This document analyzes Chipotle's position in the fast-casual restaurant industry. It begins with an industry analysis, noting the industry's high growth rate and sensitivity to economic and environmental factors. It then provides an overview of Chipotle, highlighting its market leadership but thin margins. Strategic issues are volatile supply costs and lack of product differentiation from competitors. Options discussed are market penetration, product development, and market development, with product development recommended to differentiate Chipotle's offerings. The implementation strategy involves research, test launches, and national rollout of a new product.
This document summarizes an analysis of Chipotle Mexican Grill. It includes appendices on the company's executive summary, dominant economic characteristics, PESTEL analysis, five forces analysis, driving forces, key success factors, financial analysis, resources and capabilities, weighted competitive strength analysis, strategic group map, current strategy, and SWOT analysis. The document examines Chipotle's growth strategy, competitive advantages of fresh, customizable food, and challenges such as high competition in the fast food industry. It recommends strategies like adding new menu items and improving technology to help Chipotle continue its expansion.
Chipotle Mexican Grill is a fast-casual restaurant chain focusing on sustainably sourced food. It has strong brand loyalty and marketing expertise. While competitors struggle, Chipotle enjoys high growth and margins due to operational efficiencies, people culture, and differentiated product. To sustain its position, Chipotle should strengthen supplier relationships, source new ethical suppliers to support growth, raise sustainability standards, and leverage content marketing success.
This document analyzes the marketing strategies of Chipotle Mexican Grill. It provides an overview of Chipotle, including its founding, revenues, and "food with integrity" approach. It then performs an environmental scan, noting competitive pressures and Chipotle's commitment to local, sustainable ingredients. Comparative analyses of competitors Qdoba and Moe's Southwest Grill are given. Customer profiles examine Chipotle customers demographically, psychographically, geographically, and behaviorally. A SWOT analysis of Chipotle is presented. The marketing mix of product, price, place, and promotion is explored. Future developments around new products, pricing, store growth, and promotional strategies are outlined.
Chipotle was founded in 1993 by Steve Ells to change perceptions of fast food by serving high-quality, fresh ingredients in a fast casual restaurant setting. The company has since expanded to over 1,500 locations across the U.S. and internationally. This strategic review identifies key trends impacting Chipotle, including rising minimum wage, demand for healthy options, and an aging customer base. Porter's Five Forces analysis indicates Chipotle faces high power from suppliers and buyers in the industry. The document recommends Chipotle develop strategies to address these concerns going forward.
This document provides a strategic review and recommendation for Chipotle Mexican Grill. It begins with an introduction of the authors and recommendation of a "C2C" subscription strategy. The document then provides a company snapshot of Chipotle, discusses recent food safety issues, and identifies trends in minimum wage, healthy eating, and aging demographics. It analyzes Chipotle using Porter's Five Forces model and identifies key resources and capabilities. The document diagnoses improving reputation and decreasing buyer power as priorities. It proposes and evaluates three strategies: encouraging/educating customers, backward vertical integration, and the recommended "C2C" subscription model strategy.
This document outlines a marketing plan for Chipotle to expand in France. The objectives are to reach young consumers and enter new cities. Currently, Chipotle only has 4 locations in Paris. The plan proposes using food trucks to introduce the brand and menu in new cities. Marketing tactics include maintaining social media strategy, value-based pricing, and hybrid marketing channels. Implementation would involve food truck tasting events over 3 months to generate interest, followed by opening stores in 2 years in the most successful locations based on feedback. Evaluation metrics are sales, customers reached, feedback, and meeting strategic goals.
This document discusses the history and business strategy of Chipotle Mexican Grill. It provides details on the founder Steve Ells and Chipotle's expansion since opening its first restaurant in 1993. Chipotle focuses on using organic and sustainably sourced ingredients and operates in the fast-casual dining sector. The document analyzes Chipotle's strengths, weaknesses, opportunities, and threats, and provides recommendations to improve marketing and introduce healthier menu options.
This document summarizes an analysis of Chipotle Mexican Grill. It includes appendices on the company's executive summary, dominant economic characteristics, PESTEL analysis, five forces analysis, driving forces, key success factors, financial analysis, resources and capabilities, weighted competitive strength analysis, strategic group map, current strategy, and SWOT analysis. The document examines Chipotle's growth strategy, competitive advantages of fresh, customizable food, and challenges such as high competition in the fast food industry. It recommends strategies like adding new menu items and improving technology to help Chipotle continue its expansion.
Chipotle Mexican Grill is a fast-casual restaurant chain focusing on sustainably sourced food. It has strong brand loyalty and marketing expertise. While competitors struggle, Chipotle enjoys high growth and margins due to operational efficiencies, people culture, and differentiated product. To sustain its position, Chipotle should strengthen supplier relationships, source new ethical suppliers to support growth, raise sustainability standards, and leverage content marketing success.
This document analyzes the marketing strategies of Chipotle Mexican Grill. It provides an overview of Chipotle, including its founding, revenues, and "food with integrity" approach. It then performs an environmental scan, noting competitive pressures and Chipotle's commitment to local, sustainable ingredients. Comparative analyses of competitors Qdoba and Moe's Southwest Grill are given. Customer profiles examine Chipotle customers demographically, psychographically, geographically, and behaviorally. A SWOT analysis of Chipotle is presented. The marketing mix of product, price, place, and promotion is explored. Future developments around new products, pricing, store growth, and promotional strategies are outlined.
Chipotle was founded in 1993 by Steve Ells to change perceptions of fast food by serving high-quality, fresh ingredients in a fast casual restaurant setting. The company has since expanded to over 1,500 locations across the U.S. and internationally. This strategic review identifies key trends impacting Chipotle, including rising minimum wage, demand for healthy options, and an aging customer base. Porter's Five Forces analysis indicates Chipotle faces high power from suppliers and buyers in the industry. The document recommends Chipotle develop strategies to address these concerns going forward.
This document provides a strategic review and recommendation for Chipotle Mexican Grill. It begins with an introduction of the authors and recommendation of a "C2C" subscription strategy. The document then provides a company snapshot of Chipotle, discusses recent food safety issues, and identifies trends in minimum wage, healthy eating, and aging demographics. It analyzes Chipotle using Porter's Five Forces model and identifies key resources and capabilities. The document diagnoses improving reputation and decreasing buyer power as priorities. It proposes and evaluates three strategies: encouraging/educating customers, backward vertical integration, and the recommended "C2C" subscription model strategy.
This document outlines a marketing plan for Chipotle to expand in France. The objectives are to reach young consumers and enter new cities. Currently, Chipotle only has 4 locations in Paris. The plan proposes using food trucks to introduce the brand and menu in new cities. Marketing tactics include maintaining social media strategy, value-based pricing, and hybrid marketing channels. Implementation would involve food truck tasting events over 3 months to generate interest, followed by opening stores in 2 years in the most successful locations based on feedback. Evaluation metrics are sales, customers reached, feedback, and meeting strategic goals.
This document discusses the history and business strategy of Chipotle Mexican Grill. It provides details on the founder Steve Ells and Chipotle's expansion since opening its first restaurant in 1993. Chipotle focuses on using organic and sustainably sourced ingredients and operates in the fast-casual dining sector. The document analyzes Chipotle's strengths, weaknesses, opportunities, and threats, and provides recommendations to improve marketing and introduce healthier menu options.
Chipotle--An Analysis of the Growth and Future of the Fast-Casual Dining rest...Amanda Carullo
Chipotle Mexican Grill was founded in 1993 and has grown to nearly 2,000 locations across North America and Europe. The company focuses on using high-quality, sustainably-sourced ingredients in its tacos, burritos, and bowls. However, in late 2015 Chipotle experienced several foodborne illness outbreaks that hurt sales and its brand reputation. To recover, the company is implementing new food safety protocols, offering digital coupons, and working to regain customer trust over time.
This document provides an overview of a Mexican grill restaurant company. It discusses the company's background and mission to change perceptions of fast food. Financial performance from 2007-2011 is summarized, showing steady revenue and net income growth. Challenges facing the industry are described, including competition and supply chain risks. A competitor analysis compares the Mexican grill chain to similar companies. The document performs internal and external analyses to identify the company's strengths and weaknesses and opportunities and threats in the macro environment. Multi-year strategic objectives and a differentiation-focused business strategy are proposed to continue the company's growth.
