This document provides an overview and analysis of the Mexican fast casual restaurant chain Chipotle. It includes a multi-year summary of the company's financial and operational performance showing steady growth. It also analyzes the restaurant industry and fast casual market trends. Chipotle faces competition from other chains and risks around supply costs and new entrant competition. However, its strategy of using natural ingredients emphasizes its "Food With Integrity" philosophy. The document performs an internal and external analysis of Chipotle's capabilities and outlines strategic objectives to continue its differentiation strategy and expansion.

1. Ketsara Pratumtong 56310700304
Jaikarn Piromrasmee 56310700307
Chalit Saengprasit 56310700310
Thunchanok Issaraphanit 56310700317
Wipada Kaewsomnugk 56310700333
SarunpakTantimasakul 56310700334
Suparat Itthiritthanon 56310700339

2. background

3. TacosBurrit
os
Salad
s
Burrito
Bowls
Chips &
Guac
Kid's
Menu
background “To change the way
people think about
and eat fast food”

4. M E X I C A N G R I L L
Performance: 5 Years strategic
& financial
1,085,782
1,331,968
1,518,417
1,835,922
2,269,548
70,563
78,202
126,845
178,981
214,945
-
50,000
100,000
150,000
200,000
250,000
-
500,000
1,000,000
1,500,000
2,000,000
2,500,000
2007 2008 2009 2010 2011
Revenue Net Income
2007 2008 2009 2010 2011
Restaurants open
at year-end
704 837 956
1,08
4
1,23
0

5. M E X I C A N G R I L L
Problem & Challenge
Competition from
new and existing
restaurants in the
industry
Problem
Challenge
Risk of opening new
restaurants
Volatility of
supply costs
Higher prices
To use natural ingredients
to emphasize its commitment
to maintaining its status
as a “fast-casual”
restaurant that makes
Insufficient
sustainable
suppliers to cover
demand
Supplier
Relationships

6. M E X I C A N G R I L L
Industry Summary
Restaurant Industry (2012)
Market Size: $632 billion
Capacity: 970,000 units (in U.S.)
Fast Casual Restaurant (2012)
Market Size: $22 billion
Capacity: 13,643 units (in 2011)
Share: 3-4% of overall restaurant
Growth: Double digit growth
(continue to grow in US during the down

7. M E X I C A N G R I L L
Industry Analysis – Five force
analysis
Athlet
ic
Appare
l
Indust
ry
Bargaining
Power of
Suppliers
Rivalry
within an
Industry
Threat of
New Entrants
Threat of
Substitutes
Bargaining
Power of
Buyers
 Unique supply chains.
 Materials purchased from
suppliers can vary on pricing.
 Some of the materials for the
restaurant are easily purchased
at the local hardware store or
office supply store.
Lo
w Price that customers have to
pay is stable.
 The number of consumers of
Mexican food is increasing.
Low
No specialized
expertise is required.
Sunk costs are low.
Startup capital is
modest compared to
Hig
h
People can make their
own food at home.
Grocery stores have
ready-to-eat food or
easy-to-make meals.
Go to a fast food
restaurant.
Go to a different
restaurant. Hig
Compete on the
basis of
location, food
quality, style
and presentation,
food range and
variety,
ambience,
hospitality and
service in all
other regards.
Moder
ate

8. M E X I C A N G R I L L
Competitor analysis &
comparison
Chipotle Taco Bell
Moe's
Southwest
Grill
Qdoba Mexican
Grill
Founded 1993 1995 2000 1995
Parent company Chipotle Yum! Brands Focus
Jack in the Box,
Inc.
Owned
Restaurants
(2011)
1,230 in 41 states
(Columbia, Canada,
UK)
1,201 in US
3 in
International
420 in 26
states
(Columbia)
245 in 42
states
(Columbia)
Franchised
Restaurant
No
4,029 in US
237 in
international
No
338 in 42
states
(Columbia)
Sales in
2009/2010/2011
($)
1.52 -> 1.84 ->
2.27 million
6.7 -> 6.8 ->
6.9 billion
N/A
0.923 -> 0.961
million
Menu
Burritos, Burito
Bowl, Taco, Salad,
Chips and Guac
Tacos, Burritos,
Gordita, Salads,
Nachos, Chalupas,
Breakfast menu
Burritos,
Quesadillas,
Fajitas, Tacos,
Nachos, Rice
bowls, and
Salads
Burritos, Tacos,
Taco salads,
Tortilla soup,
Mexican gumbo,
Chips and Dips
Operated Time
11:00 a.m. - 10.00
p.m.
8:00 a.m. - 11:00
p.m.
11:00 a.m. -
10:00 p.m.
10:30 a.m. -
10:00 p.m.

