Preview

Chipotle Mexican Grill Swot Analysis

Better Essays
Open Document
Open Document
1654 Words
Grammar
Grammar
Plagiarism
Plagiarism
Writing
Writing
Score
Score
Chipotle Mexican Grill Swot Analysis
Chipotle Mexican Grill
Introduction
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. In 2011, Chipotle expanded their …show more content…
Chipotle capitalizes on this by word of mouth marketing. Chipotle released “The Scarecrow” video marketing campaign and associated mobile game targeting GMO companies. In less than two weeks after release, the video had attracted 3.1 million views on YouTube, 2,000 likes and more than 4,000 comments. This truly exhibits the strength of Chipotle’s viral marketing (Handley, 2013). Other strengths include the use of all-natural ingredients, higher salaries for managers and employees, and online ordering with delivery in certain areas. Chipotle certainly has areas of weakness in their menu options, authentic Mexican food, advertising, and availability of sustainable products. See exhibit 1 for the full SWOT
Continue Reading
View Writing Issues

You May Also Find These Documents Helpful

  • Good Essays

    Chipotle Mexican Grill Case Analysis
    • 390 Words
    • 2 Pages

    Chipotle Mexican Grill Case Analysis

    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
    Read More
  • Satisfactory Essays

    Chipotle's Role In The Fast-Casual Industry
    • 195 Words
    • 1 Page

    Chipotle's Role In The Fast-Casual Industry

    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
    Read More
  • Powerful Essays

    Financial Analysis: Chipotle
    • 1753 Words
    • 8 Pages

    Financial Analysis: Chipotle

    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
    Read More
  • Good Essays

    Chipotle Mexican Grill Case Study
    • 706 Words
    • 3 Pages

    Chipotle Mexican Grill Case Study

    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
    Read More
  • Good Essays

    Chipotle vs Panera
    • 1784 Words
    • 8 Pages

    Chipotle vs Panera

    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
    Read More
  • Satisfactory Essays

    Chick Fil A Swot Analysis
    • 57 Words
    • 1 Page

    Chick Fil A Swot Analysis

    I do not believe other retailers should close on Sundays just because Chick- Fil-A is doing so. Every business has its ways to conduct operations. I think they should develop a culture that is unique to them; something that represent company’s core values. Just because it worked for Chick-Fil-A does not guarantee it will work for others.…

    • 57 Words
    • 1 Page
    Satisfactory Essays
    Read More
  • Powerful Essays

    Swot Analysis Chipotle
    • 1485 Words
    • 6 Pages

    Swot Analysis Chipotle

    In recent months, Chipotle expanded into the Memphis area in the Poplar/I-240 area in a new shopping center near Target and Best Buy, surrounded by a variety of other restaurants and businesses. Chipotle, Qdoba, and Moe’s all strive for market presence by positioning themselves in areas convenient to shopping centers, in strip malls, and near business centers. They are equal in the “Employment Practices” category as all strive to promote from within and offer strict training and development programs focusing on expanded knowledge through certification processes. The differences that stand out, allowing Chipotle to excel strategically are in Customer Service, Menu Selection, and Quality. Chipotle prides itself on having a genuine concern for the patron by hiring individuals from all walks of life and ethnicities. Whatever language a customer speaks, or ethnic background they are from, there is probably a Chipotle team member who can connect with them to walk them through the dining experience. Qdoba Mexican Grill and Moe’s Southwestern Grill have attempted to connect through customer service and experience but are not making as strong of a head wave as is Chipotle. There is truly a unique dining experience to talk about at Chipotle that draws patrons back for more. The menu selection at Chipotle consists of the…

    • 1485 Words
    • 6 Pages
    Powerful Essays
    Read More
  • Good Essays

    Chipotle Mexican Grill Research Paper
    • 669 Words
    • 3 Pages

    Chipotle Mexican Grill Research Paper

    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
    Read More
  • Satisfactory Essays

    Chipotle Observation
    • 318 Words
    • 2 Pages

    Chipotle Observation

    It has come to my attention that there has been a decrease in productivity in the overall staff. At Chipotle, we must pride ourselves in being the fastest and most effective company around. In an effort to increase productivity and maintain 100% customer satisfaction, I suggest that all employees that were hired before April 10th, 2016, should undergo mandatory Productivity and Efficiency Reform Training.…

