Chipotle Grill Case Study

Topics: Fast food, Chipotle Mexican Grill, Financial ratios Pages: 5 (1459 words) Published: April 22, 2014
What does a SWOT analysis reveal about the attractiveness of Chipotle Mexican Grill’s situation and future prospects? There are a lot of things about Chipotle that have kept them successful in previous years. Opportunities and strengths depict that presently the company has a strong and positive image in its established markets which is mainly in the U.S., U.K. and Canada. Strong brand recognition drives the company. Customer loyalty allows a long-term positive impact to Chipotle, which enhances company value. Targeting a group who is health conscious, environment friendly and loves Mexican fast food keeps Chipotle on the forefront of success. Chipotle has an extensive line of nutritionally balanced menu items derived from both organic and naturally raised ingredients. This idea led to the concept of “Food with Integrity” (Gamble, Thompson, Jr., & Peteraf, 2015, p. 303). Chipotle’s reputation encases ethical and charitable standards along with healthy choices for the consumer. Chipotle is “company-owned”, not a franchise so maintaining integrity is easier. Customers may choose to dine-in, take-out, and even order online to pick-up in the restaurant. These options have strengthened the company by offering convenience and availability to the customer. The brand also has a bright future in the untapped regions and with ample scope of introducing new food items in its menu. The creator of Chipotle came up with five core elements in which to base the strategy of the establishment: •Serving a focused menu

High quality, reasonably priced, convenient menu items
Operational efficiency
Friendly staff
Awareness and respect for the environment
Chipotle’s Strategy
Chipotle’s strategy is one of differentiation. Specific types of food that can be produced through local, environmentally conscious, farmers at an affordable price point is a primary goal. Offering natural food raised from local, organic vendors that customers respect yet still at an affordable, fast food price, creates a stand apart from the competition. Another way Chipotle differentiates from the competition is through human resource practices. People from all ethnicities are brought together to bridge cultural and linguistic gaps between both employees and customers. Chipotle has a team dedicated to empowering, educating, and training employees to increase internal promotions, cultural sensitivity, and communication skills. The company prides itself on hiring from within and providing employees with opportunities to grow. The key element of Chipotle’s strategy is “Food with integrity” (Gamble, Thompson, Jr., & Peteraf, 2015, p. 303). Sourcing supplies from natural, organic, and sustainable, and environmentally friendly growers/producers is an essential strategy is maintaining market standing. Not many restaurant chains, if any, can say they are consistent in this practice, which makes Chipotle rise above the rest. More and more people are making the choice to choose to eat healthier which makes Chipotle an excellent choice and places them in a strategic place in the fast food industry. With more healthy choices than other fast food establishments such as Taco Bell, consumers are more likely to choose Chipotle. Another key element to the strategic plan is operating efficiently in an aesthetically pleasing environment. Even though it is fast food, Chipotle doesn’t offer a fast food setting when dining in. With a modern theme of bamboo or stained concrete flooring, pendulum lighting, and outdoor patios where available, Chipotle has reduced the cost of building and maintaining new establishments but still managed to keep the aesthetically pleasing, not-so-fast food ambiance. How does Chipotle Mexican Grill’s competitive strength compare against that of Taco Bell, Qdoba Mexican Grill, and Moe’s Southwest Grill?

Chipotle is not as visibly prominent here in the South as it is in other states compared to Qdoba Mexican Grill, but more so than...
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