Chipotle

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Sec. 002 Team 1|
GB 214 Operations Analysis: Chipotle Mexican Grill
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Assignment 3: Supply Chain|

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1. Major Components/Inputs of the Product & Suppliers
Chipotle uses several suppliers when ordering and receiving their food products.  Chipotle’s main objective is to provide food with organic and naturally grown backgrounds.  Because of these values, Chipotle prides itself in using suppliers that follow their guidelines of “food with integrity” structure, by meeting the requirements and goals for food safety, animal welfare, sustainability, and social accountability.1

Chipotle’s customer service manager, Shannon Kyllo, stated in her email that the company continuously changes its suppliers to source the best ingredients and also provided a list of their vegetable and dairy product suppliers. Calavo growers, Index Fresh and Mission Avacados supply Avacados to Chipotle, and their Romaine lettuce and cilantro suppliers are Taylor farms and Church Brothers. Daisy and Smith Dairy supply Chipotle with Sour Cream and the company gets its supply of cheese from Meister Cheese, Petaluma Cheese and Glanbia.2 Coca-Cola is Chipotle’s supplier for beverages and has had this contract since McDonalds were Chipotle’s main investors.3 Also, the Mcilhenny Company supplies Tobasco as a condiment for Chipotle.4 The industry leaders in Fast-food restaurant kitchen appliances are Southbend, Globe, Frymaster, Blodgett, Food Service Warehouse and Insigner. These companies are the top players who supply kitchen appliances to the major fast-food Chains, like Chipotle.5 2. Type of Supply Chain and Services

Chipotle’s supply chain is unique from other fast casual restaurants and service firms, and does not have a set traditional supply chain. Of the four main supply chains, Chipotle’s supply chain resembles the Assemble-To-Order (ATO) supply chain the closest. This is because the customer has complete freedom of what ingredients go into their burrito/bowl/salad/etc., but only with the ingredients that are behind the counter. So in that case, there is not complete freedom in designing a meal, but the customer can choose and amount of ingredients to be included in their food item. However, this is not set in stone, for their supply chain also contains elements of other supply chain methods, such as the Build-To-Order (BTO) supply chain, for the customer has some opportunity in the customization of their product (meal), but are limited to the design parameters (set ingredients) set by the firm. The stages of Chipotle’s supply are fairly simple. It starts with the acquisition of the raw materials (ingredients) that are shipped to one of their 22 independently owned distribution centers.6 These ingredients come from within a 350 mile radius of the distribution center. The ingredients are then shipped out to the restaurants, where all of the ingredients are prepared in-house with the exception of the barbacoa and the beans. Once the ingredients arrive at the restaurant, they are prepared and placed out ready to be made into burritos/bowls/salads/etc. When a customer comes to a Chipotle, they simply wait in line, then once at the counter, go down the assembly line of ingredients and chose which specific ones they want to include in their meal. When they are finished constructing their item, they pay the cashier and either take their meal to-go or have a seat in the dining area in the restaurant.7 3. Supply Diagram

(See Attachment 1)
4. Supple Chain/ Operations Strategy
Chipotle believes that their unrelenting effort to revolutionize fast food through their unique way of production and people cultures will help them to move forward in building a valuable company for their stakeholders.6 Chipotle focuses on its product differentiation, market segmentation, operational excellence, and customer intimacy.6

The product assembler to customer stage in chipotle’s supply chain directly aligns with its focus...
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