This document provides a summary of a business plan for Chipotle to expand into China, specifically Shanghai. It includes an overview of Chipotle, a SWOT and PESTLE analysis of the China market, recommendations on why Shanghai is a good location, and proposed strategies around menu customization, supply chain management, and an initial short term plan to open one test restaurant. The recommendation section suggests further expanding with additional stores over the long term.

1. Recipe
in China
良心之食
Chipotle

2. Chefs
Ahmed Binhassan
Nouf Altharwa
Sarah Binsaied
Shuoyan Zhang
Sixiao Xue

3. Steps
 Chipotle overview
 China overview
 Why Shanghai?
 Strategies
 Recommendation

4. Overview - Philosophy

5. Overview
 Founded by Steve Ells
 First restaurant in Denver 1993
 2,066 restaurants
http://ir.chipotle.com/phoenix.zhtml?c=194775&p=irol-newsArticle&ID=2161714

6. Financial
Q1 2016 Vs. Q1 2015:
 Revenue decreased 23.4% to
$834.5 million
 Sales decreased 29.7%
 Restaurant transactions
decreased 21.1%
http://ir.chipotle.com/phoenix.zhtml?c=194775&p=irol-newsArticle&ID=2161714

7. SWOT Analysis
S
 Strong financial
 Brand recognition
 Market share
 Innovation
W
 Lack of Chinese market experience
 High cost of ingredients
 Limited menu
O
 Need for Fast, casual and healthy
food in china
 1st mover advantage to china
 High density and diverse population
in China .. 1.6 billion
T
 Competition Mexican food
restaurants (Taco Bell)
 Polluted Agriculture
 Indirect competition (other
restaurant)

8. PESTLE Analysis
Political: governmental influence.
Economical: The Government wants money to stay in the country.
Social: Increasing in numbers of middle class, disposable income,
& health food awareness.
Technological: Different social media & internet search.
Environmental: Increased pollution, food safety.
Legal: Strict new food safety regulations.

9. China - Shanghai
👪 Population: 1.3Billion
💰 GDP: 6.9% Q4 2015
🍚 % of population eat outside: ≈ 51%（Large
Cities).
🍟 3 Most Popular Fast Food: McDonald's,
KFC, and Pizza Hut.
🌲 Food safety concern: Increased
www.wechatinchina.com／www.baidu.com

10. Why Shanghai?
www.baidu.com
 Population: 24 million
 Tourists: 130 million
 According to the age groups, a
total of (45.57%) tourists were
between 25 and 44.
 Food industry: a 35% growth in
the sales of domestic organic food.
 Estimated foreign population will
be increased to 800,000 in 2020
 Good Fengshui

11.  Menu
• Burrito
• Burrito Bowl
• Crispy corn tacos
• Soft corn tacos
• Soft flour tacos
• Salad
• Kid’s menu
 Gifts cards
 Chipotle catering
service
 Online ordering service
 Home delivery service
 Nutrition Calculation
and Allergens & Special
Diet tips, online service
Product & Services

12. Standardization
墨西哥卷饼 墨西哥卷饼碗 香脆玉米塔可 软式玉米塔可 软式面粉塔可 色拉 儿童菜单

13. Customization

14. Pollution

15. Layout

16. Risk mitigation

17. Intellectual Property

18. Supplier

19. Social Responsibility

20. Communication Channel

21. Entering Strategy
 Short-term plan: Open
one store - test the
market
 Long-term plan: Open more
stores Pizzeria Locale and bring
Shop House Kitchen.

22. Recommendation

23. Bon appétit 请享用

24. Chinese Etiquette
 Business Card.
 Guanxi.
 Greeting-titles of courtesy.
 Gift-avoid clock or watch.
 Drinking culture.
 Avoid strong negative statement.

25. Organizational Chart

26. Catering Service

27. Competition