Preview

Chipotle's Competitive Analysis

Good Essays
Open Document
Open Document
557 Words
Grammar
Grammar
Plagiarism
Plagiarism
Writing
Writing
Score
Score
Chipotle's Competitive Analysis
Rivalry among existing firms
Chipotle faces moderate rivalry among existing firms as it faces low numbers of competitors namely Taco Bell, Moe’s Southwest Grill, Qdoba Mexican Grill and for the smaller chains including Baja Fresh and also California Tortilla. In addition, Chipotle’s products are moderately differentiated as its quality and nutritious ingredients, customized products offer to customers, ability to serve orders quickly, emphasise on quality assurance and food safety at the same time offering best possible experiences to customers. Moreover, Chipotle experiencing growth demand from customers as more restaurants open at Paris and France in 2012.
Bargaining power of buyers The bargaining power among buyers is relatively low because
…show more content…
Consumers might switch to another competitors such as Taco Bell, Moe’s Southwest Grill and Qdoba Mexican Grill. Taco Bell Moe’s Southwest Grill and Qdoba Mexican Grill also offer upscale menu selections and also high quality ingredients in producing their products. For Taco Bell, in term of food quality, it is the lowest compared to three of the companies. Yet, Taco Bell priced below similar types of Chipotle products. For Moe’s Southwest Grill, it also offer customized main dishes. For Qdoba Mexican Grill, it offer handcrafted dishes with fresh ingredients and innovative flavors by skilled cooks. But, the possibility of Chipotle being fully substitute is merely impossible because the experiences offerd by Chipotle towards their customers. Other than that, threat might face by Chipotle is customers might make their own food instead of having meal in Chipotles.
Bargaining power of suppliers The power among the suppliers is high because Chipotle has limit the approved suppliers for purchasing the ingredients. Chipotle only open the supply of ingredients from reputable food industry suppliers. It do so as to make sure the quality of ingredients meets the requirement and able to control the cost of ingredients. Chipotles might face shortage of ingredients supply at various time due to growing seasons and also natural disasters.
Threat of new

You May Also Find These Documents Helpful

  • 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
  • Satisfactory Essays

    The history of Chipotle plays a huge part in the fast-casual industry. Its Founder Steve Ells originally worked at the Stars restaurant in San Francisco. He left his job to pursue his dream of opening a fine-dining restaurant but didn’t have the funds to do so. He opened the first Chipotle in 1993 in order to help him fund his dream restaurant. Before he knew it Chipotle took off and became a leader in the fast-casual industry. He started with an $85,000 loan from his father and by 2001 McDonald’s was Chipotle’s largest investor. In 2006 Chipotle went public and McDonalds and Chipotle went their separate ways. Without McDonalds Chipotle might not be where it is today. Its early investment gave Chipotle the capital it needed to grow and with…

    • 195 Words
    • 1 Page
    Satisfactory 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
  • Better Essays

    When Steve Ells decided to create a restaurant concept that combined the quick-serve experience with exceptional quality food, he didn’t know it would be an instant hit (Thompson, Peteraf, Gamble, & Strickland III, 2015). He was looking for a way to use his culinary training and restaurant experience to elevate the fast-food concept. This transformed the way people thought about fast-food. His concept centered on a focused menu serving only high-quality, fresh ingredients using traditional cooking methods and made-to-order preparation in a restaurant interior that was aesthetically pleasing but still prepared in under 2-3 minutes. And Chipotle Mexican Grill was born! Within six years of being open, Chipotle Mexican Grill went public on the New York Stock Exchange, doubling its stock price the first day (Thompson et al., 2015). Year after year, Chipotle has been able to grow revenue from $3.2 billion to $4.1 billion ("CHIPOTLE MEXICAN GRILL INC (CMG:New York): Financial Statements - BusinessWeek," n.d.). See Exhibit 2 for Chipotle’s Financial Statement.…

    • 1654 Words
    • 7 Pages
    Better Essays
  • Good Essays

    Founded by Steve Ellis in 1993, his main focus was to transform "fast food" to an experience more similar to fine dining. Taking inspiration from features commonly found in fine-dining, he wanted the strategy for Chipotle Mexican Grill to focus on the following five elements:…

