Identification of the Case Problem
Chipotle Mexican Grill (CMG), Inc. is a chain of restaurants in the United States, United Kingdom, Canada, Germany, and France, specializing in burritos and tacos. Chipotle is fast casual style restaurant which use health and quality food to become favored of their customers. “Food with integrity” is their commitment as well as mission statement to finding the best ingredients raised with respect the farmers, animals and environment. However, with the tendency of rising of food cost, it is a challenge for Chipotle to remain the price while they keep serving such quality food. In addition, because of economy recession, quick service and fast casual restaurants are favoured over full service restaurants lower check prices, while nowadays majority of customers prefer to curtail or maintain their spending on eating. Meanwhile, Taco Bell, a formidable competitor of CMG is pressing and pushing Chipotle by aggressive and large-scale advertising. Therefore, how to survive in this competitive market without giving up on serving their sustainably raised food, without giving up on their honored commitment “food with integrity” becomes Chipotle’ current emergent issue that they have to confront. Situational Analysis
Chipotle built its reputation in United States, Canada and UK With more than 1600 locations, Chipotle had a net income in 2013 of US$327.4 million and a staff of more than 45,000 employees. Chipotle has been using sustainably raised food since 2001 when they launched its mission statement “food with integrity” Positive brand name with loyal customers
When Chipotle build their restaurants, environment friendly materials are used in properties. Strong backers such as McDonald’s ($36 million in 1998)
Company owned restaurants, not franchised
Advertise about local farmers “at least 1 item for each store” Weakness
Healthy and quality food guaranteed incurred relatively higher food cost Limited presence: major...
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