Chipotle

Overview:

Chipotle works hard to not deplete the earth of resources and serving hormone- and antibiotic-free poultry and meat. Founded by Steve Ells in 1993 and based in Denver, Colorado, Chipotle Mexican Grill, Inc. (Chipotle) is a chain of restaurants in the United States, Canada, and today around the world specializing in burritos and tacos. The name derives from "chipotle", the Mexican Spanish name for a smoked, dried jalapeño chili pepper. Ells’s father loaned him $85,000 on the basis that the restaurant would sell 107 burritos per day to be profitable. After one month the restaurant was selling over 1,000 burritos a day. The restaurant is known for its large burritos and also its assembly line production which uses natural ingredients. Chipotle Mexican Grill, Inc. and its subsidiaries (Chipotle) operate restaurants throughout the United States, as well as two restaurants in Toronto, Canada and two in London, England. Given a strong focus and dedication from the top to serving a quality product to its consumers, Chipotle has enjoyed a massive success in recent years. Implementing ground-breaking strategies will further allow the company to increase and further its growth.

Key Problems and Issues:

Chipotle is known for being different in the restaurant industry by using fresh ingredients, organic items, naturally raised meat free of antibiotics and fed with a vegetarian diet and its milk sourced from dairies that provided pasture access for their cows. Chipotle’s restaurant industry now faces a heighten in food cost and shortened supply of organic items and also an intense competition from the Cantina Bell menu by Taco bell that launched on July 5, 2012. Another issue with Chipotle’s strategic move is the possibility of brand confusion. The Chipotle name has become synonymous with Mexican food, however; there may be uneasiness when it comes to customers considering an Asian food restaurant that is backed by Chipotle. Chipotle has experience with a very...