Chipotle Mexican Grill faces both opportunities and threats in the short term as it recovers from 2015 food safety issues. While the company has strong financials and customer loyalty based on its food quality and personalized service, it relies on a limited supply chain of small farms for ingredients. To further succeed, Chipotle should strengthen supplier relationships, improve its food safety program, and consider franchising to share risks.
A one-a-day pill called Metabical, taken as part of a 12-week program, is proven to help overweight individuals lose 15-26 pounds and develop healthier eating habits. While assisting with short-term weight loss, the Metabical Support program ensures long-term lifestyle changes by modifying behaviors. The goal is to position Metabical as an effective option for the 60% of Americans wanting to lose weight, by promising to help regain control over one's world through weight management and behavior modification rather than unrealistic promises of dramatic weight loss.
This document provides an executive summary and analysis of Chipotle Mexican Grill's competitive position in the fast-casual Mexican dining industry. The key conclusions are that the industry is dominated by a few major players and faces high costs. Chipotle's strategy focuses on high-quality ingredients but rising food costs pose a threat. Major strategic issues for Chipotle include rising food costs, lack of national marketing, insufficient brand awareness of its key strategy, high restaurant development costs, and missing the breakfast market. Recommendations include building better supply chain management to reduce food costs, increasing national marketing and brand awareness of its quality focus.
At Biola University, in our Strategic Management, I worked with my group partners to choose our project, Chipotle Mexican Grill. This course has a fifteen-week capstone that my group and I worked on our project, Chipotle Mexican Grill. We are split our work on our categories into a problem statement, situational analysis, SWOT Analysis and new sources of Competitive Advantage, and Recommendations. We are required to include our speaker's notes on each slide that we use to passing the ball to each other that we share our work. We will deliver our final formal PowerPoint presentations in front of panelists. However, due to the coronavirus situation, we will deliver our final formal PowerPoint presentations to canvas (online) that allow the professor to grade on it.
Chipotle is an American chain of fast casual restaurants known for burritos and tacos made from natural ingredients. It was founded in 1993 in Colorado and has expanded across the US and Canada. The document discusses conducting a SWOT analysis and providing recommendations for Chipotle to expand into India. It identifies strengths such as innovation and brand equity, but also weaknesses in limited menus and higher prices. Opportunities include emerging markets and expansion abroad, but threats include increased competition. Recommendations include using a joint venture to mitigate risks and initially opening two locations in New Delhi and Bangalore.
Taco Bell is a challenger brand in the highly competitive quick service restaurant industry, holding only 4.7% market share compared to market leader McDonald's with 22.8% share. As the number one Mexican-style QSR, Taco Bell focuses on positioning itself against larger chains like McDonald's and Subway by targeting millennials with an edgy, youthful brand personality. While competitors emphasize health, consistency, or value, Taco Bell's unique offerings of tacos, burritos, and proprietary items appeal to a demographic seeking inexpensive, late-night meals. To strengthen its brand and grow market share, Taco Bell analyzes points of parity and difference compared to leaders, and seeks opportunities through strategic partnerships
Case study - Strategy Review at ChipotleNeha Randhawa
Chipotle Mexican Grill is a fast casual restaurant chain pursuing a differentiation strategy through high quality, organic ingredients, classic cooking methods, and friendly service. It has over 1500 locations across North America and Europe, with $3.21 billion in revenues in 2013. Chipotle aims to change perceptions of fast food through its "Food with Integrity" philosophy. Strengths include its brand image and sustainable food sourcing, while weaknesses include high food costs and limited menus. Opportunities for growth include international expansion and a growing market for fast casual dining. Threats include intense competition and increasing costs. Chipotle achieves competitive advantage through its valuable supply chain and operations focused on premium ingredients. Effective leadership from founders Steve Ells and Montgomery
Chipotle has grown from a single taqueria in 1993 to over 1200 locations today. Their vision of "Food with Integrity", focusing on high quality, sustainably-raised ingredients, has driven their success. A brand audit examines Chipotle's history, menu, marketing mix, and brand attributes from both a company and customer perspective. Qualitative and quantitative research with customers found high awareness of Chipotle's "big burritos" and association with "fresh, tasty, naturally-raised meat". Over 75% of customers reported regularly eating at Chipotle, demonstrating strong customer loyalty and relationships central to Chipotle's brand equity.
HelloFresh is an international meal kit company headquartered in Berlin, Germany. It sends customers pre-portioned ingredients and recipes to prepare home cooked meals. Leveraging its global scale and recent acquisition, HelloFresh has garnered around 60% of the meal kit market share in Canada with $200 million in revenue. The document discusses HelloFresh's branding, target customers, and marketing strategies across websites, mobile apps, social media, influencer marketing and email marketing. It analyzes the company's strengths, weaknesses and compares it to competitors.
Peloton Interactive Analysis by Berkley McFarlinBerkleyMcFarlin
This document provides a comprehensive analysis of Peloton Interactive, Inc. It begins with a financial analysis noting Peloton's high revenues compared to competitors but consistent net losses. An external analysis uses Porter's Five Forces model to examine Peloton's competitive environment and identifies opportunities and threats. An internal analysis evaluates Peloton's value chain and strengths and weaknesses. The document concludes with recommendations for Peloton to respond to COVID-19, optimize competitive opportunities, and increase its stock price.
Recommendations for Chipotle Mexican Grill Inc.Regina Ip
Provide recommendations for Chipotle Mexican Grill Inc. (Chipotle) to resolve current issues of fierce competition and decrease in market share and revenue
Panera Bread began in 1981 as Au Bon Pain Co., founded by Louis Kane and Ron Shaich. It prospered along the east coast of the United States and internationally throughout the 1980s and 1990s, becoming the dominant bakery-cafe operator. The presentation discusses Panera's history, products, external environment including Porter's Five Forces analysis, and internal environment through SWOT and IFAS/EFAS analyses. It identifies key strengths as high quality products, strong franchises, loyal customers, and brand image, and opportunities in organic food growth and technology advances.
The document discusses Metabical's demand forecasting, packaging, and pricing strategy. It presents three approaches to demand forecasting, with Approach 2 forecasting the highest demand. It recommends packaging Metabical in 12-week blister packs with day-of-the-week labeling. For pricing, it considers three options and selects $125 for a 4-week supply, as this prices Metabical above similar products to signal its value as a prescription drug, while still achieving strong demand and financial returns.
TruEarth is considering expanding into the $53 billion whole grain refrigerated pizza market but has concerns about viability given health concerns and competition. They conducted market research including 300 mall intercepts and an in-home product test of their basic pizza concept. The research found the concept had purchase intent but identified needed improvements like pricing and crust preferences. Sales volume is estimated at $15 million, above the $12 million needed, so the conclusion is TruEarth should launch the product after addressing identified issues.
Case Analysis - Trouble brews at StarbucksNavin Sood
Starbucks was facing several issues such as rapid expansion distracting from its core mission, declining sales due to economic recession, and increased competition. A SWOT analysis identified strengths in brand name and quality but also weaknesses such as high prices and product mix. Possible alternatives included launching a sub-brand, improving the US business, reconnecting with customers, expanding globally, and implementing customer loyalty programs and new technologies. The best alternatives were determined to be launching a sub-brand, improving the US business, reconnecting with customers through its barista culture, expanding globally, and implementing loyalty programs and technologies.
Pizza Hut is the largest pizza chain in the world with over 34,000 outlets across 100 countries. It was founded in 1958 in Wichita, Kansas by brothers Dan and Frank Carney. Pizza Hut was later acquired by PepsiCo and is now owned by Yum! Brands. Pizza Hut has been successful in India by adapting to local tastes through offerings like vegetarian and Indian-style pizzas. It aims to provide both quality food and entertainment to customers through strategies like staff dancing and birthday parties at restaurants.
Tim hortons- Marketing Competitive AnalysisKeshav Arora
Tim Hortons is Canada's largest restaurant chain known for being authentically Canadian. However, it is struggling to renew its identity. The document analyzes Tim Hortons' social media presence and engagement across platforms like Facebook, Twitter, Instagram and YouTube. It finds that Tim Hortons is inconsistent in its social media activity and engagement. In comparison, its competitors like McDonald's and Starbucks have more successful social media strategies. The document provides recommendations for Tim Hortons to improve its social media engagement, content frequency, and develop a more consistent brand tone.
Chipotle Mexican Grill is a restaurant chain founded in 1993 with over 900 locations across the US and Canada. It is facing issues with inconsistent and damaged inventory deliveries from suppliers, costing the State College location $70-130 per week. To address this, the team recommends implementing an RFID tracking system that would pay for itself within 11 weeks and improve the delivery and inventory process. The proposed implementation schedule and new process diagram with RFID are also included.