    • 318 Words
    • 2 Pages
    Satisfactory Essays
    Read More
  • Powerful Essays

    Chipotle
    • 11002 Words
    • 45 Pages

    Chipotle

    In 1993, Steve Ellis founded Chipotle Mexican Grill in a former Dolly Madison Ice Store in Denver, Colorado. A former student of the Culinary Institute of America in Hyde Park, New York; Steve Ellis became a line cook for large restaurant in San Francisco, California. Taking what he learned, Ellis decided to open a restaurant near the University of Denver campus using a loan from his father of $85,000 dollars. He calculated that in order to turn a profit he would have to sell 107 burritos a day! After one month in business the little restaurant named “Chipotle” (the Mexican Spanish name for a smoked, dried jalapeno chili) was selling over 1,000 a day.…

    • 11002 Words
    • 45 Pages
    Powerful Essays
    Read More
  • Satisfactory Essays

    Chipotle Research Paper
    • 250 Words
    • 1 Page

    Chipotle Research Paper

    Did you know too much sugar contained in diets such as; chips, sandwiches, burgers, pizza and soft drinks, can make your hair fall off? Most fast foods are sources of many health problems, such as overweight, heart diseases and Peptic Ulcers. However, there are some nutritious types of these foods including; grilled chicken nuggets, salads, fruit cups and milk because they contain a low level of calories. Several restaurants have learnt the importance of healthy eating, and are offering wholesome menus.…

    • 250 Words
    • 1 Page
    Satisfactory Essays
    Read More
  • Good Essays

    Chipotle Analysis
    • 361 Words
    • 2 Pages

    Chipotle Analysis

    This is crucial for a high quality presentation, because it helps support your main ideas and helps give credibility to your argument. In addition, data and graphs make it easier for your audience to interpret your ideas. This was also one of my negatives from the first board evaluation on the external analysis summary; therefore, it will be interesting to see going forward if you will change and add more data/numbers in your final presentation. An idea/theory that needs to also be discussed more is the lack of international expansion of Chipotle. This was briefly discussed in the presentation and could be a very good strategy that Chipotle needs to take in the future. In addition, since Chipotle only has 20 international locations it seems that there is more market or geographical challenges that Chipotle faces and can’t figure out how to…

    • 361 Words
    • 2 Pages
    Good Essays
    Read More
  • Powerful Essays

    Chipotle Ethical Issues
    • 1502 Words
    • 7 Pages

    Chipotle Ethical Issues

    Chipotle is known for their delicious burritos, bowls and tacos that are filled with all natural ingredients. They claim to not use any artificial flavors or fillers whatsoever. They get all of their healthy ingredients from local farms and not factories. They were also the first national restaurant chain to disclose the GMO ingredients in their food. And now they claim to not use any ingredients that are GMO. Chipotle looks and seems like the best and healthiest “fast food restaurant” that there is. They have also tried to tackle a very big but much ignored ethical issue that has been going on in many work places across the United States, which will be discussed later on.…

    • 1502 Words
    • 7 Pages
    Powerful Essays
    Read More
  • Good Essays

    Chipotle Mexican Grill
    • 441 Words
    • 2 Pages

    Chipotle Mexican Grill

    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
    Read More
  • Good Essays

    Whole Foods Swot Analysis
    • 454 Words
    • 2 Pages

    Whole Foods Swot Analysis

    Our group researched and conducted a SWOT analysis on Whole Foods Market. The strength is being one of the top grocers in the U.S. by providing healthy and organic food. The option to purchase high quality natural food is available for consumers who are health conscious. The weakness for Whole Foods is viewed as a luxury shopping destination. Lower and middle class people with limited finances cannot afford to shop there on a regular basis. The opportunity is available to expand within international markets. Whole Foods can explore nonexistent markets internationally with the potential for growth. The threat is competitors will have an interest to gain consumers for their business. Competitors can utilize many avenues such as advertising and commercials to attract customers.…

    • 454 Words
    • 2 Pages
    Good Essays
    Read More

Related Topics