Case Analysis on “Steve Ellis-Promoting 'Food with Integrity”

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Case Analysis on “Steve Ellis-Promoting 'Food with Integrity”

Steve Ells, the founder of Chipotle Mexican Grill (CMG), with US$165,000, started the first restaurant in 1993 initially as a resort to raise funds for his full-scale restaurant which had always been his passion, although CMG was not the founder’s favorite brainchild, it made the survival and went through a rapid growth in the following few years. By 1997, CMG had a total of 14 restaurants which generated annual sale of US$14 million. At the end of the 90’s, McDonalds’ investment injection and it’s supplier and distribution system speeded up the expansion of CMG. In 2006, with more than 530 restaurants across US, CMG generated revenues of US$800 million and also in that year, CMG’s first IPO is offered and raised 100% at the first day. 2008 has also been big year for CMG, not only the first restaurant in Canada is opened; it also had an on-line ordering launched. CMG restaurant expanded outside America in 2009. CMG, as a sustainable group, has not only captured the attentions of Mexican grill food customers’ attentions, but also delivered its “Food with integrity” value. This development has been a result of a combination of details such as the use of organic ingredients, customized service, sustainable restaurant design, marketing strategy and CMG’s company culture. At the end of the last decade, CMG was constantly emphasizing more and more and energy consumption reduction, organic ingredients. Although the company has made great achievements with respect to sustainability, critics on high price, high calories, and labor right violation had been the concerns for CMG.

The strength of CMG is quite obvious, first of all, most of the ingredients are organic in the restaurants of CMG, and CMG is in the leading position of providing the best food in fast food industry. Secondly, with less than only 20 ingredients, CMG provides up to 6000 different kinds of product varieties according to customer’s...
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