Chipotle mexican grill

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

2. Company background

3. TacosBurritos
Salads
Burrito Bowls
Chips & Guac Kid's Menu
Company 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 1,084 1,230

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 healthy
food at affordable price.
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 economy of 2008-2009)

7. M E X I C A N G R I L L
Industry Analysis – Five force analysis
Athletic
Apparel
Industry
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.
Low
 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
other industries.
High
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.
People don’t usually have a strong loyalty to
only one restaurant.
High
Compete on the basis of location,
food quality, style and
presentation, food range and
variety, ambience, hospitality and
service in all other regards.
Moderate

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.
Break-through product
The ShopHouse Southeast Asia
Kitchen
Doritos Locos Taco
Kids menu and vegetarian,
gluten-free and low-calorie
options
Savory Queso and variety of
catering options
Strategy in 2012
Offering a higher quality of food
with a higher perceived value
Aggressive promotion of the
Doritos Locos Taco
Launched mobile ordering apps
for Android and iPhone
Adopting sustainable and eco-
friendly business practice
Slogan / Brand campaign "Food With Integrity" The Cantina Bell menu in 2012
Emphasized friendly hospitable
service
"Artisalnal Mexican Kitchen"

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
Infrastructure
Financing, legal support, general management, accounting, quality control
Human
Recourses
Recruiting, training, development, evaluate
(Above Standard Staff and High Benefit)
Technology Social Media , Product R&D
Procurement Sourcing raw material from Supplier (Approved suppliers) and site selection from real
estate brokers.(surrounding, demographic & business information)
- Approved
supplier list of
raw materials
- Inspection (Food
safety standard)
- Cooking (Slow
food fast)
- Throughput and
maintain quality
- Distribution
Center
- Advertising
(Grammy
Award), Media
(VDO, Music)
- Promotions &
Campaigns
(Farm Team)
Order Processing
(Online, Fax,
IPhone App)
Inbound Logistics Operations Outbound
Logistics
Marketing &
Sales
Service
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
RelativeStrength
Labor
Distribution
Brand
Advertising
Variety of Menu
Customer ServiceFinance
Technology
Strategic Importance HighLow
High
Operation
Atmospheres
Cost

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

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.
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.
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
11,922,903
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 Net Income

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 audience
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 food ingredients and other
key supplies.
- Health concerns about food or dining out generally

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
suppliers of ethically grown and raised
product and source new ethical suppliers.
Home delivery in an area to influence
mainstream perceptions about convenience of
service.