- The document analyzes consumer sentiment towards Chipotle following E. coli outbreaks in late 2015 using data from millions of tweets. It found strongly negative sentiment during the outbreaks that corresponded to falling sales and stock prices.
- Chipotle launched free burrito promotions in early 2016, which correlated with improving sentiment in tweets and a rise in stock prices. However, revenues remained down in Q1 2016 compared to pre-outbreak levels.
- The report predicts Chipotle's revenues will increase in Q2 2016 compared to Q1, as consumer sentiment has recovered to pre-outbreak levels with the scandals now in the past. Sentiment analysis of social media can provide insights into brand and stock performance.
Chipotle--An Analysis of the Growth and Future of the Fast-Casual Dining rest...Amanda Carullo
Chipotle Mexican Grill was founded in 1993 and has grown to nearly 2,000 locations across North America and Europe. The company focuses on using high-quality, sustainably-sourced ingredients in its tacos, burritos, and bowls. However, in late 2015 Chipotle experienced several foodborne illness outbreaks that hurt sales and its brand reputation. To recover, the company is implementing new food safety protocols, offering digital coupons, and working to regain customer trust over time.
This document provides an overview of a Mexican grill restaurant company. It discusses the company's background and mission to change perceptions of fast food. Financial performance from 2007-2011 is summarized, showing steady revenue and net income growth. Challenges facing the industry are described, including competition and supply chain risks. A competitor analysis compares the Mexican grill chain to similar companies. The document performs internal and external analyses to identify the company's strengths and weaknesses and opportunities and threats in the macro environment. Multi-year strategic objectives and a differentiation-focused business strategy are proposed to continue the company's growth.
Chipotle Mexican Grill faces both opportunities and threats in the short term as it recovers from 2015 food safety issues. While the company has strong financials and customer loyalty based on its food quality and personalized service, it relies on a limited supply chain of small farms for ingredients. To further succeed, Chipotle should strengthen supplier relationships, improve its food safety program, and consider franchising to share risks.
A one-a-day pill called Metabical, taken as part of a 12-week program, is proven to help overweight individuals lose 15-26 pounds and develop healthier eating habits. While assisting with short-term weight loss, the Metabical Support program ensures long-term lifestyle changes by modifying behaviors. The goal is to position Metabical as an effective option for the 60% of Americans wanting to lose weight, by promising to help regain control over one's world through weight management and behavior modification rather than unrealistic promises of dramatic weight loss.
This document provides an executive summary and analysis of Chipotle Mexican Grill's competitive position in the fast-casual Mexican dining industry. The key conclusions are that the industry is dominated by a few major players and faces high costs. Chipotle's strategy focuses on high-quality ingredients but rising food costs pose a threat. Major strategic issues for Chipotle include rising food costs, lack of national marketing, insufficient brand awareness of its key strategy, high restaurant development costs, and missing the breakfast market. Recommendations include building better supply chain management to reduce food costs, increasing national marketing and brand awareness of its quality focus.
At Biola University, in our Strategic Management, I worked with my group partners to choose our project, Chipotle Mexican Grill. This course has a fifteen-week capstone that my group and I worked on our project, Chipotle Mexican Grill. We are split our work on our categories into a problem statement, situational analysis, SWOT Analysis and new sources of Competitive Advantage, and Recommendations. We are required to include our speaker's notes on each slide that we use to passing the ball to each other that we share our work. We will deliver our final formal PowerPoint presentations in front of panelists. However, due to the coronavirus situation, we will deliver our final formal PowerPoint presentations to canvas (online) that allow the professor to grade on it.
Chipotle is an American chain of fast casual restaurants known for burritos and tacos made from natural ingredients. It was founded in 1993 in Colorado and has expanded across the US and Canada. The document discusses conducting a SWOT analysis and providing recommendations for Chipotle to expand into India. It identifies strengths such as innovation and brand equity, but also weaknesses in limited menus and higher prices. Opportunities include emerging markets and expansion abroad, but threats include increased competition. Recommendations include using a joint venture to mitigate risks and initially opening two locations in New Delhi and Bangalore.
Taco Bell is a challenger brand in the highly competitive quick service restaurant industry, holding only 4.7% market share compared to market leader McDonald's with 22.8% share. As the number one Mexican-style QSR, Taco Bell focuses on positioning itself against larger chains like McDonald's and Subway by targeting millennials with an edgy, youthful brand personality. While competitors emphasize health, consistency, or value, Taco Bell's unique offerings of tacos, burritos, and proprietary items appeal to a demographic seeking inexpensive, late-night meals. To strengthen its brand and grow market share, Taco Bell analyzes points of parity and difference compared to leaders, and seeks opportunities through strategic partnerships
Case study - Strategy Review at ChipotleNeha Randhawa
Chipotle Mexican Grill is a fast casual restaurant chain pursuing a differentiation strategy through high quality, organic ingredients, classic cooking methods, and friendly service. It has over 1500 locations across North America and Europe, with $3.21 billion in revenues in 2013. Chipotle aims to change perceptions of fast food through its "Food with Integrity" philosophy. Strengths include its brand image and sustainable food sourcing, while weaknesses include high food costs and limited menus. Opportunities for growth include international expansion and a growing market for fast casual dining. Threats include intense competition and increasing costs. Chipotle achieves competitive advantage through its valuable supply chain and operations focused on premium ingredients. Effective leadership from founders Steve Ells and Montgomery
Chipotle has grown from a single taqueria in 1993 to over 1200 locations today. Their vision of "Food with Integrity", focusing on high quality, sustainably-raised ingredients, has driven their success. A brand audit examines Chipotle's history, menu, marketing mix, and brand attributes from both a company and customer perspective. Qualitative and quantitative research with customers found high awareness of Chipotle's "big burritos" and association with "fresh, tasty, naturally-raised meat". Over 75% of customers reported regularly eating at Chipotle, demonstrating strong customer loyalty and relationships central to Chipotle's brand equity.
HelloFresh is an international meal kit company headquartered in Berlin, Germany. It sends customers pre-portioned ingredients and recipes to prepare home cooked meals. Leveraging its global scale and recent acquisition, HelloFresh has garnered around 60% of the meal kit market share in Canada with $200 million in revenue. The document discusses HelloFresh's branding, target customers, and marketing strategies across websites, mobile apps, social media, influencer marketing and email marketing. It analyzes the company's strengths, weaknesses and compares it to competitors.
Peloton Interactive Analysis by Berkley McFarlinBerkleyMcFarlin
This document provides a comprehensive analysis of Peloton Interactive, Inc. It begins with a financial analysis noting Peloton's high revenues compared to competitors but consistent net losses. An external analysis uses Porter's Five Forces model to examine Peloton's competitive environment and identifies opportunities and threats. An internal analysis evaluates Peloton's value chain and strengths and weaknesses. The document concludes with recommendations for Peloton to respond to COVID-19, optimize competitive opportunities, and increase its stock price.
Recommendations for Chipotle Mexican Grill Inc.Regina Ip
Provide recommendations for Chipotle Mexican Grill Inc. (Chipotle) to resolve current issues of fierce competition and decrease in market share and revenue
Panera Bread began in 1981 as Au Bon Pain Co., founded by Louis Kane and Ron Shaich. It prospered along the east coast of the United States and internationally throughout the 1980s and 1990s, becoming the dominant bakery-cafe operator. The presentation discusses Panera's history, products, external environment including Porter's Five Forces analysis, and internal environment through SWOT and IFAS/EFAS analyses. It identifies key strengths as high quality products, strong franchises, loyal customers, and brand image, and opportunities in organic food growth and technology advances.
The document discusses Metabical's demand forecasting, packaging, and pricing strategy. It presents three approaches to demand forecasting, with Approach 2 forecasting the highest demand. It recommends packaging Metabical in 12-week blister packs with day-of-the-week labeling. For pricing, it considers three options and selects $125 for a 4-week supply, as this prices Metabical above similar products to signal its value as a prescription drug, while still achieving strong demand and financial returns.
TruEarth is considering expanding into the $53 billion whole grain refrigerated pizza market but has concerns about viability given health concerns and competition. They conducted market research including 300 mall intercepts and an in-home product test of their basic pizza concept. The research found the concept had purchase intent but identified needed improvements like pricing and crust preferences. Sales volume is estimated at $15 million, above the $12 million needed, so the conclusion is TruEarth should launch the product after addressing identified issues.
