain trust. This research draws attention to the managerial strategies attempted after the outbreak
to bounce back from the "Food with Integrity" broken promise. Chipotle started off strong in 1993
with its creative new take on a fast food restaurant by using fresh ingredients, which was sustainably
grown, and showed respect for the animals, land, and farmers. This aspect of Chipotle is what
helped it stand out amongst its competitors. The diligence put into preparing and catering the food to
the guests is the epitome of exceptional customer service; thus leading to an exponential rise in sales
and stock value for the company. Debatably, the root of Chipotle's issues has been leadership
challenges and teamwork mismatches. This report re–counts the events that took place after the
catastrophe and ... Show more content on Helpwriting.net ...
coli outbreak can be seen as exacerbating the problem, even though they were trying to find ways to
resolve the problem. As, as the crisis began, leadership coming from CEO Steve Ells and Co–CEO
Monty Moran portrayed repudiation. One of the first decisions made in reaction to the E. coli
outbreak was to purchase full–paid advertisements. This marketing tactic was a ploy to mask the
severity of the epidemic, soothe investors, and retain loyal customers. In addition to paper ads,
Chipotle decided to advertise using direct mail and television advertisements (Wahba, 2016). This
practice did not correlate with traditional chipotle advertising; before the outbreak, their last paid
advertisement took place in 2012. Chipotle has always operated in a fashion that let their brand, and
high–quality products speak for themselves. However, both Ells and Moran felt that the time to
promote their brand was needed more than

Chipotle Swot Analysis
Chipotle's History:
Chipotle Mexican Grill was originally opened in 1993, in Denver, Colorado. By 1996, there were
eight Chipotle serving the Denver area. Chipotle brings on outside investors in 1998, and by 1999
McDonald's became Chipotle's majority holder. The company went public in 2006 and listed under
NYSE with symbol: CME. As of Dec 2011, the company operates 1,230 restaurants in the U.S., two
in Toronto, Canada, and two in London, England. The founder and CEO, Steve Ells, started with a
philosophy known as "Food With Integrity" in 2001. This philosophy encompasses the fact that
Chipotle wants to offer food that is "sustainable sources – naturally raised meat – locally or
organically grown – and fresh" (Chipotle Mexican Grill, ... Show more content on Helpwriting.net
...
Chipotle's wages are higher than industry competitor. According to averages from job–
application.com, cashier's wages for fast food industry averages $7.25 – $8.50 while Chipotle's
average wage is $8 – $10. Part of this higher labor costs was because Chipotle is facing obstacles to
hiring and training qualified personnel in local market. As highlighted in the annual 2011, "Our
business could be adversely affected by increased labor costs or difficulties in finding the right
employees for our restaurants." "Food With Integrity" mission statement at risk. As identified in the
2011 annual report, organic and natural foods take a much longer time to grow and it also take much
longer time to qualify suppliers. Due to the weak economic environment, many large suppliers do
not see the benefit in sustainable farming practices thus was forced to revert to the traditional
practices. To meet the demand of Chipotle's expansion, a few of Chipotle's markets reverted back to
serving the conventionally raise beef in early 2012. This can potentially make Chipotle to become
less popular among its customer and sales could decline as a result. Expanding into markets with a
diversified tastes and unfamiliar local market. Chipotle expansion to London and Paris may
encounter difficulties as culture, taste preference, spending habits and lack of qualified suppliers for
Chipotle's high quality food standards could adversely impact the newly open

Essay on Chipotle Balanced Scorecard
Chipotle The Chipotle Mexican Grille opened its first store in 1993 beginning a new category in the
restaurant industry known as "fast casual" (About Us, 2014). This new category featured the
"highest quality raw ingredients, classic cooking methods, and distinctive interior design–features
that are more frequently found in the world of fine dining." However, aside from the normally long
wait in lines, an order could be taken and served in only a couple minutes. Currently Chipotle
operates more than 1,500 restaurants internationally. The following pages will present a balanced
approach to the effectiveness of Chipotle's strategy analyzing financial performance, customer
satisfaction, employee/learning and growth, and internal process. ... Show more content on
Helpwriting.net ...
Operations To date all restaurants are company–owned and not franchised. Restaurants cover forty–
three states in the U.S., Canada, England, and France. The only variation to the original model has
been an increased environmental awareness and a "Test Restaurant" in Washington D.C. that serves
Asian–Style fast casual food. Strategy Reading through the annual reports Chipotle's strategy is
comprised of four components: 1. To increase consumer awareness with regards to the importance
and benefits of consuming naturally–raised produce. 2. To vigorously seek out expansion into the
European markets. 3. To continue to grow and foster new relationships with food suppliers. 4. To
continue incurring only minimal amounts of expenses relating to marketing and other advertising
expenses. Financial Analysis Fast food is known for low quality and low prices. Alternatively, the
dine–in experience offers high quality with a higher price. Some restaurants seek a low–cost dine in
experience but this is done with a deteriorated food quality. Therefore, it would make sense that
Chipotle's philosophy of high quality has a hard time maintaining a low price. Chipotle makes this
work by charging slightly higher prices than fast food. Customers are willing to pay this because of
the differentiations Chipotle offers but how does this translate overall financially? One key aspect
for Chipotle is their ability to cover debt. They maintain very liquid assets to cover the costs of

The Millennial Crisis : Love / Hate With Chipotle E Coli
The Millennial Crisis: Love/hate with Chipotle e Coli.
Crisis
Chipotles reputation and product were nothing short of stellar. Attracting customers from all walks
of life but primarily from the millennial generation. The millennial generation tends to like simple,
fresh food without artificial flavors or fillers from environmentally friendly restaurants. Chipotle in
turns targets the millennial generation as one of their main stakeholders. For a time, the symbiotic
relationship between Chipotle and the millennials thrived. The relationship almost proved to break
Chipotle when a crisis of a massive Escherichia Coli (e. Coli) infection breakout occurred affecting
the millennial generation the most. A drop–in Chipotles comparative sales has ... Show more content
on Helpwriting.net ...
Infected ranged in age from 6 to 25 years, with an average age of 22.
80% infected were female.
1 (20%) infected were hospitalized.
e. Coli Symptoms
Infected get sick from 2–8 days (average of 3–4 days) after swallowing the organism (germ).
Infected develop diarrhea (often bloody) and abdominal cramps.
Most infected recover within a week.
Prevention
Chipotle followed standard food and service regulations by the state the restaurant was located. It
did not take any additional preventative steps prior to the outbreak of e. Coli. Chipotle did, however,
change several of its cleaning and food preparation practices in all restaurants. The cleaning changes
included added cleaning and sanitation and testing of ingredients at the distribution center.
Ingredient changes included dipping onions in boiling water, marinating the raw chicken in re–
sealable bags, testing steak every 2,000 pounds and centralizing the preparation of the ingredients in
order to be tested.
Could this crisis have been predicted and prevented, YES. There are standard preparation practices
clearly not followed by Chipotle. Additionally, in the companies zeal to have organic and fresh
ingredients they didn't identify any potential risks associated with these types of ingredients, namely
the lack of treatment for this bacterium at the source like other ingredients would have been.
Damage containment
Chipotle closed 43 restaurants in

