Chipotle Grill Case Study Essay

What does a SWOT analysis reveal about the attraction of Chipotle Mexican Grill’s state of affairs and future chances? There are a batch of things about Chipotle that have kept them successful in old old ages. Opportunities and strengths depict that soon the company has a strong and positive image in its established markets which is chiefly in the U. S. . U. K. and Canada. Strong trade name acknowledgment drives the company. Customer trueness allows a long-run positive impact to Chipotle. which enhances company value. Targeting a group who is wellness witting. environment friendly and loves Mexican fast nutrient supports Chipotle on the head of success. Chipotle has an extended line of nutritionally balanced bill of fare points derived from both organic and of course raised ingredients. This thought led to the construct of “Food with Integrity” ( Gamble. Thompson. Jr. . & A ; Peteraf. 2015. p. 303 ) . Chipotle’s repute encases ethical and charitable criterions along with healthy picks for the consumer. Chipotle is “company-owned” . non a franchise so maintaining unity is easier. Customers may take to dine-in. take-out. and even order online to pick-up in the eating house. These options have strengthened the company by offering convenience and handiness to the client. The trade name besides has a bright hereafter in the untapped parts and with ample range of presenting new nutrient points in its bill of fare. The Godhead of Chipotle came up with five nucleus elements in which to establish the scheme of the constitution:

•Serving a focussed bill of fare

•High quality. moderately priced. convenient bill of fare points
•Operational efficiency
•Friendly staff
•Awareness and regard for the environment


Chipotle’s Strategy

Chipotle’s scheme is one of distinction. Specific types of nutrient that can be produced through local. environmentally witting. husbandmans at an low-cost monetary value point is a primary end. Offering natural nutrient raised from local. organic sellers that clients respect yet still at an low-cost. fast nutrient monetary value. creates a stand apart from the competition. Another manner Chipotle differentiates from the competition is through human resource patterns. Peoples from all ethnicities are brought together to bridge cultural and lingual spreads between both employees and clients. Chipotle has a squad dedicated to authorising. educating. and developing employees to increase internal publicities. cultural sensitiveness. and communicating accomplishments. The company prides itself on engaging from within and supplying employees with chances to turn. The cardinal component of Chipotle’s scheme is “Food with integrity” ( Gamble. Thompson. Jr. . & A ; Peteraf. 2015. p. 303 ) . Sourcing supplies from natural. organic. and sustainable. and environmentally friendly growers/producers is an indispensable scheme is keeping market standing. Not many eating house ironss. if any. can state they are consistent in this pattern. which makes Chipotle rise above the remainder. More and more people are doing the pick to take to eat healthier which makes Chipotle an first-class pick and topographic points them in a strategic topographic point in the fast nutrient industry.

With more healthy picks than other fast nutrient constitutions such as Taco Bell. consumers are more likely to take Chipotle. Another cardinal component to the strategic program is runing expeditiously in an aesthetically pleasing environment. Even though it is fast nutrient. Chipotle doesn’t offer a fast nutrient puting when dining in. With a modern subject of bamboo or stained concrete flooring. pendulum illuming. and out-of-door terraces where available. Chipotle has reduced the cost of edifice and keeping new constitutions but still managed to maintain the aesthetically delighting. not-so-fast nutrient atmosphere. How does Chipotle Mexican Grill’s competitory strength comparison against that of Taco Bell. Qdoba Mexican Grill. and Moe’s Southwest Grill?

Chipotle is non as visibly prominent here in the South as it is in other provinces compared to Qdoba Mexican Grill. but more so than Moe’s Southwestern Grill. In recent months. Chipotle expanded into the Memphis country in the Poplar/I-240 country in a new shopping centre near Target and Best Buy. surrounded by a assortment of other eating houses and concerns. Chipotle. Qdoba. and Moe’s all strive for market presence by positioning themselves in countries convenient to shopping centres. in strip promenades. and near concern centres. They are equal in the “Employment Practices” class as all strive to advance from within and offer rigorous preparation and development plans concentrating on expanded cognition through enfranchisement procedures. The differences that stand out. leting Chipotle to stand out strategically are in Customer Service. Menu Selection. and Quality. Chipotle prides itself on holding a echt concern for the frequenter by engaging persons from all walks of life and ethnicities. Whatever linguistic communication a client speaks. or cultural background they are from. there is likely a Chipotle squad member who can link with them to walk them through the dining experience. Qdoba Mexican Grill and Moe’s Southwestern Grill have attempted to link through client service and experience but are non doing as strong of a caput moving ridge as is Chipotle.

