After research and analysis of the casual and fact dining experience market sector, I have compiled recommendations to ensure that Chipotle maintains success now and for future. Chipotle has based its business strategy on serving organic and natural casual dining, therefor maintaining its competitive advantage over the current and future competitors in this industry. Implementing the following recommendations would lead to growth in market share and revenue for Chipotle franchise, as well as growth of market share and revenue for the ShopHouse and Pizzeria Locale. This will also strengthen the relationship between franchises and appeal to other’s in the industry to want to buy into the franchises. Therefor creating more money, expanding
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With market growing at the rapid pace that it is, it is recommended that Chipotle maintain relationships with suppliers that comply with the high supply needs of Chipotle. Throughout the years, Chipotle choice of high quality ingredients,as the company grows in size and market share, will increase in demand. To avoid a shortfall of ingredients, Chipotle will need to locate and secure these partnerships with suppliers who can meet the demand needed. For visual see Exhibit 5.
Strategic …show more content…
The fast/casual market is relatively new and for now Chipotle is at the top of the market, growing revenues from $1.08 billion in 2007 to $3.21 billion in 2013, as well as adding 891 stores. With very few competitors in this industry and a partner company in ShopHouse, the threat of new entrants is solely up to their success. The larger Chipotle and its partner ShopHouse gets, the lower the threat of competition will be. Also if they have new buyers into the franchise, this will decrease the threat of competition. If the Chipotle can lock into to organic suppliers for the years to come, Chipotle’s growth will be
With market growing at the rapid pace that it is, it is recommended that Chipotle maintain relationships with suppliers that comply with the high supply needs of Chipotle. Throughout the years, Chipotle choice of high quality ingredients,as the company grows in size and market share, will increase in demand. To avoid a shortfall of ingredients, Chipotle will need to locate and secure these partnerships with suppliers who can meet the demand needed. For visual see Exhibit 5.
Strategic …show more content…
The fast/casual market is relatively new and for now Chipotle is at the top of the market, growing revenues from $1.08 billion in 2007 to $3.21 billion in 2013, as well as adding 891 stores. With very few competitors in this industry and a partner company in ShopHouse, the threat of new entrants is solely up to their success. The larger Chipotle and its partner ShopHouse gets, the lower the threat of competition will be. Also if they have new buyers into the franchise, this will decrease the threat of competition. If the Chipotle can lock into to organic suppliers for the years to come, Chipotle’s growth will be