Essay on Industry Analysis Chipotle
Industry Analysis
Overview of the Quick Service Industry
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).
The QSR industry is seeing growth due to the fact ... Show more content on Helpwriting.net ...
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).
Due to economic downturn the strength of the buyers' power has increased as the industry looks to
gain consumers with pricing strategies much like those of McDonald's "Value Menu" and
combination meals even though the cost of commodities have gone up (James, 2010). Customers of
QSRs are looking for quality food without high costs. While Chipotle does not have a value menu or
offer any type of combination meal much of their success is due to the fact that the customers are
willing to pay a higher cost for higher–quality (Chipotle, 2010).
Power of Suppliers:
While

Chipotle Executive Summary
Executive Summary
Chipotle is a dynamic and advanced fast food restaurant in the US. To this end, Steve Ells found it
on July 13, 1993. At the beginning, the Mexican fast food architect (Steve Ells) had no illustrious
ambitions for his scheme. Therefore, he endeavors in founding Chipotle in order to use the benefit
for another restaurant dream (www.huffingtonpost.com). Nevertheless, the restaurant foundation is
an achievement, and is broadly identified by its bulky burritos composed of natural ingredients and
its effective assembly line serving style.
Chipotle's menu includes salads with chips, soft shell tacos, burritos bowls, and burritos. It uses top
and ascendancy ingredients to cook in its emergent suburban and urban restaurants. While fast food
restaurants rely on advertisements to uphold their menu, by contrast Chipotle concentrates on the
firm selection of ingredients. That certainty changes ... Show more content on Helpwriting.net ...
This course of action aims to adopt homemade green cuisine to its eateries menu. The promotion
beguiles customers and links them emotionally to the chain's green and sustainable food. In
addition, Chipotle constructs a pleasurable consumer website by means of social media to support
its new–fangled approach for new customers' attraction.
2– RETAIN EXISTING CUSTOMERS
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.
3– BRANDING

Chipotle Research Paper
Chipotle was founded by Steve Ells in July of 1993 and in 1998 Mcdonalds was a major investor
but, in 2006 they withdrew from Chipotle. Chipotle is one of the most famous fast food restaurants
is the Unites States. In 2016 there was 2,250 restaurants in the U.S. alone. It is a nice, fast, and easy
way to get dinner or lunch for you and your family. That's why Chipotle is one of my favorite places
to eat. The closest Chipotle to me is 9815 Main Street, Damascus MD which is half a mile away
from where I live. Since it's close to the grocery store you can pick up some dinner after buying
your groceries. It's in walking distance from the pet hospital so when your pet is there for an
appointment you can get something to eat while you wait. If you wanted a cold dessert afterwards
you can go right next door and get Tutti Frutti. ... Show more content on Helpwriting.net ...
The first step is deciding what you want a burrito, bowl, taco, salad, or a cheese quesadilla.
Afterwards you pick if you want white rice or brown rice. Than you pick the filling, chicken, steak,
carnitas, barbacoa, sofrita, or veggies. Finally, you pick the toppings like, black beans, pinto beans,
queso, guacamole, fresh tomato salsa, roasted chili–corn salsa, tomatillo–green chili salsa,
tomatillo– red chili salsa, sour cream, fajita veggies, cheese, and lastly romaine lettuce. Since it take
awhile to pick what you want and for the staff to make your order there are sometimes long

Chipotle Supply And Demand
Whenever the term economics come up the two terms that seem to be put together are supply and
demand. Supply and demand is the amount of a commodity, product, or service available and the
desire of buyers for it considered as factors for regulating its price. This concept is important,
because without it producers don 't know how much of their product to make and what to price it at.
Chipotle a Mexican grill is an establishment that has been open since 1933. This was a small
business until McDonalds became an investor in their company in 1998 and their was no looking
back from then. Their expansion was rapid leaving more room for mistakes. This Mexican grill was
quite popular until it had a fall out with a contaminate in their meat in December of 2015. The
contaminate that was found was E.coli. E.coli is a powerful contaminate and has the power to kill
someone. Chipotle had several outbreaks where their meat was contaminated and as a result that
caused customers to not want to go their in fear of being contaminated. The supply was their, but the
demand for the food quickly plummeted causing the company to lose lots of profit. As a result the
company has been spending millions to try and regain their customers. Supply and demand is a
concept that is very important for the development of any company; to maximize sales you must
have plenty of both with supply having enough product to sell, and demand being the customer base
that has been built.
E. Coli is a serious contaminate

International Strategy Of Chipotle
Chipotle Mexican Grill is an American restaurant chain that currently has more than 1700 locations,
with most of its locations in the U.S. and several in Canada and Europe. Chipotle has been gradually
expanding its international presence since it opened its first location outside the U.S., in Toronto in
2008 (International Strategy, 2015). The restaurant now has 17 locations outside of the U.S.
including locations in London, Paris, and Frankfurt. However, like all other international
corporations, Chipotle strives to grow its business even further and extend global awareness of its
brand. The next step in Chipotle's global strategic plan would be to venture into new waters and
enter Asia. Hence, Chipotle is now analyzing the decision of expanding operations into China.
Chipotle is a fast casual dining establishment that serves Mexican cuisine, specializing in burritos
and tacos. Like other fast casual restaurants, it does not offer full table service, but promises a higher
quality of food with fewer frozen or processed ingredients than fast food restaurants. In fact,
Chipotle is widely known for its mission to only use organic ingredients and ... Show more content
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,