Case Analysis - Trouble brews at StarbucksNavin Sood
Starbucks was facing several issues such as rapid expansion distracting from its core mission, declining sales due to economic recession, and increased competition. A SWOT analysis identified strengths in brand name and quality but also weaknesses such as high prices and product mix. Possible alternatives included launching a sub-brand, improving the US business, reconnecting with customers, expanding globally, and implementing customer loyalty programs and new technologies. The best alternatives were determined to be launching a sub-brand, improving the US business, reconnecting with customers through its barista culture, expanding globally, and implementing loyalty programs and technologies.
Pizza Hut is the largest pizza chain in the world with over 34,000 outlets across 100 countries. It was founded in 1958 in Wichita, Kansas by brothers Dan and Frank Carney. Pizza Hut was later acquired by PepsiCo and is now owned by Yum! Brands. Pizza Hut has been successful in India by adapting to local tastes through offerings like vegetarian and Indian-style pizzas. It aims to provide both quality food and entertainment to customers through strategies like staff dancing and birthday parties at restaurants.
Tim hortons- Marketing Competitive AnalysisKeshav Arora
Tim Hortons is Canada's largest restaurant chain known for being authentically Canadian. However, it is struggling to renew its identity. The document analyzes Tim Hortons' social media presence and engagement across platforms like Facebook, Twitter, Instagram and YouTube. It finds that Tim Hortons is inconsistent in its social media activity and engagement. In comparison, its competitors like McDonald's and Starbucks have more successful social media strategies. The document provides recommendations for Tim Hortons to improve its social media engagement, content frequency, and develop a more consistent brand tone.
Chipotle Mexican Grill is a restaurant chain founded in 1993 with over 900 locations across the US and Canada. It is facing issues with inconsistent and damaged inventory deliveries from suppliers, costing the State College location $70-130 per week. To address this, the team recommends implementing an RFID tracking system that would pay for itself within 11 weeks and improve the delivery and inventory process. The proposed implementation schedule and new process diagram with RFID are also included.
- The document analyzes consumer sentiment towards Chipotle following E. coli outbreaks in late 2015 using data from millions of tweets. It found strongly negative sentiment during the outbreaks that corresponded to falling sales and stock prices.
- Chipotle launched free burrito promotions in early 2016, which correlated with improving sentiment in tweets and a rise in stock prices. However, revenues remained down in Q1 2016 compared to pre-outbreak levels.
- The report predicts Chipotle's revenues will increase in Q2 2016 compared to Q1, as consumer sentiment has recovered to pre-outbreak levels with the scandals now in the past. Sentiment analysis of social media can provide insights into brand and stock performance.
The document provides a historical perspective and current status of dental bonding agents. It discusses how bonding agents have evolved over generations from early calcium ion-based first generation agents with low bond strengths to today's multi-step etch-and-rinse and single-step self-etch adhesives. Current adhesives can achieve bond strengths of 20-50 MPa to enamel and 13-80 MPa to dentin. While newer single-step adhesives offer simplicity, their long-term performance is still being evaluated compared to multi-step systems. Proper technique remains important for clinical success with any bonding agent.
Bạn biết rằng bạn đã đọc một cuốn sách hay khi bạn giở đến trang cuối cùng và cảm thấy như mình vừa chia tay một người bạn. - Khuyết danh -
Được Chia Sẻ Bởi: http://biquyethoctap.com/
Cộng Ðồng Chia Sẻ Bí Quyết Học Tập.
This PowerPoint was used to demonstrate a SWOT analysis of Chipotle.; however, it starts out with the history of the company and branches off into strengths, weaknesses, opportunities, and threats of the firm.
The document summarizes feedback from a questionnaire targeted at girls aged 14-17 about a music video titled "Afterglow 1." Key findings include:
- Respondents identified the genre as pop, fulfilling the creator's goal.
- The most liked aspects were the bright colors and the artist's makeup, especially pink lips.
- Feedback suggested removing concert clips that did not fit the overall narrative and syncing visuals better to lyrics.
- This feedback will help the creator improve the music video for its target audience.
Chipotle Market Potential Analysis Part 1Mollye Peters
One of the projects in my International Marketing class was to take a domestic company and turn it into an international corporation. My group decided on Chipotle as our company. Everyone in the group worked on this project together but I was specifically focused on the criteria charts on slides 6-12.
El documento habla sobre un monstruo de colores que guarda sus galletas favoritas clasificadas por color en frascos, para evitar sentirse mal si se las come mezcladas. Un día se come todas las galletas a la vez y queda confundido, por lo que pide ayuda para cocinar más galletas de gelatina de diferentes colores y volver a clasificarlas.
Bolsonaro e Jean Wealys são candidatos que possuem características diferentes. O documento compara os argumentos e características dos dois candidatos para identificar o que está mudando entre eles.
Chipotle was founded in 1993 and focuses on using high quality, fresh ingredients for its Mexican-inspired menu items like burritos, tacos, and bowls. The document discusses Chipotle's growth over the years from 8 locations in 1996 to over 2,250 restaurants in the U.S. alone by 2016, making it one of the most popular fast casual restaurant chains. McDonald's was an early investor in Chipotle but withdrew in 2006 when Chipotle went public, and the chain has continued expanding its "Food with Integrity" philosophy across the U.S. and internationally.
Chipotle's mission is to provide "Food With Integrity" using high quality, natural ingredients while maintaining affordable prices. Its business strategy focuses on increasing awareness of naturally-raised food, European expansion, supplier relationships, and minimal marketing expenses. Chipotle differentiates itself by making fresh, customizable burritos, tacos, and salads on site daily using natural ingredients. It has over 1,200 locations across North America and continues expanding globally. Financially, Chipotle has low debt, high inventory turnover, and strong returns on investment. However, rising costs may impact profits if not offset. Chipotle faces competition from other fast casual restaurants but maintains competitive advantages through its emphasis on food quality and ethical sourcing.
Create an develop advertising plan for successful restaurant as part of team to include situational analysis, objectives, strengths & weaknesses, budgeting, strategy, execution, and evaluation. Direct responsibility for media plan covering strategy, media assessment, targeted execution, and budget allocation for best engagement with sought after market. (2006)
Chipotle Mexican Grill has experienced strong growth over the past two decades but is now overvalued based on financial modeling. While the company pioneered the fast casual dining segment and has opportunities for expansion, its sales growth is declining. The stock price of $641.66 is too high compared to valuation estimates ranging from $222 to $440, indicating the stock currently poses too much downside risk. For these reasons, the analyst recommends not buying Chipotle stock at this time.
Chipotle has faced brand challenges due to E. coli and norovirus outbreaks affecting sales. The document proposes a brand revitalization strategy targeting health-conscious millennials and working adults. It recommends positioning Chipotle as providing flavorful, healthy food choices fast while emphasizing food quality and safety. The creative brief aims to rebuild confidence by highlighting Chipotle's commitment to sourcing fresh, farm-grown ingredients that are closely monitored.
Marketing PlanThe Company When Chipotle Mexican Gril.docxinfantsuk
Marketing Plan
The Company
When Chipotle Mexican Grill opened its first restaurant in 1993, their idea was to show that food served fast didn't have to be a “fast-food” experience. Today, they continue to offer a focused menu made from fresh, high-quality raw ingredients, prepared using classic cooking methods and served in a unique atmosphere. Additionally, in 2004 Chipotle partner with Loomstate becoming the first non-GMO fast-food restaurant that cared for the environment. Since then, Chipotle has committed to find the best ingredients in the market. They source as many high-quality ingredients as they can from local and family farmers who are committed to sustainable agriculture. Because of Chipotle’s success many restaurants are trying to recreate the same unique experience commonly referred to as “fast-casual.” With more than 1500 restaurants, Chipotle has remained dedicated to their mission of “Food with Integrity.”
Chipotle Mission Statement
Food With Integrity. Serving high quality food while still charging reasonable prices is critical to our vision to change the way people think about and eat fast food. As part of our Food With Integrity philosophy, we believe that purchasing fresh ingredients and preparing them by hand are not enough, so we spend time on farms and in the field to understand where our food comes from and how it is raised. Because our menu is so focused, we can concentrate on the sources of each ingredient, and this has become a cornerstone of our continuous effort to improve our food.
SWOT Analysis
As long as Chipotle stays true to their mission of Food With Integrity, the company will continue to be profitable. However by evaluating the strengths, weakness, opportunities, and threats to create a strong marketing campaign the company can continue to expand and grow.