9. M E X I C A N G R I L L
•Changing political
issues on the fast
food industry
•Government
regulation on label
and packaging.
•Corporate Tax.
•Consumer demand:
sales in food
industry are
primarily the result
of discretionary
purchases
(income/spending).
•Cost of goods sold:
food costs, labour
costs and occupancy.
•Societal
preferences,
beliefs, aspiration
and concern affect
demand.
•Trend has developed
beyond healthier.
Macro Environment Analysis
Economic SocialPolitical
•Local and federal
labour laws affect
employee wages and
benefits.
•Environmental
protection laws.
•Consumer protection
laws.
•Food safety laws.
•Sustainability
supply chain.
•More “Green”
Industry.
•Environmentally
friendly material.
•Recycling is a
prominent global
issue and in
response.
•Development in
automated food
production.
•Point of sale
system, online and
mobile payment
method.
•Social media are
provided to increase
sales and improve
customer service.
Environment LegalTechnology

10. M E X I C A N G R I L L
Internal Analysis: Value Chain
Analysis
Firm
Infrastr
ucture
Financing, legal support, general management,
accounting, quality control
Human
Recourse
s
Recruiting, training, development, evaluate
(Above Standard Staff and High Benefit)
Technolo
gy
Social Media , Product R&D
Procurem
ent
Sourcing raw material from Supplier (Approved
suppliers) and site selection from real estate
brokers.(surrounding, demographic & business
information)
- Approved
supplier
list of
raw
materials
- Cooking
(Slow food
fast)
-
Throughput
-
Distributi
on Center
-
Advertisi
ng
(Grammy
Award),
Order
Processing
(Online,
Fax,
IPhone
Margin

11. M E X I C A N G R I L L
Capabilities Analysis
Superfluous Strengths
Zone of Irrelevance
Key Strengths
Key Weakness
Site Selection
Procurement
Relative
Strength
Labor
Distribution
Brand
Advertising
Variety of Menu
Customer ServiceFinance
Technology
Strategic HigLow
High
Operation
Atmospheres
Cost

12. M E X I C A N G R I L L
Strategic Group Analysis
Narrow
Low Qua High
Wide
Variety
of Menu
Offering
s

13. M E X I C A N G R I L L
Current Business Strategy
Analysis
Serving a focused menu
Setting distinctive interior and
aesthetically pleasing atmosphere
Using high-quality raw ingredients and
classic cooking methods
Having friendly people take care of
customer
Increasing awareness and respect for
environment

14. M E X I C A N G R I L L
New Objectives (Strategic &
Financial)
Vision:
“To change the way people
think about and eat fast food”
Mission:
“Serving high quality food
while still charging
reasonable prices”
Strategic:
1. To increase consumer
awareness with regards to
the importance and benefits
consuming of naturally-
raised produce.
2. To vigorously seek out
expansion into the European
markets.
Revenue
Forecasts:
1. Unit growth
2. Same store
sales growth
4,743,906
5,704,076
6,858,584
8,246,766
9,915,916
11,922,90
3
654,753
864,998
1,142,754
1,509,699
1,994,472
2,634,909
-
500,000
1,000,000
1,500,000
2,000,000
2,500,000
3,000,000
-
2,000,000
4,000,000
6,000,000
8,000,000
10,000,000
12,000,000
14,000,000
2015 2016 2017 2018 2019 2020
Revenue

15. M E X I C A N G R I L L
Business Strategy
Business Strategy:
Differentiation Strategy
Chipotle must be certain to
continue pursuing the current
strategies.
Expanding “Food With Integrity”
campaign to serve healthier food.
Other evidence suggests the
competitive position:
- Differentiated product
positioning
- Operational efficiencies
- People culture based on
performance
- Growth that far outpaces the
fast-casual sector and the
restaurant industry in general
- Growing sector with large target
Risks and
Uncertainties:
- Changes in consumer
preferences or decreased
consumer spending.
- The availability of
qualified employees or
increased labor costs.
- Increased in the cost of

16. M E X I C A N G R I L L
Value Proposition,
Distinguished Activities
Brand
Equity
Quality
Menu
Culture
Distinguished Activities
Use the “Food With
Integrity” philosophy to
diversify into other
food segments such as
bakery-café.
Raise the bar for what
the market expects a
sustainable restaurant
to offer such as the use
of recycled and green
materials in store, use
recycling water for
restroom flushing.
Defining long-term
contracts with existing