Chipotle Weaknesses
Chipotle Strategic Analysis
Jeffrey D. Payne
BUS 560 Leadership Capstone
Adams State University
July 12, 2015
The leadership at Chipotle Mexican Grill, Inc. has revolutionized the fast food industry and continue
to provide health options to their customers through ethicial business practices. The company is
currently going to market with the organization promotion of "Food with Integrity", following the
ideology that better food comes from better farming. This analysis of the organization will address
the current leadership issues through the detail of the many different tools. Also defining leadership,
and how the leadership of Chipotle is their competivie advantage and is propelling this company to
becoming a industry leader. ... Show more content on Helpwriting.net ...
There are very few options besides burritos, tacos and salads on their menu, while other fast food
restaurants have more variety. The competition have many options; including different hot meals,
specialty gourmet meals and signature fresh cooked options that Chipotle cannot not offer.
Limited Locations – Because of the standards that Chipotle has set on themselves they cannot open
location anywhere, they must have the business and the infrastructure in place to grow the locations
profitability. Most of the competition doesn't have the same restrictions on setting up new locations,
as we've seen the many McDonalds locations across the country.
Limited advertisements – Chipotle doesn't believe they need to be dependent on advertising, and
they focus more on word of mouth. They utilize an in–house agency, rather than hiring an outside
agency, which they have tried again and again. Chipotle executed an advertising campaign where
they poked fun at advertising agencies saying that the ad agencies said to show a burrito in the ad,
but they thought it was better to show where they came from or that the ingredients deserve the
spotlight. They did this through print, radio, and online but did not use TV ads or

Financial Analysis: Chipotle
Table of Contents:
Company Background *3*
Industry Analysis *4*
Ratio Analysis *5–8*
Ratio Summary *8*
Recommendations *9*
References *10*
Company Background
Chipotle Mexican Grill was a concept turned reality by a gentleman by the name of Steve Ells.
Chipotle Mexican Grill provides excellent Mexican cuisine driven by a concept of "Food with
Integrity". The first chipotle Mexican grill was opened in 1993 in Denver Colorado. By the end of
1995 there were three. In 1996 alone, Steve Ells opened five more Denver–area restaurants growing
by a total of eight stores in three years. By 1998 Chipotle Mexican Grill was showing much
promise. In order to meet their growth needs Chipotle took on outside investors. ... Show more
content on Helpwriting.net ...
Foods has a current ratio of .75, which means that they can't even cover their current liabilities once.
The industry average is 1.0. This should be a red flag for Yum! Foods. Overall, Chipotle has a better
than average liquidity position while Yum! Foods is below average.
Quick Ratio: The quick ratio is calculated as current assets minus inventories divided by current
liabilities.
Quick Ratio = Current Assets – Inventory / Current Liabilities
Chipotle: (666,307–13,044)/199,228= 3.28
Yum! Foods: (1,691,000–294,000)/2,265,000= .62
Chipotle's quick ratio is 3.28, slightly lower than its current ratio. Yum! Foods quick ratio is .62,
which is also slightly lower than their current ratio. Both ratios are acceptable as long as A/R is not
expected to slow. Chipotle appears to be a significantly stronger company than Yum! Foods. The
industry average is not given.
Days Sales Outstanding: The days sales outstanding (DSO) measures the average number of days it
takes a company to collect on its debts after a sale is made.
DSO = AR/ (Annual Sales/365) Chipotle: 3,214,591/365= 8,807.10, 40,885/8,807.10 = 4.64 DSO
Yum! Foods: 13,084,000/365= 35,846.56, 442,000/35,846.56= 12.33 DSO
Chipotle's days sales outstanding is 4.64 while Yum! Foods is 12.33. This indicates that Yum! Foods
takes an average of 7 days longer to collect the money owed from customers than Chipotle. Both

companies come in with a good showing that iswell below the industry average of 98.2.
Fixed

Strengths And Strengths Of Chipotle
Strengths Strength 1: Largest Restaurant Chain in Market Segment, with highest share Chipotle has
the largest share of the fast casual marketing segment in the Unites States. Chipotle has over 1,400
locations and plans to open an additional 140 locations this year. By holding the largest share of the
market, Chipotle is able to trial, expand, and experiment with new ideas in certain geographic
locations. Chipotle is able to trial new menu items and not have it affect the bottom line, and in
addition, they are able to gather an incredible amount of information regarding customer data. This
data will allow Chipotle to understand the different demographics of its customers in the trial
locations. With its 1,400 locations in many locations provides Chipotle with the strength to trial new
ideas. Strength 2: Quality of Meats, Vegetables, and ingredients "Food with Integrity" Customers in
today's entire restaurant segments want to know not only the nutritional values of their food, but also
how it was raised. Chipotle uses only free range animals for their meats and organic farms for their
vegetables. This differentiates them from other restaurants that have special meals (at a higher price)
that call out "prime" or "certified". This differentiation allows Chipotle to maintain a simple menu of
high quality meats and vegetables while using fine ingredients for customers that desire quality food
in a timely manner. Customers who desire, want, or need high quality food have all of

Swot Analysis Of Chipotle
This shows the customers that chipotle really does care that they are putting a ton of effort into
having the best ingredients. They call this idea "Food with Integrity". Chipotles founder, Steve Ells,
has been fully committed to this mission since the beginning and this really resonates with the
customers, which has continuously brought them back. They have used phrases like "no microwaves
here", to drive the concept home and show that they are sticking to the fresh quality of their
ingredients. Another factor that has been successful for chipotle is that they have maintained an
Elegant Simplicity environment for their restaurants. Many successful fast food or casual restaurants
have used this style to create their establishment. ... Show more content on Helpwriting.net ...
Chipotle managers need to be aware of their employees wellness. If an employee is sick they should
have to tell their managers and either leave for the day or take safety precautions. It is not clean for
sick employees to be touching other people's food or the utensils it takes to make the food. It can be
helpful for managers to schedule weekly meetings to make sure employees are aware of regulations
and safety precautions. Some areas that could use improvement in this particular store may be better
trained employees that will help to reduce the number of wasted burritos that get thrown away every
day, saving on costs. Employees are also not aware of costs when they make a mistake and have to
start over with a meal or preparation of

Executive Summary
The restaurant industry in the United States had annual sales of $ 631.8 billion and employs 12.9
million people in 2012. Even in times of recession there is little evidence that this industry has seen
a decline especially in its fast food and quick service segment. But with a depressed economy with
no immediate upward trend in the near future, majority of the customers indicated that they would
either curtail their spending on eating or best maintain its current level which is certainly going to
affect the future of many restaurants in the industry. Chipotle is part of the fast casual segment of the
U.S industry with over 1,600 restaurants.
As Chipotle expanded its business over the years, it has tried to position itself ... Show more content
Chipotle Competes with meals prepared at home as well as frozen or packaged food items available
in supermarkets
–People reduce eating out spending economics recession and this might affect Chipotle
–Competitor's pricing strategy – competitors such as Taco Bell are offering similar products with
reduced prices to compete for Chipotle's market share
Situational Analysis for Chipotle
Alternatives Pros Cons
1. Differentiation Strategy by " Food with Integrity" ( current Strategy) – Food with integrity
– Unique style of serving
– Loyalty and word of mouth marketing – Rising food prices
– need for more produce as raw material

