Chipotle Executive Summary
Internal Analysis
In comparison to its biggest competitor, Taco Bell, Chipotle has the upper hand in terms of taste and quality. Its efforts in serving quality food through sustainable sourcing acts as a point of differentiation among its quick service peers. With its ‘food with integrity’ as its mission, it gained the approval of millennials by establishing itself as a fresher and healthier alternative. To integrate its mission into its operations, Chipotle has an efficient distribution network consisting of 22 independently operated distribution centers that assess the quality of its supply, allowing them to have efficient supply chain coordination. In addition, Chipotle took further control of its supply chain by constructing a network …show more content…
The company’s substantial growth over the past years is partly caused by the rise in health awareness among consumers, moving away from conventional fast-food towards healthier alternatives. As the growing market for healthier fast food alternatives is undeniably attractive, more companies are adopting similar value proposition as Chipotle to compete in this market. Additionally, the quick service industry is the fastest growing segment, with an 11 per cent growth rate between 2007 and 2011, Chipotle has a lot of potential to grow its consumer base and thus market share.
Other than the quality fast-food category, Chipotle is also competing with restaurants from other categories. The most prominent competitor in the Mexican food category, Taco Bell in particular, pose a threat to Chipotle’s customer base. Taco Bell shares the same customer base as Chipotle as a fellow Mexican restaurant, and the launch of Taco Bell’s new menu, Cantina Bell, won the demand of Chipotle’s regular customers with its cheaper price. Chipotle’s decreasing same-stores sales could be attributed to the growth of competitors as
In comparison to its biggest competitor, Taco Bell, Chipotle has the upper hand in terms of taste and quality. Its efforts in serving quality food through sustainable sourcing acts as a point of differentiation among its quick service peers. With its ‘food with integrity’ as its mission, it gained the approval of millennials by establishing itself as a fresher and healthier alternative. To integrate its mission into its operations, Chipotle has an efficient distribution network consisting of 22 independently operated distribution centers that assess the quality of its supply, allowing them to have efficient supply chain coordination. In addition, Chipotle took further control of its supply chain by constructing a network …show more content…
The company’s substantial growth over the past years is partly caused by the rise in health awareness among consumers, moving away from conventional fast-food towards healthier alternatives. As the growing market for healthier fast food alternatives is undeniably attractive, more companies are adopting similar value proposition as Chipotle to compete in this market. Additionally, the quick service industry is the fastest growing segment, with an 11 per cent growth rate between 2007 and 2011, Chipotle has a lot of potential to grow its consumer base and thus market share.
Other than the quality fast-food category, Chipotle is also competing with restaurants from other categories. The most prominent competitor in the Mexican food category, Taco Bell in particular, pose a threat to Chipotle’s customer base. Taco Bell shares the same customer base as Chipotle as a fellow Mexican restaurant, and the launch of Taco Bell’s new menu, Cantina Bell, won the demand of Chipotle’s regular customers with its cheaper price. Chipotle’s decreasing same-stores sales could be attributed to the growth of competitors as