Preview

Chipotle Competitive Asstment

Satisfactory Essays
Open Document
Open Document
356 Words
Grammar
Grammar
Plagiarism
Plagiarism
Writing
Writing
Score
Score
Chipotle Competitive Asstment
Q8:
As a pioneer in fast-casual Mexican food, Chipotle has played an important role in developing this category. Currently, Chipotle’s direct competitors include Taco Bell, Qdoba Mexican Grill, Moe's Southwest Grill, so on. Their competition also includes a variety of locally owned and franchised restaurants. Many of Chipotle’s competitors have more financial resources, greater name recognition, or are better established in the markets in which their restaurants are located.
However, Chipotle has their competitive strength due to their upscale menu selections and especially higher – quality ingredients. They use a variety of fresh ingredients, as well as their commitment to “Food with Integrity”. Chipotle can utilize their relationships with local farmers to create a stronger marketing message and differentiate themselves relative to competitors by focusing on their locally farmed, free range, antibiotic and hormone free meat.
(Chèn bảng)
From the table of Competitive Strength Assessments of 4 restaurants, it can be seen that Chipotle Mexican Grill still has net competitive strength over Moe’s Southwest Grill (0.4) and Qdoba Mexican Grill (0.2). Only Taco Bell has the same overall competitive strength rating as Chipotle. Therefore, of 3 competitors, Taco Bell seems to have the strongest set of resource strengths and competitive capabilities and is most likely to achieve the best financial performance. It is recognized as of the best Mexican fast food chains in the United States of America with a specialized quick service approach. It had a total of 1,201 company-owned and 4,029 franchised restaurant locations in the United States, plus another 3 company-owned and 237 franchised international locations in 2012. Besides that, the change in the management and organizational structure trickled prosperity in Taco bell’s overall set up. However, Taco Bell, their rival, was scored the lowest in food quality and atmosphere among limited-service Mexican eateries by

You May Also Find These Documents Helpful

  • Good Essays

    With these practices, Chipotles guarantees the safety of all their products used starting with the animals.…

    • 706 Words
    • 3 Pages
    Good Essays
  • Powerful Essays

    Chipotle

    • 11002 Words
    • 45 Pages

    The fast-casual restaurant industry was the pioneered by Steven Ellis, the CEO of Chipotle Mexican Grill. Now considered the leader in the fast casual industry, Chipotle Mexican Grill (CMG), first opened their doors in the spring of 1993 in heart of Denver, Colorado. Immediately Chipotle’s was a hit with the younger college crowd, and through word of mouth, CMG quickly became a staple for many residents near the college where the first restaurant opened. Since then, Chipotle has opened up 1230 stores in 46 states, including stores in Canada and recently London. Chipotle was built around the idea of simplicity, keep the menu simple and serve high quality, farm fresh, free range ingredients. “Food with Integrity” has been the corporate credo ever since.…

    • 11002 Words
    • 45 Pages
    Powerful Essays
  • Good Essays

    Chipotle Mexican Grill has emphasized on their customers and are not afraid to remain sincere and acknowledge their errors, even when they are losing revenue. Last year Chipotle went through a crisis where they force the chains to close serval of restaurants due to a norovirus outbreak. Other food-borne illness cases were also related with Chipotle restaurants that includes E.coli, and salmonella. As a consequence, the company is under investigation. Also their sales and stocks have decline because of the outbreaks that occurred.…

    • 390 Words
    • 2 Pages
    Good Essays
  • Powerful Essays

    Chipotle Mexican Grill was a concept turned reality by a gentleman by the name of Steve Ells. Chipotle Mexican Grill provides excellent Mexican cuisine driven by a concept of “Food with Integrity”. The first chipotle Mexican grill was opened in 1993 in Denver Colorado. By the end of 1995 there were three. In 1996 alone, Steve Ells opened five more Denver-area restaurants growing by a total of eight stores in three years. By 1998 Chipotle Mexican Grill was showing much promise. In order to meet their growth needs Chipotle took on outside investors. In 1999 they opened their first out-of-state stores in Minnesota and Ohio. As Steve was seeing rapid growth with his company, he was also noticing significant issues with the quality of the food being desired in this industry. After learning how pork was traditionally raised in the United States Steve Ells started his business down a new path. This lead to the concept of “Food with Integrity” , which was as a result of Steve’s decision to sell only the highest quality organic and naturally raised foods. Chipotle Mexican Grill continues to grow rapidly and in 2006 went public on the New York Stock Exchange. By 2012, Chipotle Mexican Grill had over 1400 company-owned stores taking over as the number two Mexican fast food restaurant for total sales in the US market. Today the overall business environment for Chipotle Mexican Grill is very good. The company has grown by over 50% since 2010 and is seeing increases in revenue averaging between 18% and 20% each year. Since going public the company has seen a 4000% return in their stock prices. Chipotle Mexican Grill continues to grow an average of 150+ stores per year. Based on their financial reporting for 2013 they had reached $3.21 billion in revenue. The significant amount of growth…

    • 1753 Words
    • 8 Pages
    Powerful Essays
  • Good Essays

    Chipotle Case Study

    • 427 Words
    • 2 Pages

    The main reason for this is because of high rates of competitors. With the low barriers of entry, many companies cannot compete with an industry with many alternatives. What lead Chipotle being successful today is because of their concept. They provide customers with fast and healthy food and becoming more aware on customer’s trends. There are many opportunities that Chipotle can dominant the market only if management are ready with the right strategy. Expanding their brand internationally will provide Chipotle a bigger market. Chipotle is a very organize operation and will continue for potential growth. Chipotle will continue to provide with customers wants. With the large population being more health conscious, Chipotle can become the top competitor in this…