There is genuinely a alone dining experience to speak about at Chipotle that draws frequenters back for more. The bill of fare choice at Chipotle consists of the highest quality natural and organic choices from local agriculturists and husbandmans. Fresh sweet maize. organically adult coriander. organic chili and pablano Piper nigrums. grass-fed beef. and free-range poulet are merely a sampling of the illustrations of quality natural ingredients used by Chipotle Mexican Grill. Through high measurings of sustainability in sourcing of these natural ingredients to building of each eating house. Chipotle has easy earned a 10 in this class regardless of the monetary value point associated with the concluding merchandise. The quality of the nutrient served at Chipotle is ever above par. The cookery methods allow flavourful. robust. creative activities to be made in a short sum of clip without damaging the unity of the natural stuffs. Through consistent truth and quality steps. aesthetically delighting plating is besides displayed with each order. down to the containers in which to-go orders are placed.

What does an analysis of the informations in instance Exhibit 1 reveal about Chipotle’s fiscal and runing public presentation? Financial201220112010
Asset Turnover1. 6371. 5921. 637
Inventory Turnover179. 4188. 6189. 7
Liquid
Quick Ratio1. 8162. 6021. 873
Current Ratio2. 9253. 1833. 301
Investments/Shareholders
Net incomes Per Share8. 846. 885. 76
Profitableness
Gross Profit Margin27. 1 % 26. 0 % 26. 7 %
Operating Net income Margin16. 7 % 15. 4 % 15. 7 %
Net Net income Margin10. 2 % 9. 5 % 9. 7 %
Tax return on Capital22. 3 % 20. 6 % 22. 1 %











The stock list turnover ratio shows that they are able to turn over their inventory really rapidly. The plus turnover ratio shows that they are able to change over their assets into gross revenues. Their liquidness ratios are good because above 1 is good and above 2 is even better. Their Net incomes Per Share show that the company is swerving to increase profitableness and their stockholders should see an addition in value. The profitableness borders have been able to turn over the past old ages. The fiscal well being of Chipotle is stable and bettering. Unless something drastic occurs. expecting the rise in gross and value old ages from now. a positive hereafter will be in shop for Chipotle.

Key Strategic Issues

Chipotle has many strengths that make it an attractive company but they besides have some failings. In recent old ages. rivals have started offering healthier bill of fare options at lower monetary value points. Taco Bell’s cantina bill of fare is much like the Chipotle trade name in which it offers more of a igniter Southwestern flair than traditional Mexican dishes. The bill of fare pricing at Chipotle is higher but is due much in portion by the usage of organic and natural choices. some of which are hard to obtain in winter months. With hard turning seasons across the United States. Chipotle may hold to take to alter their bill of fare in winter months. With limited bill of fare points and ingredients that have monetary value volatility it may non be a smooth constitution in new provinces and states. Rivals are the largest menace to Chipotle. As antecedently stated. other fast nutrient eating houses are adding lighter menu to their bill of fare at a lower monetary value that Chipotle. With the continued high costs of natural and organic bill of fare options. bill of fare monetary values may hold to alter to maintain borders stable. Another impact to the bottom line could be lifting health care costs that may necessitate a displacement in employment for many eating houses. Chipotle has multiple chances to spread out into other provinces every bit good as internationally. With locations in the District of Columbia. Canada. the United Kingdom. and France. Chipotle directors should be good versed in the workings of International concern direction.

With enlargement into other states and the continued usage of locally grown and raised basics. Chipotle would stand to do significant net incomes in states like China and India. Adding ingredients autochthonal to each local country would advance the trade name clients have grown to look up to. As eating houses like Taco Bell and On the Border sell their merchandises in food market shops. Chipotle could follow suite and add net income to their bottom line. Restaurants like Swanky’s Taco Shop have intoxicant and beer on the bill of fare. now so does Chipotle in some provinces. Continuing this growing in other provinces would be a asset for growing every bit good.