Chipotle Case Study Essay

3904 Words Mar 13th, 2013 16 Pages
Chipotle, Inc.

History of Chipotle Steve Ells is the founder and CEO of Chipotle. Steve is a trained chef and opened his first Chipotle store in 1993 at a former Dolly Madison ice cream store in Denver, Colorado. His goal was to serve high quality, delicious food quickly and in a “fast-casual” setting (Ells).

As Chipotle began to grow and expand, Steve took the initiative to learn about the way most of the food in the US is produced and processed. He was quite disturbed when he discovered that pigs were raised in confinement, produce was grown on factory farms with very little respect for the environment and dairy cows were confined and injected with hormones (Ells). This experience prompted Steve to meet with ranchers and
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According to its Company Profile in May of 2012, the prices of corn rose 28.1% from May of 2012 ("Chipotle Mexican Grill, Inc. SWOT Analysis."). The costs vary on what the costs of the food sources are at that point and time. Also, due to increasing minimum wages and various costs of livings, in different areas, this has an effect on Chipotle’s labor costs. Recruiting and training for management also is a big part of its costs and expenses ("Chipotle Mexican Grill, Inc. SWOT Analysis."). While organic food is more costly, its health benefits are believed to be worth and many are willing to pay the extra for it ("Chipotle Mexican Grill, Inc. SWOT Analysis.").

Target Market

For those who enjoy eating healthy and knowing your choices are fresh and made from no hormones added, enjoys eating at Chipotle (Elliot). The service is fast and friendly and the atmosphere is trendy. While Mexican food is the specialty, Chipotle has also introduced an Asian concept called ShopHouse Southeast Asian Kitchen in Washington D.C., a new part of its business (Elliot). ShopHouse Southeast Asian Kitchen offers the same assembly line method, consists of Asian toppings, like organic tofu, Chinese broccoli, grilled chicken stay and eggplant served over rice or noodles (Elliot).

Competition
While Chipotle serves fresh, organic foods and take pride in moving as much as 300 customers an hour in its better stores, there are still the competitors

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