Chipotle Case Study Essay

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1. Chipotle could provide home delivery as part of its business model to reach markets slightly beyond the fast-casual restaurant industry. Home deliveries could allow for Chipotle to reach customers who are unable or unwilling to come to the restaurant, but still want their products. It could provide employees with bicycles, for restaurants located in large cities or near college campuses, or allow employees to use their own vehicles and compensate them for gas.
2. Chipotle could open a drive-thru, which would allow customers to order their food without leaving their car. There is possible negative consequences of this, which are that many people in the line could indicate that the restaurant is really busy, but in reality, inside the restaurant
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The company could expand their marketing and promotion. Chipotle has high quality product, but they do very little to promote their products to new customers. With more competitors entering the fast casual market, Chipotle needs to remind their customers of how great their products are. One way to increase promotion is by offering loyalty cards. Direct competitors such as Qdoba and Panera Bread offer loyalty cards to customers that keep their customers coming back.

4. Chipotle could take advantage of large margins provided by alcohol sales. With the limited alcohol selection, they could open the door more without being a full service bar. Many restaurants gain huge profits on the large margins provided from draught beer selections. Certain restaurants have created self-serving systems which are controlled by wristbands keeping lower labor costs and giving customers the opportunity to sample various beers.
5. If they want to keep all the menu items they should at least add to the current selection. They could add health options along with the normal menu items. This would allow them to reach more of the market.
6. Chipotle could do absolutely nothing. The company could make no changes and stay on the strategic path that they are on. Chipotle’s strategic plan has helped the company grow a loyal customer base over the years so it may not be necessary to fix what is not broken.

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