Chipotle Food With Integrity
"Food with Integrity". That is the mission statement of the recently popularized Mexican style fast
food restaurant, known as Chipotle. What does food with integrity actually mean? According to the
Chipotle website, the company is committed to providing the freshest ingredients. Which translates
into purchasing organic produce, dairy without added hormones, and naturally raised meats. This
philosophy has added to the company's competitive value. When consumers come to dine at a
Chipotle establishment, they are treated to an ethnic "fast–casual" style of eating. Compared to its
competitors, Chipotle restaurants cook all their meals by hand and nothing comes pre–packaged.
The reason for this is the CEO and founder, Steve Ells, comes from a culinary background, which
eventually trickled down to how he believed food should be prepared in a ... Show more content on
Helpwriting.net ...
As mentioned before Chipotle's biggest strength is their quality ingredients. But in order for a
customer to eat someone must prepare that food. Chipotle employees have extensive room for
growth within the company. They also have quite a few days off throughout the year, since Chipotle
is closed during major holidays, compared to other fast food restaurants that remain open. Some
other perks include, salaries for managers, who typically are paid hourly in other restaurants. There
are also healthcare benefits and stock purchase programs for both salary and hourly employees. To
top it all off, Chipotle encourages their employees to receive higher education, so they offer tuition
reimbursement. All these perks lead to happier employees, which translates to better customer
service, which means more profit. Some other strengths include, a strong international presence in
the US, UK, Canada, and France, online ordering and occasionally delivery to customers, and all
restaurants are owned by the company and not

Swot Analysis Of Chipotle
Chipotle
Chipotle Introduction
Chipotle Mexican Grill is a company with a lot of fast food restaurants in the United States and
Canada that specializes in burritos, tacos and bowls. Steve Ells founded the company in 1993 in
Denver, Colorado. Chipotle is well known for its big burritos and its use of natural ingredients.
Their mission statement is "Food with integrity". They use this statement in an effort to show and
lure people that they use organic ingredients. The company statement means that they serve the very
best sustainably raised food possible with an eye to great taste, great nutrition and great value.
Chipotle has been trying to set themselves apart from the fast food industry with the quality of their
food. They try their best to offer organic food because the customers of their industry are shifting
towards environmental harm free and organic foods. In their industry, companies compete on a
number of different levels that include the menu, the service and the prices they charge their
customers. The main competitors for chipotle are Qdoba which offer mainly the same services and
menu like Chipotle, taco bell, Moes and Taco bell. The company has a very good management that
have kept the company on its feet even after pandemic issues that had to do with health. To this date,
Chipotle has more than 1000 restaurants running in three countries. The company has become a
huge success that has also caught the attention of its competitors.
Chipotle stages of decline.

Chipotle Case Study
Chipotle is classified as a fast–casual food restaurant. Chipotle is one of the most popular fast–
casual food restaurants and is growing in popularity more and more daily. Chipotle has achieved
popularity by; having a small menu, requiring quality staff, using fresh produce, using non–GMO
meats, and not allowing franchises. "One of the keys to Chipotle's success is its small menu. A
smaller menu has three benefits. First, since Chipotle only stock fresh ingredients, there is always a
chance of food spoilage. The small menu reduces the number of ingredients needed on–hand, thus
reducing the likelihood of waste. Second, small menus mean quick service. At other fast food
restaurants, the kitchen can get overwhelmed by the orders and can make mistakes. At Chipotle,
mistakes are ... Show more content on Helpwriting.net ...
If the employee forgets to add beans, the consumer is watching and can point out the omission. It's
easy and fast and consumers love it. Finally, a small menu also means that customers know exactly
what's for sale each time they visit the restaurant. Chipotle doesn't need to develop new products or
create flashy advertisements to let consumers know its offerings, and consumers aren't disappointed
by the disappearance of a product after a trial or promotion period"(Page, n.d).
When a company or person is doing well, there will be people who intend to copycat to get a little
piece of the profits. It is very likely that the challenges facing Chipotle would drive consumers away
from its menu to copycats offering other food types. According to Nicholas Fernandez, there are 5
fast–casual restaurants that could

Chipotle Case Study
The company itself is considered as a breakthrough innovation in the American fast food market.
Initially CMG was set to challenge fast food traditional trend and in the end it launched a new
industry, and became the top player among the fast food chains (LINK1). Chipotle invented a way to
sustain the speed, experience and convenience of standard fast food restaurant but provide a far
better quality of the food. Unlike the common perception of fast food industry with reduced "penny–
pinching" prices and expanded menus, CMG went opposite direction by providing higher quality
foods through the different value equation. Even though the meals are more expensive in
comparison with majority of fast food competitor's offerings, Chipotle still manages

Chipotle Case Analysis
Introduction Chipotle opened its first store in 1993, at 1644 East Evans Avenue in Denver Colorado
("Chipotle Story", 2011; "Our Company", 2016). The founder/CEO Steve Ells borrowed $75,000
from his father to helped in opened the restaurant and he calculated that to break even we would
have to sell at least 114 burritos a day (Stock & Wong, 2015). Over the first few days, since it
opened, chipotle made more money than Ells had anticipated and he started to think about opening
another restaurant in Denver. Ells father and mother help him raised another $1.3 million from
family and friends to help Chipotle grew in 1996. From 1996 through 1998, Ells and his father were
trying to get buy–ins from investors with a deep pocket so that they can ... Show more content on
Helpwriting.net ...
coli outbreak itself on November 20th, 2015. It begins with the announcement that the Center for
Disease Control and Prevention (CDC) had reduced the number of E. coli incident from 50 cases to
37 cases. The CDC told Chipotle that there were six new cases that match with the E. coli strain that
was found in the Oregon and Washington restaurant. Chipotle wrote, "although one of the
individuals has no known link to Chipotle, five individuals did report eating at Chipotle, including
two in Turlock California, one in Akron, Ohio, one in Amherst, NY, and one in Burnsville,
Minnesota" (Arnold, 2015c). Chipotle also pointed out that since their new food safety procedure
was implemented, there are no new cases in Oregon and Washington. The press release also pointed
out the different steps that they have been doing to help decreases the number of incidents from
reoccurring. Also towards the bottom of the press release was a quote from Steve Ells himself, "We
offer our sincerest apologies to those who have been affected" (Arnold, 2015c). The press release
ended by explaining that there are about 48 million food–related illness in the US and about 265,000
of those cases are related to E.