Strengths
Chipotle is as strong as ever. Chipotle has been in business over 20 years and has improved its craft becoming an industry leader. The “Food with Integrity” mission is seen in everything Chipotle does and really it could be adapted to Chipotle as a whole, for instance being “Business with Integrity.” Not only is the food fresh and of the highest quality, but the packaging, napkins, and bags are all made of recycled material, which helps to conserve the environment and fits into Chipotle’s business model. One of the reasons that the experience at Chipotle is very consistent across the board is because the company owns all the stores. Franchising could help the company expand faster, however it would not be able to maintain control over all operations of individual locations. These inconsistencies in the dining experience that Chipotle wants to offer their current and potential customers could be affected. The fact that Chipotle owns all of their locations also benefits the employees, which in turn benefits the customers, and ultimately the company. This helps Chipotle hire employees that they feel fit into their culture. Also, they have i ...
P13-3AWHITLOCK COMPANY Income Statement For the Year Ended N.docxalfred4lewis58146
P13-3A
WHITLOCK COMPANY
Income Statement
For the Year Ended November 30, 2015
Sales revenue
$7,700,000
Cost of goods sold
Beginning inventory
$1,900,000
Purchases
4,400,000
Goods available for sale
6,300,000
Ending inventory
1,400,000
Total cost of goods sold
4,900,000
Gross profit
2,800,000
Operating expenses
1,150,000
Net income
$1,650,000
P13-7A
WHITLOCK COMPANY
Income Statement
For the Year Ended November 30, 2015
Sales revenue
$7,700,000
Cost of goods sold
Beginning inventory
$1,900,000
Purchases
4,400,000
Goods available for sale
6,300,000
Ending inventory
1,400,000
Total cost of goods sold
4,900,000
Gross profit
2,800,000
Operating expenses
1,150,000
Net income
$1,650,000
Running head: CHIPOTLE 1
CHIPOTLE 2
Chipotle
Students Name
Student ID
Professor’s name
Date of Submission
IV. Cost of Production
There are many forms of costs incurred by Chipotle although the major ones are three. The operating costs includes of food costs, labor costs, and operating costs that include the payments to the management and machinery. The restaurant company has efficiently and effectively used to ensure that the company has remained at the peak in terms of profitability. Most of the company’s cost has been on the foods that are being used. In fact, the cost of food in the year 2013 accounted 33.40% that was equivalent to $ 1.1 billion of the revenues that were collected. The key ingredients that are being used have been increasing in cost rapidly. Another form of cost that the company has been incurring is the labor cost. Over twenty-three percent of the company’s revenues are incurred in catering for labor cost. This amount was estimated to be seven hundred and thirty million dollars in 2013. Advertising costs and marketing expenses by the firm have accounted for ten percent of the total revenues generated. Effective use of these costs has led to a tremendous growth in the profitability of the firm. The profitability has been increasing over the recent years, and the growth in 2013 was twenty-six percent.
The financial records of the Chipotle reveal that the company has no debt despite the costs that have been increasing. The fixed costs that the company was initially incurring in the rented stores have reduced as a result of the company’s indulgence in the construction of their shops. Labor costs have contributed to the success of the firm since the firm has been hiring qualified and skilled personnel. The firm has been engaging in Research & Development to improve the profitability of the firm. However, this has been impacting the firm positively and in a way has contributed to the success of the firm operating in the America and Europe continent (Wy.
This document provides an analysis of the financial statements and valuation of Chipotle Mexican Grill. Key points include:
- We recommend a Sell position based on three valuation models, with a price target of $175.11, significantly below the current share price of $318.07.
- Sales growth is forecasted at 4.36% annually for the next three years based on an estimated 140 new store openings in 2018 and new stores generating 75% of existing store sales on average.
- Profit margins have declined in recent years due to increased expenses from promotional programs, lawsuits, and planned store renovations. Margins are expected to continue struggling going forward.
- Competitively, Chip
Chipotle Mexican Grill is a fast casual restaurant chain specializing in burritos, tacos, and salads. The document analyzes Chipotle's business model, growth drivers, competition, and risks. Key points include that Chipotle focuses on "Food with Integrity" using sustainably sourced ingredients, aims to increase revenue through new store openings and comparable store sales growth, and faces risks from rising costs and macroeconomic trends that could impact customer spending.
- PepsiCo owns several restaurant brands including Pizza Hut, Taco Bell, and KFC. It is evaluating acquiring two companies: Carts of Colorado, which produces carts for restaurants, and California Pizza Kitchen, a casual dining pizza restaurant.
- Acquiring California Pizza Kitchen could provide opportunities to expand PepsiCo's market share in the growing casual dining segment. It also has a culture of operational success that could benefit Pizza Hut. However, integrating it fully may risk cannibalizing Pizza Hut sales.
- Acquiring Carts of Colorado could create backward integration benefits but also risks if the cart technology is not managed well, as it is not PepsiCo's core business. On balance, acquiring California Pizza
Chipotle operates over 1,350 fast casual Mexican restaurants across the United States and internationally. While the company has experienced strong growth in revenues and earnings, some analysts argue Chipotle may be nearing maturity with margins and revenue growth stabilizing. Using a discounted cash flow model, the fair value of Chipotle's shares depends on future growth assumptions, but some feel the current stock price of $298 reflects a high premium compared to the company's fundamentals and growth outlook.
Focus on research tools and techniques in marketing communications: product research, competitive analysis, audience and segmentation research, communications testing and media research. Emphasis on design, implementation, analysis and reporting of market research studies.
Chipotle Crisis Communication AnalysisJulian Gross
Chipotle has experienced E. coli and norovirus outbreaks in 2015-2016 that sickened hundreds and caused a drop in sales and stock prices. The company must rebuild trust with customers and investors by emphasizing its food safety efforts through social media, transparency with the media, and highlighting its commitment to food integrity. Measuring the effectiveness of these communications strategies through surveys, social media analytics, and sales benchmarks will help Chipotle assess its progress in restoring its brand.
Running head PEPSI VS. COKE CASE STUDY .docxtoltonkendal
Running head: PEPSI VS. COKE CASE STUDY 1
PEPSI VS. COKE CASE STUDY 2
Pepsi vs. Coke Case Study
Student’s Name
Institutional Affiliation
Pepsi vs. Coke Case Study
Part A
The Worldwide Socioeconomic and Political Environment
Understanding the external environment in which a company operates is crucial for any top management. For instance, the global socio economic and political environment presents many challenges and opportunities for many companies (Wetherly, & Otter, 2014). The demographic and culture of the worldwide market varies. For this reason, the importance of determining what to sell, where, how much, and how to market is increasing. For example, the worldwide market is currently more focused on healthy products. Therefore, companies have to respond to these needs in all aspects. In addition, it has also been noted that social responsibility of a company affects the worldwide image of a brand. The global economic challenges might also affect the liquidity and financial performance of companies, for instance, soft drink and beverage manufacturers such as Coca-Cola Co. and Pepsi Co. In addition, the price of imports, exports, and exchange rates might also affect many industries such as soft drink manufacturers (Wetherly, & Otter, 2014). Finally, the economic environment affects how consumers spending powers, thereby, having an impact in many sectors of the economy. It is also important to note that global political environment presents various risk to many companies. For instance, political instabilities in some parts of the globe and changes in established laws and regulations might prevent companies such as Coca Cola and Pepsi from distributing drinks.
The Domestic Environment
The domestic environment in which Coca Cola Co. and operates presents many challenges and opportunities at the same time. For instance, the strong democratic setup in the US and effective rule of law is considered fair and transparent by most companies. However, the US is also under continuous threat because of the interventionist policies regarding war on terror. In addition, the domestic environment of Pepsi and Coca Cola companies has a well-developed economic system that is supported by many service and manufacturing companies. Like some developed countries, the US is faced with the problem of the aging population. This can contribute to major labor shortage more so for companies operating in the US market. However, with a superior education system, the US has one of most highly trained and skilled employees (Wetherly, & Otter, 2014). However, rising racial bigotry is not only a concern for the government but also for major corporations such as Coca Cola and Pepsi that rely on political stability to sell products. Finally, innovation and technology are considered by m ...
This document provides a summary of key trends in the consumer foodservice industry in Colombia between 2006-2011 and forecasts for 2011-2016. It finds that categories like specialist coffee shops, bakery fast food, full-service restaurants and home delivery saw strong double-digit growth. Players are adapting formats to increase flexibility and competition is intense. While independents dominate outlets, chains saw better growth through expanding franchises and small snacks. The industry is expected to see continued strong transaction and sales growth supported by Colombia's positive economic prospects.
