Chipotle

Topics: Fast casual restaurant, Fast food, Fast food restaurant Pages: 50 (18208 words) Published: April 26, 2012
Prepared for:
Chipotle

Submitted By:

December 14, 2011
I. Introduction to Chipotle
Introduction
Chipotle Mexican Grill is a leading force in its commitment to buy food from sustainable sources that do not have a negative impact on its menu pricing. Besides leading the way in the fast casual dining experience, it also supports farming initiatives that develop and practice best standards. Chipotle is also active in its environmental commitment to working to reduce its carbon footprint by reducing its reliance on fossil fuels through the implementation of various environmental initiatives, including green building and depending on solar power energy. It is also well known for its philanthropic activities, including its support of FarmAid and its local communities. Ells’ philosophy is simple: “to eat real food – unprocessed, whole food that has been cooked in a classic way and sourced from real farmers, as opposed to large corporate farms” (Going green, 2010). This philosophy apparently appeals to Americans; Chipotle opened its 1,100th store in 2011 (Chipotle cultivates, 2011). Chipotle History

Founder Steve Ells first opened the doors to Chipotle Mexican Grill in 1993 in a former Dolly Madison ice cream location, near the University of Denver, in Denver, Colorado. Although he had no experience running a fast food restaurant, he had graduated from the Culinary Institute of America in 1990 and worked for two years as sous-chef under Jeremiah Tower at Stars, in San Francisco (Sheehan, 2010). While working in San Francisco, he became acquainted with the local burrito vendors, or taquerias, in the Mission District who sold flour tortillas stuffed with an assortment of fillings to create a giant burrito, wrapped in aluminum foil, a local favorite. He thought there was a market for this simple menu item, so he borrowed $85,000 from his father (structured as part loan and part equity investment) to open his first Chipotle, that served a limited menu of tacos and burritos (Ells, 2007).

Ells applied the combined training and techniques he learned at the CIA and as sous-chef to perfect the food he served. He determined to have a different type of fast-food restaurant; he was emphatic about his belief that only the highest quality ingredients were included in the burritos and tacos he served. Chipotle’s salsa ingredients are made fresh from scratch, and the avocados used in making the guacamole are hand-mashed (they never serve frozen avocadoes). The philosophy paid off when people kept coming back for his simple yet great-tasting food; the small restaurant was so popular that customers typically encountered waiting lines out the door. As a result, the company quickly grew, adding two additional locations in 1995 and five more in 1996 (Chipotle Mexican Grill, 2010).

Chipotle is best defined as a trendy and healthier version of fast food (although calories for one of the giant burritos is comparable to those of a typical fast food meal), but it doesn’t fit the standard fast-food label; its style of gourmet fast food has brought about a new label: ‘fast casual,’ which fills a niche market between fast food and sit-down dining. The company serves high-end Mexican food set in an environment that is sleek in design. Although made from the same materials, no two Chipotle restaurants are designed the same; most are made of plywood, corrugated metal, concrete floors, stainless steel counters and tables, wooden chairs, and lighting hanging from exposed ductwork.

McDonald's apparently agreed that it was a restaurant worthy of investment; the company bought into the chain in 1998, the first time it had ever backed a business other than its own, after Ells sent them a business plan for his restaurant. There were only 15 locations at that time, but within three years, McDonald’s significant investment (nearly $360 million) helped grow the company to more than 500 restaurants (Ells, 2007). In 2006, Chipotle went...