Purchasing system:
Chipotle's mission is to change the way people think about fast food, and to deliver "Food with
integrity", which has become the company's moto. In order to support this commitment, in early
2013, Chipotle started implementing a whole chain traceability and transparency program that is
unprecedented in depth and breadth. To mount the ambitious project to achieve whole supply chain
traceability, Chipotle is partnering with FoodLogiQ, a GS1 US Solution Partner, offering software
solutions that enable companies to proactively track and manage data inside and outside their
organizations, leveraging the use of GS1 Standards with its cloud–based approach. This program is
going to incorporate several activities which to ensure the relationship with suppliers, and the
unaffected flow of food, and raw ingredients. The main objectives of the traceability program are:
– Identifying all locations and products in the supply chain.
– Linking compliance and safety documents.
– Tracking ingredients by GTIN & Lot from farm to store.
– Capturing sustainability methods ... Show more content on Helpwriting.net ...
Then the headquarter office provides the suppliers contact information to the restaurants which can
be served by this supplier. The purchasing system is decentralized on the individual unit level– each
restaurants makes its order when necessary. However on the corporate level it is centralized, in the
sense that whenever an order is made a signal is send to the headquarters, and they know what, in
what amount, and from which supplier has been ordered. The fact that each restaurant makes its
orders doesn't affect the price. Chipotle doesn't need to make huge orders in bulk in order to achieve
economies of scale, as the company has very good relationship with its suppliers, and they
understand the nature of the

Chipotle Mexican Grill Essay
Abstract
This study is an overview of the similarities and differences, advantages and drawbacks of how two
food companies, Chipotle Mexican Grill and Jack in the Box handled the crisis effects of an e. Coli
outbreak on both business and brand identity. This study will comparatively analyze each company's
leadership initiatives, management styles, and business practices when faced with a direct business
crisis. Presenting a discussion on the overall strategy, perception of events and methods used to
handle a crisis. An examination of any support mechanisms, procedures or policies to cope with
inherent danger or opportunity in an emergency situation. A before and after look, at both company's
core values, mission, reputation and the impact of lessons learned with the maturation of the
business through crisis situations.
In business, a company's primary objective is the maximization of profit by making strategic
business decisions altering market conditions and behavior while at the same time increasing and
protecting outcomes. The ability to make production decisions, knowing what to, how to, how much
and for whom to produce a product, good or service are key elements of a company's growth. In
1993, Steve Ells, a young, ambitious sous chef with dreams of opening up a fine dining restaurant,
epitomized that concept by investing 85,000 dollars of his parent's money and founding Chipotle
Mexican Grill, Inc. A small fledging burrito stand located in the heart of Denver,

Chipotle Mexican Grill Essay
Chipotle Mexican Grill, Inc.
Iyanda S. O'Connor
American Military University
BUSN620–Strategic Management
Chipotle Mexican Grill, Inc.
In 1993, Chipotle first launched their restaurant. Their vision was to demonstrate that food could be
serve swiftly without being like another Fast food restaurant. The food is made fresh and hot from
quality raw meats, original cooking style and a simple hand–made interior design like no other.
Being that this restaurant style was so unique and they were very successful in a short amount of
time they faced challenges, failed and still tries to maintain their originality by remaining
competitive.
Success in CMG
Chipotle Mexican Grill, Inc. no doubly started off as a successful company. CEO and founder,
Steven Ells cultivated this successful company in 1993 when he opened a taqueria in Denver,
Colorado using borrowed capital from his father (Pearce & Robinson, 2015. Steven Ellis is a
graduate of the Culinary Institute of America in New York City. ... Show more content on
Helpwriting.net ...
A statement from Jeff Einhorn, who headed a hedge fund came out about a percentage of customers
most likely returning to Taco Bell that are Chipotle customers based on price and convenience
(Pearce &Robinson, 2015). This was an indicator to him that Chipotle was at risk of losing its
frequent customers. The day the statement came out stocks to a 4 percent dip. In 2015, Chipotle sale
growth fell dramatically from 19.8 percent to 2.6 percent due to its national known E. coli issues
(www.cnbc.com). Since the news of the outbreak, sales in comparison have taken a dip in the double
digits. Recently, in February of 2016, Chipotle took a day to close all stores in the U.S for a few
hours with the purpose of starting a new marketing campaign which focuses on Safety standards
(abc7ny.com). After recent, E. coli and norovirus breakouts, the strategy was necessary to win back
its customers

Chipotle Essay
The 4 Cs of the marketing environment:
Company:
Since its IPO nine years ago, Chipotle has grown its enterprise to over 1700 restaurants, 45,000
employees and an annual revenue of $4 billion which has enabled it to capture over 10% market
share (Brennan, 2014) in the Mexican food category.
Chipotle is a major player in the fast–casual segment that it helped to define years ago. The
company started as a disruptor in a mature fast food industry, competing with mainstream low–cost
rivals like Taco Bell.
Attractive financial margins entice rivals to emerge and attempt to replicate Chipotle's success by
focusing on leveraging high quality and responsibly raised ingredients. Culture is considered to be
one of Chipotle's top extraordinary resources which make it a key differentiator. Chipotle's people
culture, which ... Show more content on Helpwriting.net ...
It is now located the United States, United Kingdom, Canada, Germany and France.
Culture
Culture is considered to be one of Chipotle's top extraordinary resources which make it a key
differentiator. Chipotle's people culture, which "attracts and builds teams of high performers
empowered to achieve high standards" (Chipotle, 2015), is not easily duplicated.
Chipotle is a company with a distinctive mission, a clear strategy, and thoughtful operational
structure. The company appears to have found the recipe for success. If Chipotle's leaders continue
to make impactful decisions, Chipotle will remain a strong force in the restaurant industry for years
to come.
Chipotle's promote–from–within approach has yielded employee retention rates that are well above
the QSR industry average. The company can deploy well–trained and loyal managers for new store
openings, critical to expansion plans.
Market