The document provides an analysis of Colgate's global rollout of its new toothpaste brand Colgate Max Fresh (CMF) in China and Mexico. It finds that Mexico better adapted the launch to local consumer needs compared to China, resulting in higher profits for Mexico. Specifically, Mexico's marketing strategies were more aligned with the US strategies with minimal additional advertising costs. This led to substantial operating profits in Mexico. For long term global success, Colgate should standardize adaptations where possible across countries with similar cultures to reduce complexity. Overall, localized adaptations are necessary for success but added complexity can be good or bad depending on how it is managed from a global perspective.
Colgate Palmolive Kitchen Entrée mkt SLIDE PLANDavid Wong
Colgate plans to launch a new frozen food product called Colgate Kitchen Entrees. They will enter the large and profitable frozen food market. Their target markets are housewives and families as well as college students. Their marketing strategies will include promotional events at colleges and restaurants. They aim to differentiate themselves by focusing on quality, variety, and innovation. Their goals for the first year include increasing global sales by 25% and gaining market share from competitors like Nestle and Heinz. They will allocate most of their marketing budget in the first year to promotions in the third and fourth quarters.
This document presents a marketing strategy for Coca-Cola in China. It outlines Coca-Cola's mission statement, objectives, consumer segments, and analyses including PESTLE, Porter's Five Forces, BCG matrix, and critical success factors. The strategy focuses on increasing sales and market share in China through local manufacturing and a new product targeting a new consumer segment. Key factors for success include brand affinity, taste, price, health awareness, and promotions.
Unit 5 wholefood .docxby blanca luz benavidez submissioojas18
Whole Foods Market Inc. is a leading grocery store chain focused on organic and natural foods. It has approximately 450 store locations. Whole Foods' strengths include its brand reputation and niche focus on high-quality natural products. However, the company faces challenges from lower-cost competitors and needs to adapt its operating model to remain competitive as the grocery industry changes. One strategy has been the launch of its 365 store brand aimed at more price-sensitive customers.
2. Chipotle Cole Howie
EXECUTIVE SUMMARY
INDUSTRY ANALYSIS
The fast-casual industry features a variety of forces that require thorough analysis in
order to better understand its market. As the fastest growing segment of the restaurant industry,
this market is exposed to high environmental forces, mainly weather and climate changes that
can affect company’s supply chain. The market is also subject to moderate economic (including
changes in disposable income for the higher-quality goods) and social trends (changes in
popularity and lifestyles). The fast-casual industry faces stiff competition directly from strong
rivals and a depth of countless substitutes, with growing supplier power. This industry segment
will be driven chiefly by its long-term growth rate, changing consumer lifestyles, product
innovation, and further globalization. Companies in this segment will find success in premier
food quality, product customization, high throughput, and strong employee—and thus skill—
retention. Competitors in the fast-casual market face severe competition from direct competitors
and substitute eateries and options. The ability to deliver high-quality, differentiated products
will allow a company to find unique success above the rest of the market.
3. Chipotle Cole Howie
COMPANY OVERVIEW
Upon the understanding of the fast-casual industry as a whole, we can now focus in on
the major player in the Mexican fast-casual segment: Chipotle. Chipotle is a dominating leader in
the Mexican fast-casual segment, with almost $2 billon more in sales revenue than its closest
competitor. Although Chipotle has impeccable revenues and gross, operating, and net profits,
there is concern for a few profitability ratios. Chipotle shows strong growth in its cost of goods
sold, with relatively small (if not stagnant) gross, operating, and net margins. This could be a
sign of high costs that need to be reigned in. Nonetheless, Chipotle is in a suitable position to
take on and pay off any debt it may wish to, shown in their strong sustainability indicators.
Chipotle controls a great deal of valuable resources and capabilities, but none of which
that cannot be imitated with enough financial support, and few that are exploitable by the
restaurant chain. Compared to competitors, Chipotle does lead the pack with an 8.0 in the
weighted competitive strength analysis. Its lead is, however, thin with its two closest competitors
within 0.4 points of Chipotle. This is most likely attributable to the excessive similarities the top
three share with each other. These qualities include high quality ingredients and customization,
which have led to not only Chipotle’s, but its competitor’s, success.
Chipotle’s large target customer base and high quality products direct its broad,
differentiated approach in the Mexican fast-casual market. Although Chipotle has seen great, fast
success in its limited yet customizable Mexican menu, its competition has taken away the
uniqueness of the Chipotle model while also featuring high-quality ingredients, customization,
and cafeteria-style assembly lines. Due to competitive parallels, it may be time for Chipotle to
introduce a new product to its market to further differentiate itself and grow. Being a part of the
fastest growing segment in the restaurant industry, Chipotle is in a perfect position to exploit
growth opportunities with strategies that promote further profitability and sustainability.
4. Chipotle Cole Howie
STRATEGIC ISSUES
There are two major issues Chipotle faces as a player in the Mexican fast-casual market
segment: volatile supply costs and deficient product differentiation. Through the company’s
dedication to “Food with Integrity”, Chipotle commits itself to working with organic suppliers
who can supply “raw material” meeting Chipotle’s high standards. Organic suppliers have to
incur higher costs by growing and raising animals naturally that are accompanied with lower
yields, lower weight gains, and longer growth periods. Organic suppliers also are faced with
increased demands not only from Chipotle, but from competitors and substitutes (i.e.
supermarkets and fine-dining establishments). While Chipotle cannot directly lower a supplier’s
operating costs, Chipotle expects the price volatility to be controlled in the long term as the
demand for organic suppliers will be filled with new farmers entering this supplier market.
The second, and easier, issue Chipotle faces is due to its lack of product differentiation
from its strongest competitors. Chipotle, with its closest competitors Qdoba and Moe’s, all
feature similar product offerings and even identical service styles: walking through a fast-paced
assembly line with workers completing your order before your eyes behind the assembly bar. As
seen in the weighted competitive strength analysis, Chipotle’s leading margin is becoming razor
thin due to fierce competition with rivals and substitutes. No, the tastes of Chipotle and its direct
competitor’s products are not the same, however aside from taste, the three companies seem
virtually the same on paper. With the high potential for growth within the fast-casual segment,
allowing a competitor to pounce on growth opportunities first serves as a major threat to the
sustainability of Chipotle’s current strategy going forward. Addressing this issue promptly will
save Chipotle as the leader in its segment and promise sustainability in the market.
5. Chipotle Cole Howie
ROBUST OPTIONS
1. Market Penetration
All three major players of the Mexican fast-casual market most likely face the same cost
issues from organic farmers that Chipotle faces. To grab more of the market share in the current
market, Chipotle could engage in different supply chain practices with more futures contracts
with farmers to hedge against unfavorable, volatile supply costs. With this practice, Chipotle
should then offer value discounts for certain products, or implement a value menu such as those
found in quick-service restaurants. This allows for the fast-casual chain to better compete with
not only direct competitors, but with substitutes.
2. Product Development
As mentioned before, it is vital for Chipotle to begin to differentiate its brand from its
closest and most similar competitors. Chipotle can do this by developing new product lines, such
as vegetarian options among other countless opportunities, to serve to its current customer base.
This could potentially even attract new customers and build upon Chipotle’s existing market
share.
3. Market Development
Chipotle has experienced unprecedented and fast growth and success in its fast-casual
model. While the restaurant can be found in 43 states and 4 different countries, Chipotle could
begin expanding its geographic presence in existing territories and new ones. Globalization is a
key driving force of the restaurant industry that can help Chipotle sustain its leadership in its
market segment while gaining new consumer.
6. Chipotle Cole Howie
RECOMMENDATION
It is recommended that Chipotle practice the product development growth option by
differentiating its base product offering from its excessively similar competitors. Even though
Chipotle has the most favorable revenues of the three Mexican fast-casual leaders, a neutral and
rational consumer may find no differences in the three competitors, hurting the brand awareness
of all companies. It is vital that Chipotle be the first-mover with this strategy because, if Qoba
for example launches a new product line that separates itself from Chipotle, this could attract
many of Chipotle’s once-loyal customers to experience Qdoba’s new venture (as seen through
Taco Bell’s product innovation). It is extremely important for Chipotle to begin differentiating
itself through the implementation of new innovative products. Offering a product that is more
diverse could allow the new product to be more immune to the forces that plague the existing
products (i.e. dairy products are affected in different ways than produce products) thus allowing
a decrease in risk through product diversity.
