Chipotle Case Study

Chipotle

Since its creation in 1993, Chipotle has utilized founder Steve Ells’ leadership and culinary expertise to execute its vision of changing the way people think about and eat fast food. From the day Chipotle’s first restaurant opened its doors to now running 1230 restaurants in three countries; it has become a huge success and has caught the attention of leaders in the industry. One fascinating element of Chipotle’s strategy that has allowed it to differentiate itself from rivals is that it never tried to compete directly against front-runners such as its previous owner, McDonald’s, nor expand too quickly. Under the effective leadership of Ells, Chipotle has grown at a sustainable rate and has developed numerous capabilities that set it apart in the increasingly competitive restaurant industry.

Chipotle’s limited, focused menu is one of their core competencies because it is central to its operations and provides a unique value to the customer. Chipotle’s competitors have a difficult time competing against or imitating this competency because the times on Chipotle’s menu are tested and proven. Competitors don’t have the time or ability to test this concept or perfect their menu items. Chipotle on the other hand has been able to apply this limited menu style to the other ventures such as their two Shop House locations in Washington D.C. Another core competency is their dedication to high quality ingredients such as the organic cultivation of produce and naturally raised meat. Chipotle meets high customer expectations with their ‘Food with Integrity’ campaign. None of Chipotle’s competitors have taken as strong of a stance, nor have they moved as quickly to increase their efforts for sustainable, humane cultivation of their ingredients. Chipotle continues to lead the way in this area of fast-casual dining. Another key factor to the success of Chipotle is the speed and effectiveness at which their friendly and multi-skilled crewmembers serve customers....