Chipotle Mexican Grill, Inc. (CMG) was founded in 1993 by Steve Ells (University of Oregon Investment Group, 2012). It has since grown from a single restaurant, to operating 1, 230 fast food restaurants across the United States, United Kingdom, and Canada. Each of these restaurants features creative, original Mayan art interior designs. The company’s main menu focus is the provision of burritos, burrito bowls, tacos and salads. Realizing its success, McDonald’s became the biggest investor in CMG, which led to its rapid expansion and growth across six different regions, which al have one central reporting location. The revenue of growth of the company is stimulated by repeat ...view middle of the document...
It was his vision to create a place where customers could enjoy delicious food made from the finest ingredients quickly and affordably (Chipotle, 2014). Essentially, Chipotles founder belief that fast food need not be low quality, and that quality could be maintained even at low cost prices. This is the philosophy upon which the company has been able to build a successful fast food restaurant brand within a tightly contested market. Success for the company may be categorized into two segments; financial and non-financial. Financial success has been achieved in terms of the growth seen in the numerous new restaurants the company has been able to open. CMG’s net income for 2013 is reported to be well above 300 million US dollars. The crème de la crème of the financial success of CMG is, of course, its subsequent listing on the NYSE which opened its doors to the public.
Non-financial success for the company is characterized by the fact that Chipotle has been able to firmly actualize their vision and mission based on the food with integrity philosophy. An interesting thing to note about food with integrity is the fact that it cuts across both suppliers and customers. CMG does not support the use of antibiotics in ranching, which is seen by many to be environmentally unfriendly, and cruel to animals. Instead, CMG encourages the use of natural bred meat, essentially attracting customers who would otherwise be lost due to their conservatism. Over and above, its vision of serving customers with high quality and delicious food quickly has been successful and has seen the company expand into a new sphere within the fast food business called the fast-casual. To this end, CMG has opened a new type of restaurant base on the fast-casual dining concept, where customers can enjoy world class cuisines with the same fast food convenience.
How the Porter’s five Forces of Competition Impact CMG
Bargaining Power of Suppliers
In keeping on the supplier force, it is important first and foremost to be seized of the fact that CMG has a detailed term on the products its sources. It requires them to be naturally bred an organic, which is in line with its mission statement of food with integrity. From a logical point of view, one cannot help but foresee that the number of suppliers will be limited because of the terms for supply which many...