7. Chipotle Cole Howie
IMPLEMENTATION STRATEGY
Chipotle should first and foremost spend adequate time in research and development
before launching a product it believes will show differentiated success. This R&D would include
studies of sustainable mass production and distribution as well as favorability among focus group
consumers. Once a favorable product is decided on and developed sufficiently, it should be
tested out at select locations domestically. If the new product is show to have success among its
audiences and is believed to show similar success nation-wide, it should be implemented at all
domestic locations. Prior to the mass product launch, the new product should be marketed
nationally to build hype and attract consumers. Advertisements have the opportunity not only to
market the new product, but to remind consumers of Chipotle’s superior quality over all other
competitors. After a national launch, the company can decide of this is a product that will be
limited, seasonal, or can be sustained as a permanent menu fixture based on its performance.
8. Chipotle Cole Howie
JUSTIFICATION
Chipotle and its closest competitors (Qdoba and Moe’s) all feature similar product
offerings. All three offer customization of burritos, burrito bowls, tacos, and salads through
choices of meats, vegetables, and extras (i.e. sour cream).
Taco Bell, a once failing Mexican quick-service chain, was able to revitalize its brand
through the addition of new, innovative product lines. Where the chain once saw declining sales
and was forced to shut down many of its doors, the introduction of bold ideas –the Doritos Locos
Taco, the Cantina Bell menu, and breakfast expansion– allowed Taco Bell to become the leader
in the domestic Mexican quick-service market segment. Taco Bell’s product development
resulted in increased customer traffic and sales, and promised a better outlook for the company
with expected sales growth of 6.8% in 2012. This, compared to the previous 1.5% sales growth
with a 0.7% compound annual growth rate, sends a rather encouraging message to companies
seeking to regenerate their brands.
For example, if Chipotle wanted to introduce an ice cream line, it could work out
contracts with organic dairy farmers to buy milk and cream from the suppliers at fixed rates in
futures contracts. If Chipotle was able to produce one gallon of fresh ice cream for $3.00, with
the average ice cream purchase being one scoop (0.5 cups, or 3/100ths of a gallon) selling for
$2.60 per scoop, Chipotle can earn ~$82.5 per gallon of ice cream. The net profit from a gallon
of ice cream will be $79.5. If one store is able to sell at least 2 gallons of ice cream per day, each
store will net $159 a day in ice cream sales. If this is accomplished at all 1,595 chains, the
company as a whole will net $92,565,825/year in ice cream sales (this being a conservative
projection). Although this would be a small fraction compared to the rest of its existing operating
profits, it presents a great area for growth with potential for a single store to sell many more
gallons of ice cream a day with enough marketing and product awareness. This again allows
Chipotle to establish a new product line different from its competitors and attract new consumers
to the newly differentiated leader of the Mexican fast-casual market segment.
9. Chipotle Cole Howie
A. Dominant Economic Characteristics
Industry Size
The restaurant industry as a whole was projected to become a $683 billion industry by
2014 with roughly 990,000 restaurants in the country. This broad market would also feature a
compound average growth rate of 3.9% since 2010. Many American restaurant chains push for
globalization, where the global restaurant industry, and its individual markets, is logically much
larger. Within the fast-casual segment of this industry, this market represents less than 2% of the
restaurants in the country, yet make up 5% of the industry’s sales. This segment is the fast-
growing the industry, with increased sales and traffic through these establishments. The
restaurants typically are perceived to have an enhanced quality of food and service than quick-
service competitors. The more-specific Mexican fast-casual establishments are controlled mostly
by three restaurant leaders and may be saturated with other local and independent diners.
Competition
Regardless of specific segment, everyone in the restaurant industry will face intense
competition no matter where they are. Studies show that 85% of consumers eat at fast-casual
places at least once a month. This segment is expected to grow and exhibit more competition
over time, especially as consumers trend towards healthier, yet reasonably priced, options.
Expansion
Restaurants in Mexican fast-casual (and general fast casual) are in a race to expand the
furthest in grabbing as many customers as possible, turning them into brand-loyal ambassadors.
Companies hope to operate in as many regions as possible domestically, in hopes that their
popularity can carry them abroad (most popularly beginning in Europe).
Opportunities
• Opportunity lies in establishing a company in this fast-growing market segment
Threats:
• The room for great growth in this segment leaves a void that competitors may fill faster
and better than you
This industry will find increased competition as it continues to grow. This growth
presents itself as both an opportunity for companies and a threat for those that are lagging behind
in the industry.
10. Chipotle Cole Howie
B. PESTEL Analysis
Political Minimum – Affected by typical factors any industry faces; those with a
global presence are subject to international policy.
Economic Moderate – As a normal good in an industry with great inferior good
competition, sales in the fast-casual market may see decline in unfavorable
economic conditions.
Sociocultural High – Many companies in this market seek to get consumers thinking about
the quality of ingredients in foods made and sold to them. If consumers catch
onto the trend of being conscious of quality, this may bolster the fast-casual’s
position of offering better quality food.
Technology Minimum – The only technology that could help this market is in online
sales.
Environmental High – Restaurants depend on farmer’s and rancher’s supply of produce and
livestock to serve their customers. These farmers in turn rely on favorable
weather conditions to get maximum yields to sell.
Legal Moderate – Companies may see changes in regulations and standards set by
different agencies, such as the FDA.
Opportunities:
• Exploit the consumer trend of seeking local, natural, and/or organic food
Threats:
• Economic downturns may result in lower sales
• Unfavorable weather/climate can temporarily hurt company costs
The PESTEL Analysis does not reveal many strong, negative factors that can affect the
normal goods in this industry’s macro-environment. The most concerning external factor here
lies in environmental issues (mainly weather).
11. Chipotle Cole Howie
C. Five Force Analysis
Rivals Moderate – Competition among rivals is certainly present, and will strengthen
in time as the fast-casual market continues to grow. Mexican fast-casual
exhibits concentrated power among a select few, non-differentiated places.
Potential
Entrants
Moderate – Becoming a national competitor in fast-casual is difficult, yet not
impossible, due to high entry costs. This segment has a lot of growth
potential, leaving room for competition. Within Mexican fast-casual, the
chances of a new competitor to rise are extremely low, with power vested in
several established brands.
Substitutes Strong – There are countless substitutes to eating fast-casual, such as quick-
service, full-service, and even eating at home.
Supplier
Power
Moderate – Many organic suppliers are finding their produce in high demand
and see constraints in their supply chain. Further demand pressures will give
suppliers more power until the demand for organic farmers is filled with new
entrants.
Buyer
Power
Moderate – Depending on how peculiar a restaurant wants to be with who it
will buy from, it could give itself less power if it limits itself to certain
suppliers with certain standards. If it is able to be versatile, it can gain
bargaining power threatening to take business elsewhere.
Opportunities:
• N/A
Threats:
• Room for increased competition
• Variety of substitutes
• Limited buying power due to organic suppliers in high demand
Currently the organic farmers necessary for fast-casual restaurants are facing higher
demand, with already-high costs for their supplies. It is possible that other farmers see
opportunities in organic farming, and saturate this market to drive down supply costs for
restaurants. Restaurants in the fast-casual segment face stiff competition from many substitutes
and rivals.
12. Chipotle Cole Howie
D. Driving Forces
Changes in Industry
Long-Term Growth Rate
As this industry segment continues to grow, it will put pressure on
the suppliers, causing growth in the supplier’s markets to meet the
demands of the fast-casual market. The growth of this market will
affect many factors both internally and externally.
Changing Lifestyles Consumers are drifting towards healthier options. Fast-casuals are
depending on this to sustain their growth, hoping their products
becoming more enticing.
Product Innovation The industry has proven that innovation in products can help
rejuvenate and strengthen a hurting company. Innovation will help
differentiate one restaurant from the other and attract neutral
customers.
Increasing Globalization Established companies continue to seek global power of their
segment, promoting a trend for restaurants to continue to grow
outside of their domestic limits.
Opportunities:
• Take advantage of the continued growth and lifestyle shifts
• Continuously research innovative opportunities that may attract new consumers
• Enter new global markets where feasible
Threats:
• Competitors that lead new innovation have better advantages
This growing market is built on consumers seeking healthier quality foods where
restaurants must differentiate themselves from their competitors. Established restaurants will
take advantage of the room for growth in this market and success will be found in expansion
domestically and internationally.
