Chipotle Inc Essay

1131 words - 5 pages

Introduction
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...

Find Another Essay On Chipotle Inc

Marketing Plan: Phase II Paper

1382 words - 6 pages /company.phpBearden, Bill, Ingram, Tom, LaForge, Buddy, (2003) Marketing: Principles and Perspectives, Copyright © 2003 by the McGraw Hill Companies Inc., New YorkChipotle Mexican Grill Website, 2009. Chipotle Restaurants. Retrieved onAugust 17th 2009, from http://www.chipotle.com/html/food.aspxKerin, Roger A., Hartley, Steven W., Berkowitz, Eric N., Rudelius, William, (2006), Marketing, 8th Edition, Copyright © 2006 By The McGraw Hill Companies Inc

Essay on Chipotle and its Economics - Complete with graphs, statistics.. etc

2209 words - 9 pages industry does this number represent (if available)? What is the dollar value of the company's assets? What is the dollar value of its net worth (owners' equity)?In the year of 2005, the total revenue of Chipotle was $627.7 Million dollars. "Chipotle Mexican Grill Inc. (CMG-$53.50 a share) was a January spin-off with an initial public offering price of $22 -- from McDonald's, the largest retailer of hamburger buns in the world. By year-end 2004, CMG

Asian Styled Restaurant: Strategies to Take Tea Café to the Next Level of Business

2212 words - 9 pages . In turn, the restaurant profits from the additional customers. According to Homecoming Chair Chloe Tadlock, the Homecoming benefit night at Chipotle was so successful that it had attracted more than 600 students in support of their cause (personal communication, May 4, 2014). The graphic image below is from the Homecoming benefit night at Chipotle. It is easily concluded, that a successful benefit night can have a sizeable impact on a sponsor’s

paper

661 words - 3 pages the old Tower Records storefront and for many franchises looking to build in the Castro. Chain stores like Trader Joe’s and Chipotle planned on coming in, but Castro residents kicked them out in June after protesting. Over the years, San Francisco has been in an ongoing debate between formula retail (large franchise stores) and mom and pop businesses. Some residents and visitors argue that they would rather see franchises than empty storefronts

Panera Bread

1795 words - 7 pages The legacy of Panera Bread began in 1981 as Au Bon Pain Co., It was founded by the two friends Louise Kane and Ron Shaich. Panera’s bakery cafes are located in 44 states over the U.S. as well Ontario, Canada. In May 1999, all of Au Bon Pain Co., Inc.'s business units were sold, with the exception of Panera Bread, and the company was renamed Panera Bread. Since those transactions were completed, the company's stock has grown thirteen-fold

The Mexican Cusine

755 words - 4 pages most popular. This evaluation is to encourage others to try different culture food. Authentic Mexican cuisine is not like a “chipotle” or “north of the border” fast food Mexican restaurant. The real deal is authentic Mexican meals. Questions I have regarding Mexican cuisines who originate most of the species? What utensils were used for cooking many years ago? The “Molcajete” is commonly used to soften and blend foods together like salsas. Why are

Marketing Plan: Phase III Paper

2036 words - 8 pages decline. One major reason for this is due to competitors like Chipotle Mexican Grill who might acknowledge the successful product or taco in this case, and try to come up with a better version to increase competition. Wedo's Tacos will have to overcome the excitement of big sales and profits that usually come in the early stages of growth, and focus on what the competitive reaction will be, rather than be negatively surprised when they respond

The Effects of Fast Food on the Body: Why Active Police Officers Must Remain in Shape

2321 words - 9 pages The Effects of Fast Food on the Body: Why Active Police officers must remain in shape. Many Americans have consumed fast food at least once in their lifetime, whether it is McDonalds or Taco Bell, Chipotle or Subway. Fast food can often times be the only readily available alternative food source in the busy everyday lives of the average American citizen. According to the Pew Research Center, on a daily basis 50 million Americans are served in

On Fast Food Marketing

2009 words - 8 pages consumer. The people in the United States are under no obligation to purchase fast food, the choice is theirs not of the fast food marketers, thus fast food manufacturers should bear no blame. Although the language in fast food advertising is sexually implicit, fast food manufacturers should bear no blame at all for the complacency of the consumer. The ad from Chipotle depicts a burrito completely wrapped in aluminum. The ad reads “Burritos so

550/Lawrence Sport Working Capital Strategies

6440 words - 26 pages increase cash flows and reduce their dependence on one major customer for cash and profits.BioFuel Energy CorporationBioFuel Energy Corporation is a start up Energy Company focused on alternate fuel sources. The company works with Cargill, Inc. who supplies most of the corn required to produce ethanol. BioFuel depends on Cargill to supply the corn, and Cargill depends on BioFuel to make timely payments to preserve the liquidity of both

Final Phase Marketing Paper

7513 words - 30 pages locations in California. While these companies are competitive with hamburger type products, neither company offers a wrap style sandwich such as "The California Wrap" from Jack In The Box.McDonald's offers three wraps: Grilled Ranch Chicken Snack Wrap, Chipotle BBQ Chicken Snack Wrap, and Honey Mustard Snack Wrap (McDonald's, 2009). Although all three items are made using wrap-style tortillas, none have the same type of ingredients. All are made

Similar Essays

Chipotle Inc: Rivalry Among Existing Competitors

1503 words - 6 pages into restaurants. BBC. Accessed on 27th May, 2014 from http://www.bbc.com/news/world-us-canada-27492193 Chipotle Mexican Grill, Inc. (2014). Chipotle Company About Us. In Chipotle.com. Accessed on 27th May, 2014 from http://www.chipotle.com/en-us/company/about_us.aspx Harvard Business Review. (2008). The Five Competitive Forces That Shape Strategy. HBR. Accessed on 27th May, 2014 from http://hbr.org/2008/01/the-five-competitive-forces-that-shape

Analysis Of Chipotle's Stock And Company

1683 words - 7 pages company. As of October 5, 2007, Chipotle now operates independently of McDonald's Corporation (http://www.answers.com/topic/chipotle-mexican-grill-inc).Mission Statement:"Food with Integrity" isn't a marketing slogan. It's not a product line of natural and organic foods. And it's not a corporate initiative that will ever be finished or set aside to make room for other priorities. It's a philosophy that we can always do better in terms of the

Fast Casual Dining: The Chipotle Mexican Grill Experience

1547 words - 6 pages Insider, Inc, 21 Mar. 2014. Web. 28 Mar. 2014. . We used information regarding Pizzeria Locale. 5. Spain, William. "Fast-food outlook: Intense competition, margin pressures." MarketWatch. N.p., 14 Jan. 2010. Web. 28 Mar. 2014. . We used information regarding the low

Initial Public Offering Paper

1549 words - 6 pages The focus of this paper is to examine and research the financing issues that an organization must face when going public. The team has selected Chipotle Mexican Grill, Inc. as the organization which has had an initial public offering in the last three years. The learning team will address registration, disclosure, and compliance issues and cost of issuance. In addition, the team will examine the impact on ownership control and return as well as