Chipotle's Value Chain

Chipotle is a successful company due to its overall superior value chain, which focuses on sustaining competitive advantage through differentiation. In its primary activities, Chipotle has managed to sustain superior inbound logistics. The brand revolves around its mission statement, “Food with Integrity,” which praises the restaurants use of ingredients raised with integrity and respect for the animals, the environment and the farmers. Furthermore, in 2008, CMG created a program to increase local sourcing to 35% of at least on bulk produce item and created a network of local farms to supply most of its vegetable and greens. While these initiatives do increase the price of their supplies, Chris Arnold, CMG’s communication director, states that “spending more on food (...) we’ve built one of the most successful restaurant companies.”
The assembly line style of production allows customers to see their made-to-order order being prepared and have the option of choosing its specific ingredients. Moreover, due to its open kitchen, customers can also see their meat and other ingredients being prepared more towards the back. This allows them to step out with a burrito or bowl in hand, just as fast at they would when ordering a burger at a fast food restaurant. In addition, the company’s simple restaurant design allows them to save on expenses regarding the restaurant’s interior design elements and also allow for a clean, easy to maintain environment. By incorporating solar panels and becoming LEED certified, CMG also reinforces it’s mission to the environment, while saving money on electric