    • 706 Words
    • 3 Pages
    Good Essays
  • Good Essays

    Conversely, it is not easy to tell the source of the infection. Chipotle deals with a larger chain of supply, therefore, it makes it tougher to detect where the dieses is coming from. Chipotle has about one thousand nine hundred foot outlets. The more stores may result in food shortage and improper food safety.…

    • 456 Words
    • 2 Pages
    Good Essays
  • Good Essays

    Chipotle vs Panera

    • 1784 Words
    • 8 Pages

    When Chipotle opened its first store in 1993, the idea was simple: demonstrate that food served fast didn 't have to be a "fast-food" experience (Chipotle.com, 2010). Chipotle uses high-quality raw ingredients, classic cooking methods and a distinctive interior design. In the past year, Chipotle reached an important milestone of serving 100% naturally raised chicken in all of its U.S. restaurants while increasing the quantity of naturally raised beef to more than 60%. During 2008, Chipotle increased its revenue by 22.7%.…

    • 1784 Words
    • 8 Pages
    Good 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
  • 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
  • Powerful Essays

    Swot Analysis Chipotle

    • 1485 Words
    • 6 Pages

    In recent years, competitors have started offering healthier menu options at lower price points. Taco Bell’s cantina menu is much like the Chipotle brand in which it offers more of a lighter southwestern flare than traditional Mexican dishes. The menu pricing at Chipotle is higher but is due much in part by the use of organic and natural selections, some of which are difficult to obtain in winter months. With difficult growing seasons across the United States, Chipotle may have to choose to change their menu in winter months. With limited menu items and ingredients that have price volatility it may not be a smooth establishment in new states and…

    • 1485 Words
    • 6 Pages
    Powerful Essays
  • Good Essays

    In late 2015, two outbreaks appeared in America. In the first, larger outbreak, 55 people infected with Escherichia coli O26 (STEC O26). 55 people are from 11states. 21 ill people were hospitalized. In the second outbreak, 5 people from 2 states infected with STEC O26 and 1 people was hospitalized (CDC, 2016). FDA along with CDC and local public health official investigated two outbreaks and found that most of the victims ate Chipotle Mexican Grill before. They think two outbreaks may relate to Chipotle Mexican Grill. Chipotle Mexican Grill voluntary closed 43 restaurants located in Washington and Oregon in early November (FDA,2016).…

    • 660 Words
    • 3 Pages
    Good Essays
  • Good Essays

    In comparison to their fast food competitors Chipotle is tearing down walls and beating competition. The risk of serving raw organic food is serving them well against the competition. Luring customers in with the promise of fast affordable fresh menu options is grasping consumers by the truck load. Bustling service, simplistic menu, and contemporary designs is putting this company at the top.…

    • 669 Words
    • 3 Pages
    Good Essays
  • Powerful Essays

    Chipotle

    • 11002 Words
    • 45 Pages

    While continuing to grow its US presence, Chipotle should focus on enhancing its menu offerings, expanding slowly, to ensure it doesn’t stray from its already successful formula. Chipotle should also highlight and continue to promote its “Food with Integrity” campaign by advertising more heavily and focusing on the saving the family farm as a major differentiating factor between themselves and their competitors.…

    • 11002 Words
    • 45 Pages
    Powerful Essays
  • Good Essays

    In order for Chipotle to implement the strategy, consistent relationships with local suppliers is paramount. The assumption is that the less distance the food has to travel, the better. This is a benefit to all involved. The company benefits with being known by the market it serves as serving the local community. The suppliers benefit in that it can deal with a reliable and consistent partner for supplying the food. The local community benefits by improved economy and decent paying…

    • 809 Words
    • 4 Pages
    Good Essays
  • Good Essays

    Chipotle Mexican Grill

    • 441 Words
    • 2 Pages

    Chipotle Mexican Grill, aims to do a few things but do them exceptionally well. When Chipotle (pronounced chi-POAT-lay) opened its first store in 1993, the idea was simple: demonstrate that food served fast didn't have to be a "fast-food" experience. We use high-quality raw ingredients, classic cooking methods and distinctive interior design--features that are more frequently found in the world of fine dining. When we opened, there wasn't an industry category to describe what we were doing. Some 16 years and more than 900 restaurants later, we compete in a category of dining now called "fast-casual," the fastest growing segment of the restaurant industry, where customers expect food quality that's more in line with full-service restaurants, coupled with the speed and convenience of fast food.…

    • 441 Words
    • 2 Pages
    Good Essays