References: 2010 form 10-K, Chipotle Mexican Grill, Inc. United States Securities and Exchange Commission. Retrieved November 17, 2011 from http://www.sec.gov/Archives/edgar/data/1058090/000119312511039010/d10k.htm
Adamy, J
formula, Chipotle promotes service, costly natural ingredients. Wall Street Journal,
November 23, 2007, B7.
Adding Multimedia Chipotle Plans Major Solar Power Initiative. (2009). Bloomberg.com. Retrieved on November 6, 2011 from http://www.bloomberg.com/apps/news?pid=conewsstory&tkr=CMG%2FB:US&sid=aBDYgZAMPGlw
Anderson, M
Anonymous (2011). Chipotle mexican grill; Chipotle 's challenge: Wrap what you love
Marketing Weekly News: 324. 
Arndt, M. (2007). Chipotle: Fast food with ‘Integrity.’ Businessweek. Retrieved November 17, 2011 from http://www.bizjournals.com/sacramento/blog/cooking/2010/11/chipotle-to-serve-up-asian-eatery.html
Bacon, David
Basham, Mark. “Restaurants.” NetAdvantage. 2 Sept. 2010. Web. 10 Sept. 2010.
Beaumont, S. 2010. Welcome back. Nation’s Restaurant News, 44(11): 25-27.
Berta, D. 2009. Chain of command: Steve Ells. Nation’s Restaurant News, 43(41): 22-23.
Berta, D. 2010. Training days. Nation’s Restaurant News, 44(14): 10-11.
Bilsky, Carolyn. “Feasting on Fast-Casual. This Expanding Market Niche Attracts the Appetites of Consumers and Investors”. www.ccim.com February, 2007. http://www.ccim.com/cire-magazine/articles/feasting-fast-casual
Bloomberg
Bove, J. (2009). Chipotle Mexican Grill goes platinum. Display & Design Ideas, 21(10), 10.
Brandau, M
Buchthal, K. 2006. Blue-chip specials. Restaurants and Institutions, 116(13): 75-77.
Cebrzynski, G. (2006). Chipotle, Wienerschnitzel, Culver 's change ad strategies. Nation 's Restaurant News, 40(27), 4-38.
“Chipotle 2010 annual report”
Chipotle creates foundation to support sustainable agriculture. (2011). Sustainable Business. Retrieved on November 15, 2011 from http://www.sustainablebusiness.com/index.cfm/go/news.display/id/22844
Chipotle Cultivate Foundation
Chipotle Mexican Grill Plans Major Solar Power Initiative. (2009). Green Energy News. Retrieved on November 6, 2011 from http://www.green-energy-news.com/nwslnks/clips1009/oct09029.html
Chipotle Mexican Grill SEC 2005 filing
18, 2011 from http://www.happynews.com/news/8272007/chipotle-teams-farm-aid-help-family-farmers.htm
Chipotle to mount solar panels at 75 restaurants, Dell installs arrays at its HQ
Cohen, A. 2008. Ode to a burrito. Fast Company, 124: 54-56.
Cummings, B. 2008. Consumers are dining in more-at the supermarket. Brandweek,
49(19): 6-7.
Curan, C. 2008. Still-growing chains bullish about prospects to gain market share. Nation’s Restaurant News, 42(26): 6-9.
Doyle, A. 2011. The big apple has the right ingredients. Successful Meetings, 60(3): 24-27.
Eastman, J. K, & Eastman, K. L. 2011. Perceptions of status consumption and the economy. Journal of Business and Economics Research, 9(7): 9-20.
Ells, S. (2007). Fine fast food. Time. Retrieved on November 18, 2011 from http://www.time.com/time/specials/2007/article/0,28804,1663316_1684619_1663337-2,00.html
Emelo, R
Feltman, P. 2005. Companies reporting varied motives behind their recent charitable
contributions
Frumkin, P. 2010. Government at a glance. Nation’s Restaurant News, 44(6): 14-15.
Garber, A. 2003. McD not smiling over non-burger sales report. Nation’s Restaurant News, 37(14): 1-3.
Garber, A. 2003. Sandwich chains lighten up, promote lean, fresh and wholesome image. Nation’s Restaurant News, 37(30): 82-84.
Garber, A. 2005. Fast-casual chains pick up the pace. Nation’s Restaurant News, 39(40): 57-60.
Garber, A.  (2006). Smaller chains tap new growth, menu plans to gain edge in fast-casual
scene. Nation 's Restaurant News, 40(15): 1-5. 
Glazer, F. 2009. Consumers go out for bold flavors they can’t make at home. Nation’s Restaurant News, 43(45): 14-15.
Glazer, F. 2009. During diet season diners seek healthful, value-oriented fare. Nation’s Restaurant News, 43(6): 16-17.
Griffin, Marcia. “Critical Success Factors”. www. Smartcompany.com. September 2, 2008. http://www.smartcompany.com.au/high-heeled-success/critical-success-factors.html
Hein, K.  (2006)
Jacobsen, J. 2011. Foodservice channel making strides. Beverage Industry, 102(7): 32-35.
Jargon, J. 2011. Ahead of the tape. The Wall Street Journal, April 21, 2011, C.1
Jennings, L
Jennings, L. 2010. Burger boom. Nation’s Restaurant News, 44(7): 1-4.
Jennings, L. (2010). Chipotle to open Asian fast-casual concept. Nation’s Restaurant News. Retrieved November 15, 2011.
Johnson, J. D. 2001. Success in innovation implementation. Journal of Communication Management, 5(4): 341-361.
Kaplan, D. A. 2011. Chipotle’s growth machine. Fortune, 164(5): 134.
Krummert, B. 2001. A home on the free range. Restaurant Hospitality, 85(9): 15-17.
Laskawy, T. (2010). Court rules rBGH-free milk is better than the kind produced with artificial hormones. Now what? Grist. Retrieved on November 18, 2011 from http://www.grist.org/article/food-2010-10-06-court-rules-on-rbgh-free-milk
Lockyer, S
Lockyer, S. E. 2008. Chipotle bucks all trends, analysts weigh in on future of industry star. Nation’s Restaurant News, 42(18): 13-14.
MacArthur, K
Marlow, M. L., & Shiers, A. F. 2011. Optimal weight, Regulation, 34(2): 10-16.
Continue Reading

Please join StudyMode to read the full document

You May Also Find These Documents Helpful

  • Chipotle External Analysis Essay
  • Chipotle Essay
  • W1A1 Chipotle Mexican Grill Strategy Im Essay
  • CHIPOTLE Essay
  • Chipotle Essay
  • Chipotle Essay
  • Essay on Chipotle
  • Essay on Chipotle Mexican Grill

Become a StudyMode Member

Sign Up - It's Free