Business Proposal

Business Proposal

Chipotle Mexican Grill is a Mexican food restaurant that originated in Colorado in 1993. According to "Chipotle Company" (n.d.), "Chipotle first opened its doors in 1993, the goal was simple: to serve high quality, delicious food quickly with an experience that not only exceeded, but redefined the fast food experience” (The Business of Good Food). Chipotle is classified as a fast food restaurant therefore, they have many competitors. Some of their competitors include but are not limited to traditional sit down restaurants, Qdoba Mexican grill, Subway and other fast food choices. Along with battling competitors, Chipotle must find ways to combat the market and how the fast food industry is viewed by consumers.

In market conditions like the ones we are currently facing, households and consumers are looking to cut costs everywhere they can. One of the first cuts that individuals make is their eating habits. They will stick more to food budgets and stop eating out for dinner and or lunch. As consumers stop coming in due to these variables, management will need to try to figure out a way to keep the profits from decreasing at rapid rates. If looking at demand and profits on a graph, as demand shifts left (or decreases), so does the overall profit.

Everybody needs food and water to survive, these are necessities of life. However, food has many substitutes where there are cheaper options. For example, if you are craving burrito’s, it is cheaper to buy the makings at the super market than to buy one Chipotle burrito. Here is a quick run-down; Tortilla’s are approximately 1.50 per 12 pack. This breaks down to about .12 cents per shell. Then there is pinto beans and rice, which equates to about .50 cents per burrito. Now all that is left is the meat, (chicken for this example) which is 3.00 a pound, so for a burrito, maybe 1.50 and an extra .50 cents for cheese sour cream and salsa’s. Therefore, one burrito at home is less than four dollars per...