    • 427 Words
    • 2 Pages
    Good Essays
  • Good Essays

    The small scale food suppliers did not take food safety measures into account. These food vendors did not have the infrastructure to maintain the supply of food. The food vendors were not in a position to explain the process they used to secure food. Chipotle had to cut links with food suppliers. Chipotle had run into significant losses; however, chipotle developed plans of opening its supply to recap the loss that it has suffered.…

    • 456 Words
    • 2 Pages
    Good Essays
  • Powerful Essays

    Chipotle Mexican Grill

    • 1653 Words
    • 7 Pages

    Taco Bell had now become a major competitor to Chipotle since the launch of their new Cantina Bell menu allowing them to enter into the fast-casual segment in offering similar ingredients and items as Chipotle had. At the same time CMG paid a significant amount more for their products forcing them to charge a higher price on their menu items. Taco Bell, however, now offered similar items for half the price. The bottom line: competition was the root of this problem. The fact that Chipotle menu prices were higher as compared to that of Taco Bell’s new menu would lead to consumers or normally loyal customers to give the Cantina Bell menu a try.…

    • 1653 Words
    • 7 Pages
    Powerful Essays
  • Good Essays

    Chipotle Mexican Grill

    • 509 Words
    • 3 Pages

    Chipotle has differentiated itself by catering to customers concerned about sustainability and offering high-quality, made-to-order fresh Mexican fast food. According to Chipotle’s founder, Steve Ells, who studied at the Culinary Institute of America, Chipotle buys more antibiotic-free and vegetarian-fed meat than any other restaurant in the world. All of the food at Chipotle is made fresh daily by staff who have been taught culinary skills Ells learned from the culinary institute. In addition, Chipotle is committed to buying locally when possible and supporting family farms.…

    • 509 Words
    • 3 Pages
    Good Essays
  • Powerful Essays

    Chipotle Mexican Grill is a chain of restaurants specializing in San Francisco burritos and tacos since it’s inception in 1993. Chipotle is known for chunky guacamole, large burritos, and assembly line production that provides high quality food served with the speed of fast food. Its “Food with Integrity” motto represents the pride it has in providing wholesome ingredients. The company presently uses 100% naturally raised chicken and pork, meaning the animals were raised in a humane way and never given antibiotics or hormones. Chipotle currently operates 862 restaurants in 33 states and plans to open 120-130 new restaurants in 2009 (Chipotle, 2009). A major challenge is finding new restaurant sites that will provide an adequate customer base and enable continued growth.…

    • 294 Words
    • 2 Pages
    Powerful Essays
  • Good Essays

    Swot Chipotle

    • 305 Words
    • 2 Pages

    Chipotle is a Mexican restaurant that was opened in 1993 with the one goal to serve high quality and tasty food quickly with an experience that exceeded but refined the fast food experience. Chipotle also focus on using the best ingredients, and upholding their mission statement “Food with Integrity”. It is important to have all of the above qualities in owning a business, but every company has strength and weaknesses, which I will be discussing in this paper. I will discuss the strengths of Chipotle and also their weaknesses, and explain how their strengths can improve their weaknesses.…

    • 305 Words
    • 2 Pages
    Good Essays
  • Better Essays

    Chipotle Swot Analysis

    • 2597 Words
    • 11 Pages

    Chipotle mission’s statement is “Food With Integrity.” Its primary goal is to serve all naturally raised meats in all restaurants.…

    • 2597 Words
    • 11 Pages
    Better Essays
  • Good Essays

    Chipotle uses a network of organic farmers, rather than relying on a single supplier, to minimize the risk of supply shortages. Chipotle partners with family owned farms like Niman Ranch, Meister Cheese, and the Chef’s Garden to obtain local products. Since the cost of sourcing quality ingredients is high the prices get passed on to their customers. Chipotle attempts to reduce other operating costs to offset their transportation costs. They know that customers are willing to pay a higher cost for better quality food.…

    • 573 Words
    • 3 Pages
    Good Essays
  • Good Essays

    The fast food restaurant industry, which includes quick-service and fast-casual restaurants, is highly segmented with the top 50 companies accounting for only 25% of the industry’s sales. The $120 billion industry includes over 200,000 restaurants with 50% of those specializing in hamburger entrees. (hoovers.com 2008) The major competitors in the industry include McDonald’s, Burger King, Taco Bell, Subway, and KFC – Chick-fil-A’s major competitor in chicken sales. Chick-fil-A’s unique position in the market, specializing in chicken-based entrées, has lead to a competitive advantage which the company has been able to capitalize on. Recently, many competitors have added chicken entrees in order to compete in the market segment. Through marketing strategies and company initiatives, Chick-fil-A has tried to stay distant from competitors, offering a fresh alternative to the ordinary fast food restaurant.…

    • 1841 Words
    • 8 Pages
    Good Essays
  • Satisfactory Essays

    Nutrition Discussion

    • 779 Words
    • 4 Pages

    Chipotle is one of my favorite, if not my absolute favorite, fast food restaurants to dine at. I like Chipotle because their food is always fresh and tastes great. Furthermore, I am a big fan of their "Food with Integrity" mission. Information about this mission can be found in the restaurants and on their website. In short, the "Food with Integrity" mission is a commitment established by the company to to serve good quality food by using, whenever possible, meat from animals who are treated properly and organic food products, while supporting local/family…

    • 779 Words
    • 4 Pages
    Satisfactory Essays
  • Good Essays

    Tasty Taco Truck

    • 800 Words
    • 4 Pages

    “Tasty Taco Truck” has a monopolistic competition. It is evident that the city of Houston includes many food truck businesses, meaning that “Tasty Taco Truck” has many competitions. Furthermore, the food truck industry has a relatively simple entry because vast quantity of money will not be…

    • 800 Words
    • 4 Pages
    Good Essays