Chipotle: Article Analysis
In Julie Jargon and Jesse Newman's article, "Fresh Ingredients Came Back to Haunt Chipotle," the
authors discuss how Chipotle is phasing their way out of a major decline in their company. Chipotle
is a chain currently suffering due to health safety issues, and because of this their sales have
dramatically fallen. Chipotle was once a leading company, as the article notes: "Steve Ellis built
Chipotle Mexican Grill Inc. into a restaurant–industry leader by playing offense, brashly touting
fresher and more virtuous food than competitors. His company boasted of 'food with integrity' and
ridiculed rivals for using artificial ingredients," (Jargon, Jessie B6). Chipotle once proudly stressed
utilizing fresh ingredients over artificial ones. This statement ... Show more content on
Helpwriting.net ...
Chipotle could have not foreseen the turn of events in their stores and could not have possibly
predicted the outcome. The social factor is uncontrollable and can at any moment shift an industry's
source of success. Chipotle was once widely known for serving healthy, fresh dishes to their
customers. However, when the outbreak spread from city to city, Chipotle was at serious risk. As a
result of the outbreak, people are in fear and are second guessing whether it is worth eating at
Chipotle's again. Many of Chipotle's customers did not feel safe to go back. Chipotle's impression
and reputation changed for many customers. Chipotle's spokesman, Chris Arnold, reports, "Because
we will probably never know for sure what caused this... we have taken significant measures to
improve safety," (Arnold B6). Even after the chaos, Chipotle still stands strong in the hope to revive
their business to its former glory (Jargon, Jessie B6). The chain has taken significant measures to
ensure a cleaner and safer environment for any individual that enters their doors. The cause of the
outbreak is a mystery and this uncontrollable factor has greatly affected the hearts of many. Chipotle
is pushing their way into the first stage of recovery and is stressing that their restaurant is no longer
a threat to its

Chipotle : A Unique Experience
Chipotle has many core competencies that make the restaurant have a unique experience. First, the
restaurant believes in selling quality food at reasonable prices. Unlike other fast food restaurants,
Chipotle has a commitment to "Food with Integrity" which increases the use of organically grown
local produce, organic beans, organic dairy products, and meats from animals that were raised in
accordance with animal welfare standards. This competency alone makes the restaurant stand out
immensely in a very positive manner because most of fast food restaurants do not offer this
experience. Another competency would be the fast service that Chipotle offers. Customers place
their order and can watch exactly what is happening to their food by moving along the service line.
The customer can choose from a burrito or bowl, and they get to select the different kinds of meat
and toppings. If the company were to have an extensive menu, this unique experience of speaking
directly to those who are preparing their food would not be able to happen. Also, with a limited
menu, the employees are very experienced and knowledgeable with what is being served. When
considering the strengths, weaknesses, opportunities, and threats of Chipotle, there are many
positive aspects of the restaurant. In regards to the strengths, the company offers quality products
and has a very established name in the restaurant industry. People are aware that Chipotle strives to
serve organic food which creates a

Chipotle Case Analysis
Chipotle first opened in 1993 in Denver Colorado with a goal of providing a quick dining
experience using fresh, high–quality ingredients. Their founder, Steve Ells, had launched 16
restaurants in Colorado before McDonalds became its leading investor in 1998. McDonald's bought
into the company for $350 million and helped finance much of the company's rapid growth early on.
In the 7 years from 1998 to 2005 Chipotle increased its locations from 16 to 500. They increased
annual revenues from $2.26 billion in 2011 to $2.73 billion in 2012 then again to $3.21 billion in
2013 a growth of over 42%. From 2006 to 2011 their revenue nearly tripled. During 2014 they saw
an increase in same store growth in Q1 of 13.4% followed by 17.3% growth in Q2 (Edwards 2015).
2011 saw 12 month growth of 11% and their profit margin was nearly 26%, well above industry
average. Chiptole benefited greatly from the fast casual trend in dining. From 1999 to 2005, the fast
casual segment of the market has grown by 504% (Ferdman 2015). In 2014 consumers spent over
$21 billion in fast causal food and Chipotle was second in market share. This led to a spike in stock
prices sending them from $47.52 at the beginning of 2006 up to a company high in June ... Show
more content on Helpwriting.net ...
coli in Seattle in July in 2015 but gained public momentum in August when nearly 100 people got
sick with E. coli in Simi Valley CA. Later that year more than 64 more cases broke at 22 different
locations. As the news went viral Chipotles stock plummeted to $452.97 by January 1 2016. By the
Q2 2016 sales dropped 23.6% and year to date profit fell 82%. Revenue was down to $998.4 from
$1.2 billion last year. Government officials believe the outbreak came from produce, most likely
lettuce however, Chipotle believes it stemmed from tainted Australian beef and spread to other foods
(Jargon 2016). Either way, there a combination of issues ranging from the product itself (the source),
and the handling of the

Chipotle Mexican Grill ( Cmg )
Chipotle Mexican Grill (CMG) was founded in Denver, Colorado in 1993. It began when
American's were visiting fast food chains on a much more regular basis than in years past. Places
like McDonald's, Burger King, and Taco Bell initially seemed to be competition for Chipotle.
However, a recent shift towards healthy eating, organic produce, and grass–fed meats has shifted the
favor towards Chipotle. At the end of 2015, Chipotle Mexican Grill owned and operated 1,971
locations in the United States alone. CMG also owns and operates thirteen ShopHouse Southeast
Asia chains along with being an investor in three Pizzeria Locale restaurants. Steve Ells and
Montgomery Moran are the CEO's of Chipotle, and together make over $2 million from the
company. The executive team is rounded out with five other executive officers who make up the
development, finance, marketing, and director positions. Chipotle has approximately 5,100
employees, and together the company brought in around $475,602,000 in net income as of the end
of 2015. In January of 2016, Chipotle reported that their number of shareholders had reached 1,030.
The shares are traded on the New York Stock Exchange, and currently the company does not give
any dividends to its shareholders. Between September of 2015 and March of 2016, Chipotle faced
public scrutiny and in relation to that its stock continually fluctuated. Certain key events led to
Chipotle's stock reaching high points, however other events and press releases led

