1. Chipotle serves organic high-quality raw ingredients to create great tasting products. Chipotle purchases organically grown local produce and naturally raised meats from farmers located within 350 miles of the restaurant used. They have competed with local farmers markets, supermarkets and fine-dining establishments to gain a share of the farmer’s goods making it harder for new businesses to gain a piece of the industry.
2. Chipotle fits into the unique restaurant style ‘fast-casual’. The fast-casual segment only accounts for 3%-4% of overall restaurant industry, but it contributes $660 million to $880 million respectively. By Chipotle providing reasonably price dishes served within minutes, they became a powerful player in this market. …show more content…
With the first P of business principles, Chipotle hires ‘people’ who benefit by remaining with the company for a long time. The attractiveness for new hire employees to climb the ladder of Chipotle provides great success for veteran employees such as Costco. This gives Chipotle the advantage attracting the best, friendliest employees to take care of customers.
4. Chipotle has built a strong company reputation by keeping their brand constant with every store operating. Each Chipotle restaurant looked the same with their industrial decoration and simplistic interior setting. By walking into a different Chipotle, customers new to the location will be reminded of the enjoyable and gratifying past experiences.
5. Chipotle has developed and maintained long-term relationships with many reputable food industry suppliers. These suppliers provide high-quality and fresh ingredients that met Chipotle’s high standards and specifications. Due to these well-maintained relationships, suppliers were willing to comply with Chipotle’s pricing protocols and guidelines.
6. Chipotle provided some innovative marketing through its invitation-only rewards program “Farm Team.” The rewards program educated loyal and passionate customers about the things that made Chipotle unique and rewarded them for expanding and sharing the things they …show more content…
Chipotle’s business structure is easy to replicate with another food genre. Moe’s Southwest Grill and Qdoba made the mistake of trying to compete with Chipotle in the same food category. The ShopHouse Southeast Asia Kitchen is a prime example of using Chipotle’s fundamental principles and Chipotle realized they needed to test the waters. In 2010, an Italian restaurant called Piada opened using the same business structure and fundamental principles mirroring Chipotle. Piada has used imitation to become a successful business and shows other believe in Chipotle’s business structure.
2. Chipotle specializes in amazing tasting Mexican cuisine, but only provides four options on their menu. After a customer picks one of the menu chooses, then they will choose from 2 different types of rice, 2 different beans, 4 meats and lastly all the extras like salsa, cheese and guacamole. While these options provide customers many chooses, they do not offer Mexican options such as nachos, quesadillas or empanadas. Also, they provide the option of select beers and one margarita, but do not give more alcohol choices for customers.
3. Due to the type and quality of the raw materials needed by Chipotle, it can be very costly and complicate the supply chain to uphold its commitment to serve “food with integrity.” There are frequent imbalances in supply/demand in the organically produced food market that makes the products either unavailable or extremely expensive.
2. Chipotle fits into the unique restaurant style ‘fast-casual’. The fast-casual segment only accounts for 3%-4% of overall restaurant industry, but it contributes $660 million to $880 million respectively. By Chipotle providing reasonably price dishes served within minutes, they became a powerful player in this market. …show more content…
With the first P of business principles, Chipotle hires ‘people’ who benefit by remaining with the company for a long time. The attractiveness for new hire employees to climb the ladder of Chipotle provides great success for veteran employees such as Costco. This gives Chipotle the advantage attracting the best, friendliest employees to take care of customers.
4. Chipotle has built a strong company reputation by keeping their brand constant with every store operating. Each Chipotle restaurant looked the same with their industrial decoration and simplistic interior setting. By walking into a different Chipotle, customers new to the location will be reminded of the enjoyable and gratifying past experiences.
5. Chipotle has developed and maintained long-term relationships with many reputable food industry suppliers. These suppliers provide high-quality and fresh ingredients that met Chipotle’s high standards and specifications. Due to these well-maintained relationships, suppliers were willing to comply with Chipotle’s pricing protocols and guidelines.
6. Chipotle provided some innovative marketing through its invitation-only rewards program “Farm Team.” The rewards program educated loyal and passionate customers about the things that made Chipotle unique and rewarded them for expanding and sharing the things they …show more content…
Chipotle’s business structure is easy to replicate with another food genre. Moe’s Southwest Grill and Qdoba made the mistake of trying to compete with Chipotle in the same food category. The ShopHouse Southeast Asia Kitchen is a prime example of using Chipotle’s fundamental principles and Chipotle realized they needed to test the waters. In 2010, an Italian restaurant called Piada opened using the same business structure and fundamental principles mirroring Chipotle. Piada has used imitation to become a successful business and shows other believe in Chipotle’s business structure.
2. Chipotle specializes in amazing tasting Mexican cuisine, but only provides four options on their menu. After a customer picks one of the menu chooses, then they will choose from 2 different types of rice, 2 different beans, 4 meats and lastly all the extras like salsa, cheese and guacamole. While these options provide customers many chooses, they do not offer Mexican options such as nachos, quesadillas or empanadas. Also, they provide the option of select beers and one margarita, but do not give more alcohol choices for customers.
3. Due to the type and quality of the raw materials needed by Chipotle, it can be very costly and complicate the supply chain to uphold its commitment to serve “food with integrity.” There are frequent imbalances in supply/demand in the organically produced food market that makes the products either unavailable or extremely expensive.