chipotleToChina
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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.
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China’s 1.3 Billion Consumers: Cashing In on the China Miracle
China’s 1.3 Billion Consumers: Cashing In on the China Miracle
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chipotleToChina
- 2. Chefs Ahmed Binhassan Nouf Altharwa Sarah Binsaied Shuoyan Zhang Sixiao Xue
- 3. Steps Chipotle overview China overview Why Shanghai? Strategies Recommendation
- 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
- 18. Supplier
- 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.
- 26. Catering Service
- 27. Competition
Editor's Notes
- Chipotle’s philosophy is Food with Integrity, which basically is the commitment to find the best ingredient.
- It was first found in 1993 by Steve Ells, and now we have more than 2000 restaurants around the world.
- Our Revenue have decreased by 23.4% in the first quarter of 2016 comparing to 2015. As well as our sales and restaurant transactions.
- Our Strengths are our Brand Recognition and out Market share. The lack of Chinese market experience and high cost of ingredients are our main weaknesses. Our opportunities are the 1st mover advantage and the Chinese population. On the other hand we have Direct and Indirect competitors such as TacoBell.
- For the suppliers, we will work with local farmers.
- For the social responsibility, we will do recycling for all of our products.
- For the communication channel, we will use elevators, public transportations, social media which are different than what we use such as (BaiDu) that is similar to google in the US, and product placement in a well known Chinese TV show.