Chipotle Mexican Grill
Chipotle Mexican Grill, Inc., founded 1993, is a restaurant company, which operates fast–casual
fresh Mexican food. Headquartered in Denver, Colorado, Chipotle operates 2,010 restaurants across
the United States, Canada and Europe, with 59,330 employees (Dec 31, 2015). Included are 13
Southeast Asia Kitchen restaurants and 3 Pizzeria Local restaurants, also operated by Chipotle
Mexican Grill, Inc. The company offers delivering and catering services, and delivers its
ingredients, and other supplies to its restaurants from 24 independently owned and operated regional
distribution centers. Since 2006, Chipotle is listed on the New York Stock Exchange under the
symbol CMG.
Chipotle recognized their strength in fast growth in terms of operations, ... Show more content on
Helpwriting.net ...
Fast casual sits between the more traditional full–service restaurants and the typical fast food
establishments. Like fast food, fast casual is typically ordered on a counter and offers no table
service. The atmosphere is generally a little bit more upscale with a simple look, which can include
plates or cutlery. Food is usually prepared with mass–produced food items, however considered to
be higher–quality and often locally sourced with a wider selection of healthy options. The menu is
the same from location to location and mostly inexpensive.
According to National Restaurant Association the restaurant industry covers one million fast food
service locations in the U.S. and employs 14 million people. Globally, fast food generates a revenue
of over $570 billion and it is expected to exceed $780 billion in 2016. Furthermore, the industry
expects an annual growth of 2.5 percent for the next several years. The United States generated a
revenue of $200 billion in 2015. In the restaurant market share 48.5 percent are covered by full
service restaurants, which means that the QRS segment has sales of 51.5 percent and is supposed to
grow

The Idea Of Chipotle Company
I. Overview
The idea of Chipotle started with its founder, chairman and co–CEO, Steve Ells. His idea was to
offer higher quality food, combined with the speed and convenience of fast food, giving birth to a
new trend: "fast casual". Chipotle offers a focused menu of burritos, tacos, burrito bowls (a burrito
without the tortilla) and salads made from fresh, high–quality raw ingredients, prepared using
classic cooking methods and served in a distinctive atmosphere.
Chipotle opened with a single restaurant in 1993, in 1998 McDonald's made an investment that
allowed Chipotle to grow from 14 stores to about 500 stores in 7 years. McDonalds was a major
contributor to Chipotle's success, notwithstanding McDonalds' decision to divest its stake in 2006,
Chipotle has been able to maintain a robust growth ever since and became a huge success. Today
Chipotle operates more than 2,000 restaurants, including 26 Chipotle restaurants outside the US and
14 ShopHouse Southeast Asian Kitchen restaurants, and is an investor in an entity that owns and
operates four Pizzeria Locale restaurants.
One of the success drivers of Chipotle is their emphasis on simplicity and high quality through their
vision of Food with Integrity, where they claim to use the best ingredients that are sustainably grown
and raised responsibly. Coupled with the overall social trend of more conscious food consumers
seeking for healthier options, Chipotle's offering seems like the perfect formula for growth.
II. Porter's

Chipotle Case Study Essay
5. Conduct an analysis of the company's sales efforts, especially regarding the cultivation of
customer relationships.
The sale efforts of Chipotle mainly focused on "Cultivation thoughts ", which intently aim to change
people's way of thinking on fast foods. Even though Chipotle provide fast foods, the company like
the order served fast without having the "Fast food" experience. Chipotle in recent years has put a
huge emphasis on educating the customers that the organic, healthy and sustainable integrations they
offer in the food, and much of which gets widespread attention with campaigns.
Recently, Chipotle launched "Friend or Faux", which is an online game that allowed customers to
learn the difference between Chipotle's ingredients ... Show more content on Helpwriting.net ...
Provide a description of the company's promotional efforts aligned with one‐to‐one marketing and
socially‐networked marketing. This section should tie directly with the company's CRM efforts.
Chipotle did a great job on adding the customer value by reading out the customer by creative and
meaningful approaches. By having "Word of mouth" strategies like hosting events like food festival
event, making community outreach, and interacting with customers via social networking, Chipotle
's promotion efforts successfully make it a strong brand in fast food industry.
In early 2015, Chipotle hosted a poem competition on Twitter and Facebook, offering the best 20
burrito themed Haikus a Chipotle dinner for two. Writing a poem was relatively easy for people, but
the word of the contest spread quickly and widely because the people like to participate in this
competition and eager to share their creatively work. Those Haikus were became the best promotion
for Chipotle to some extents.
Unlike the other companies that providing free samples for celebrities to let them advertise the
products, Chipotle are offering free burritos a day to high–profile Professional athletes, who love
Chipotle, for a life long time. Famous athletes including Mario Chalmers, Paul Rabil and Tony
Hawk are known for having the free–burrito

Case Study Chipotle
Chipotle has been a successful company in the United States ever since Steve Ells launched the
business in 1993. The business started in Colorado and has since has expanded and grown to be
successful to restaurants all over the U.S. Since it has been so successful in the U.S, it is likely that it
can be profitable in other nations around the world. However, there are certain rules, regulations and
implications that Chipotle needs to explore before the business expands into global markets. Many
businesses jump to the conclusion of thinking that if a company can be successful in one area, that it
can be just as successful in another. Before making this assumption, businesses need to expand on
potential challenges that they might encounter

Chipotle Mexican Grill Paper
Strategy Statement
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.
The tone will be direct, exciting, and positive.
Creative Brief
Client: Chipotle Mexican Grill
Product: Mexican, cantina style food
Why are we advertising? To improve relations with customers lost and to gain new customers
Whom are we talking to? 18 to 34–year–old men and women, $75,000–$99,000 income for single
person homes, $100,000–$149,000 multiple adult homes, Bachelor's degree or higher, upper middle
class, Non–Hispanic Whites, who live in areas where the brand has locations
What do ... Show more content on Helpwriting.net ...
Exciting, confident, trendy
Are there any Sacred Cows? The frontline dining experience in their restaurants
Are there any creative guidelines? (required or suggested media choices)
Two full page print ads in color, in a magazine, targeting 18 to 34–year–old professionals and their
families, who lead active lifestyles. These ads will be targeting health conscious people who want
the best for themselves and those they love.
Day in the life Joey Samuels is a 32–year–old, Caucasian, single father who works as a seventh
grade teacher in the local middle school. He has been teaching for eight years. He graduated from
Clemson University in 2009 with a Bachelor's degree in Education. He makes $42,193 dollars
annually, which he and his two twin 5–year–old daughters, Amber and April, live off of in a two–
bedroom town home. He was left three years ago by his wife of 5 years, but they have since
divorced. She sends him $250 dollars a month for the girls, but there is no formal agreement in
place. He has full custody of his daughters. The family lives in Myrtle Beach, South Carolina and
they eat at Chipotle pretty regularly. They stopped in late 2015 for quite a while during the E. coli
updates. In December, they started coming back to the