13. Chipotle Cole Howie
Value (Quality/Price) E. Strategic Map
Opportunities:
• N/A
Threats:
• Lack of differentiation
• Substitutes beginning to blur the lines of restaurant segments by offering products with
similar quality
There are three traditional players in the Mexican fast-casual segment: Chipotle, Qdoba,
and Moe’s Southwest Grill. Taco Bell has been included in the study because of their product
innovation and inclusion of higher quality products. This traditional substitute changes the game
becoming a direct competitor in the fast-casual market.
Geographic Coverage
14. Chipotle Cole Howie
F. Key Success Factors
Food Quality Customers in this segment have higher standards of quality compared to the
quick-service market. They also pay more for better quality, as this factor is
the basis of success in this segment.
Customization Even if the menus are limited, the ability to customize your purchase makes
the restaurant more customer-oriented.
Throughput Customers want instant gratification with their food “without the ‘fast-food’
experience”, even if they aren’t in a rush. This keeps customers returning.
Employee
Retention
Having a trained staff does no good if you have big turnover. Programs and
policies that make it hard for employees to leave are crucial in keeping
skilled workers at their stations.
Opportunities
• Improve efficiency to keep customers
• Implement employee-focused programs and policies to deter turnover
Threats:
• High costs with high customization
• Higher quality is the foundation of fast-casual in competing with lower fast-food chains.
Companies that seek to compete with fast-food must be able to match the service time of
the quick-service market in a fresher environment.
15. Chipotle Cole Howie
G. Financial Analysis
Indicator
Fiscal Year
Growth CAGR
2013 2012 2011 2007
Revenues $3,214,519 $2,731,224 $2,269,548 $1,085,782 18% 20%
COGS $1,073,514 $891,003 $738,720 $346,393 20% 21%
Gross Profit $2,141,005 $1,840,221 $1,530,828 $739,389 16% 19%
Gross Margin 67% 67% 67% 68% -1% 0%
Operating Profit $532,720 $455,865 $350,562 $108,183 17% 30%
Operating Margin 17% 17% 15% 10% -1% 9%
Net Income $327,438 $278,000 $214,945 $70,563 18% 29%
Net Margin 10% 10% 9% 6% 0% 8%
Current Ratio 3.344 2.925 3.183 2.754 14% 3%
Debt to Assets 0.234 0.253 0.267 0.222 -7% 1%
Debt to Equity 0.306 0.339 0.365 0.285 -10% 1%
Times Interest
Earned
304.24 250.48 -409.06 18.59 21% 59%
Equity Multiplier 1.306 1.339 1.365 1.285 -2% 0%
EPS $10.58 $8.82 $6.76 $2.13 20% 31%
*$s in 000s
Strengths:
• Strong revenue growth
• Strong growth in gross, operating and net profits
• Decreasing debts
• Strong times interest earned
• Equity multiplier greater than 1
Weaknesses:
• Increasing COGS
• Stagnant gross, operating, and net margins
Chipotle displays great growth in revenue as well as gross, operating and net incomes.
However, their COGS are growing just as strongly with all profit margins relatively small. This
proves Chipotle’s requirement to control all costs to find better margins. Other financial
indicators show declining debts, strong ability to pay them off, and less stockholder control with
higher equity multipliers.
16. Chipotle Cole Howie
H. VRINE Analysis
Valuable Rare Inimitable Nonsubstitutable Exploitable
Customization X X X
High-Caliber
Workspace
X
High
Throughput
X X X
High Quality
Foods
X X
Distribution
Partners
X X
Employee
Promotion
Opportunities
X X
Promotional
Festivals
X X
Film
Marketing
X X
Strengths:
• Several valuable, exploitable, and unique resources
Weaknesses:
• All resources and capabilities can be imitated or substituted, many not exploitable
All of Chipotle’s resources and capabilities are valuable, yet few are exploitable and none
are inimitable. Competitors can do the same things as Chipotle with enough financial support
and desire. Chipotle could benefit from rarer and inimitable resources and capabilities.
17. Chipotle Cole Howie
I. Weighted Competitive Strength Analysis
Indicator Importance
Weight
Chipotle Qdoba Moe’s Taco Bell
Strength Weighted
Score
Strength Weighted
Score
Strength Weighted
Score
Strength Weighted
Score
Food Quality 0.3 8 2.1 7 2.1 7 2.1 5 1.5
Customization 0.3 9 2.7 8 2.4 8 2.4 6 1.8
Throughput 0.3 8 2.4 8 2.4 8 2.4 9 2.7
Employee
Retention
0.1 8 0.8 8 0.8 7 0.7 3 0.3
Totals 1.0 8.0 7.7 7.6 6.3
Strengths:
• Leading in all key success factors
Weaknesses:
• Margin of victory in KSF is thin
Although Chipotle is a leader in all key success factors, its margin of victory is thin. This
close race gives competitors a fighting chance to take the lead and cut into some of Chipotle’s
market share.
18. Chipotle Cole Howie
J. Go-To-Market Strategy
Chipotle’s strategy in the market is a broad, differentiated approach. The restaurant chain
targets any type of food consumer (everyone) within Chipotle’s geographical ranges. Chipotle is
very benefits-driven, focusing on the quality of their ingredients and phenomenal, quick service.
They try to differentiate themselves with their Mexican offerings through a limited menu with
customization possibilities.
Strengths:
• Broad targets in food industry allow great opportunities for potential new consumers
Weaknesses:
• They must differentiate themselves within the Mexican fast-casual segment
While Chipotle has found great success through it’s current strategy and is a leader in its
segment, there is still room to improve through further differentiation among competitors.
19. Chipotle Cole Howie
K. SWOT Analysis
Strengths:
• Strong revenue growth
• Strong growth in gross, operating and net
profits
• Decreasing debts
• Strong times interest earned
• Equity multiplier greater than 1
• Several valuable, exploitable, and unique
resources
• Leading in all key success factors
• Broad targets in food industry allow great
opportunities for potential new consumers
Weaknesses:
• Increasing COGS
• Stagnant gross, operating, and net margins
• All resources and capabilities can be
imitated or substituted, many not
exploitable
• Margin of victory in KSF is thin
• They must differentiate themselves within
the Mexican fast-casual segment
Opportunities:
• Opportunity lies in establishing a
company in this fast-growing market
segment
• Exploit the consumer trend of seeking
local, natural, and/or organic food.
• Take advantage of the continued growth
and lifestyle shifts
• Continuously research innovative product
opportunities that may attract new
consumers
• Enter new global markets where feasible
• Improve efficiency to keep customers
• Implement employee-focused programs
and policies to deter turnover
Threats:
• The room for great growth in this segment
leaves a void that competitors may fill
faster and better than you.
• Economic downturns may result in lower
sales.
• Unfavorable weather/climate can
temporarily hurt company costs.
• Variety of substitutes
• Limited buying power due to organic
suppliers in high demand
• Competitors that lead new innovation
have better advantages
• Substitutes beginning to blur the lines of
restaurant segments by offering products
with similar quality
• High costs with high customization
• The most debilitating weakness of Chipotle is the increased growth of its costs. Without a
way to reign in these costs, Chipotle may face declining revenues and profits.
20. Chipotle Cole Howie
K. SWOT Analysis (cont.)
• One major threat to Chipotle and the Mexican fast-casual segment is the substitute
markets, specifically as substitute restaurants beginning to match the resources and
qualities of Chipotle (i.e. Taco Bell).
• A second major threat to the whole segment is unfavorable weather and climate affecting
their organic suppliers, who already face pressure with massive demands.
• An opportunity that other companies have taken advantage of is implementing new
innovative food products. This can rejuvenate customers that get weary of the “same,
old” product offerings.
Ø This issue most likely is the greatest issue facing the company’s growth, profitability,
and/or sustainability in the next five years.
• Another opportunity for Chipotle is global expansion.
21. Chipotle Cole Howie
L. Growth Strategy
Chipotle aims to add 180 to 195 new restaurants in 2014, with a large majority of those
being free-standing buildings (opposed to strip center placement). They also plan to completely
remodel many of their oldest existing restaurants in hopes to invigorate the cultures of those stores.
In regards to Chipotle’s CEO’s new ventures with ShopHouse Southeast Asia Kitchen and Pizzeria
Locale, it is not clear how these new companies are structured, nor if Chipotle acts as a parent
company for the two new fast-casual establishments. If true, this would be a great growth
opportunity for the Chipotle company and for the fast-casual segment as a whole. As Chipotle
grows, along with the rest of its market, the company anticipates a dissipation in price volatility
and shortages in the long term, prompting more growth for Chipotle.