Chipotle Core Competencies
Chipotle Mexican Grill is a fast food restaurant that opened its doors in 1993. They specialize in
serving a focused menu of several Mexican foods which are made with only high–quality
ingredients and are priced reasonably. They also serve their dishes fast and in a restaurant, unlike
most fast food restaurants, as it is aesthetically pleasing and has good interior design. Core
Competencies One of Chipotle's significant core competencies is to offer premium quality food at a
low cost. In 2003 to 2004 Chipotle decided to obtain locally grown produce and meat from farms
with high animal welfare standards. Farmers who followed the guidelines set forth by the
Department of Agriculture's were Chipotle's priority suppliers to fulfill their "Food with Integrity"
campaign. Providing a close business relationship with these farmers has enabled both Chipotle and
the farmers to have a competitive advantage over their competition. Chipotle has found their
customers appreciate a restaurant with strong food ethics. Chipotle is currently leading the way for
fast–casual dining especially since the trend in North America is for better healthier ingredients.
Chipotle also has a focused but limited menu. This affords their customers the opportunity to make
an easy decision and obtain their food quickly. Chipotle has the means to focus on quality of all of
their menu items. Competitors can find it difficult to imitate the menu because of all of their items
they serve; there just

Chipotle Mexican Grill ( Cmg )
History
In 1993, Chipotle Mexican Grill (CMG) was established in Denver by college graduate and
classically trained chef, Steve Ells. The initial startup saw CMG focused on offering limited menu
choices which include burritos, burrito bowls, tacos, salads, soft drink, fruits drinks and milk. CMG
menu is classically prepared and customers have the opportunity to dine in elegance at a reasonable
cost. CMG business model is crafted in line with the company's' "Food with integrity" mission by
providing the best quality, farm fresh healthy food by keeping a limited menu. The company prides
itself on using organically grown local produce and meats that are free of antibiotics and hormones
and which is in compliance with governmental ... Show more content on Helpwriting.net ...
The term "fast casual" was generated as part of the restaurant industry in the 1990's. Fundamentally
speaking, this category of restaurants do not offer a full table service. Fast–casual are strategically
positioned between fast food and casual dining and as such is differentiated by the quick service
offered, quality of food, casual dining, inviting ambiance, reputation, innovation, menu price and
location. It is the practice of companies operating within this industry to use wholesome and fresh
ingredients in the preparation of the high–quality food they serve. In addition, professional
preparation and appealing presentation are highly prioritized by companies operating in this
segment. (Parpal 2015).
Ferdman 2015 alluded to the fact that fast casual restaurant industry has grown within the region of
550 percent since 1999. During the recent economic downturn, fast casual restaurants were the only
segment of the industry with significant sales growth and as such was expected to contribute
approximately $22 billion in sales for the 2012 fiscal year. The performance of the fast–casual
segment continues to contribute tremendous growth to the overall restaurant industry and the
National Restaurant Association was able to report annual industry sales of $709.2 billion in 2015
which was generated from 1 million restaurants operating in the United States (reasturant.org). The
rapid growth of

Chipotle Research Paper
"Food with Integrity" is the slogan of this restaurant chain; which is a rather new food stop of the
time. Chipotle is a higher–end, fast food restaurant found in higher class neighborhoods. It is
personally my favorite fast food restaurant and I would highly recommend it to anyone who would
like to sink their teeth into some fresh, juicy, Mexican food. Founded in 1993, by Steve Ells,
Chipotle has been serving the U.S., U.K., Canada, Germany, and France for twenty–two years. The
chain offers a wide variety of options to put on a burrito, bowl, burrito bowl, or tacos. You get the
option of what type of meat you would like including chicken, steak, barbacoa, or pork (they also
offer vegetarian options). After picking your meat, you can go down the "line" to choose your
toppings. From rice, beans, lettuce, guacamole, salsa, and many more toppings, the combinations of
tastes are endless! ... Show more content on Helpwriting.net ...
My most recent experience was a Tuesday night, after practice, when I had not eaten all day.
Although it is a 25 minute drive to the closest Chipotle from Edinboro, the trip is always worth it.
As I walked in, the place was packed. A sign said "Maximum Occupancy: 75," and this crowd was
definitely pushing it. I waited patiently in the long line with one of my friends who is also a Chipotle
connoisseur. We finally reached the front and the friendly staff asked which type of bread I wanted. I
chose a chicken burrito with white rice and no beans. The boy scooped up a hefty helping of chicken
and rice and dropped it on my burrito. He then passed it down the line to the next worker where I
chose mild salsa and sour cream. The next step, I got cheese and lettuce, and then they wrapped up
my burrito in foil. The entire thing costed $6.95 after I chose to get a free water

Chipotle
Chipotle Mexican Grill in 2012– Can it hit a second home run?
CONTENTS.
Executive summary.......................................................................................3
Introduction...................................................................................................4
Analysis..........................................................................................................4 1. Core
competences...........................................................................4 2. SWOT
analysis...................................................................................4 3. Value
chain.......................................................................................6 4. the chief components of
strategy....................................................7 5. the generic competitive
strategies..................................................8 6. strategy
analysis...............................................................................8 a. the general
comparison.........................................................8 b. financial and operating performance
analysis......................9 c. competitive strength comparison.........................................9 ... Show more
content on Helpwriting.net ...
Steve Ells is a chairman and CEO of Chipotle, and he wanted to transform the food from serving
fast but low quality to high quality. By year–end 2005, Chipotle had 489 locations in 24 states. With
an unusually limited menu and the ability to have a customer's order ready quickly, Chipotle can
serve 300 customers in an hour, keep the number of customers waiting in line at peak hours to a
tolerable minimum. Chipotle has re–vamped their mission statement to a simple but effective, "Food
with Integrity." This embodies Chipotle's position on the importance of using animals that are
naturally raised in "happy" environments. Chipotle believes it is important for people to know where
their food comes from.
II. ANALYSIS.
II.1.CORE COMPETENCES.
Some of the value chain activities that Chipotle perform especially well are: 1. Top – quality of
products: organic beans, organic dairy products, natural meats from animal without antibiotics and
growth hormones to speed weight gain... 100% of pork from naturally raised pigs from those
producers who can meet Chipotle strict guidelines. 85% of beef comes from farms held with the
same criteria. 100% of dairy comes from cows that have never received the rBGH hormone.

2. Healthier ingredients compared to other fast food establishments (compare a Chipotle burrito with
a McDonalds hamburger).
3. Friendly with environment: using ingredients which are avoided

Chipotle Case

More Related Content

Similar to Chipotle Case

More from Angela Weber

Recently uploaded

Chipotle Case