Chipotle External Analysis Essay

3410 Words Nov 24th, 2010 14 Pages
Restaurant Industry:
Chipotle Mexican Grille, Inc.

TABLE OF CONTENTS

Chipotle Overview 3
Industry Overview 3
Key Macro External Forces 4
Five Competitive Forces 4
Major Factors Causing Fundamental Changes 4
External Analysis 4
Key (or Critical) Success Factors 4
APPENDIX – 1 4
APPENDIX – 2 4 External Factor Evaluation (EFE) Matrix 4
APPENDIX – 3 4 Competitive Profile Matrix (CPM) 4
APPENDIX – 4 4
APPENDIX – 5 4 Content Topics 4
Bibliography 18

Chipotle Overview

Chipotle Mexican Grill, Inc. is a “fast-food service restaurant” under limited service category. It was formed in 1993 and went public in 2006. It has the largest market share in the Mexican-type food segment with a net income of more than
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Although this industry is expected to grow; a change in aggregate disposable income could negatively affect its revenues. During the recession, consumers tend to be more selective about how they spend their disposable income. Some are cutting back on eating out and electing to save money by eating in. Those who still eat out during the recession tend to choose lower-priced, value items. This trend has led to an intense competition between restaurants in order to convince customers that they can get the most bang for their buck at their establishment.
Legal-political-regulatory
There are many regulations involved in the food industry. One in particular is the food safety law. In California, this law requires all employees who handle food in a restaurant to earn a California Food Handler Card. Under the law, employees are required to take a training course followed by a test, at a cost of $15 per course (CRA, 2010). The extra time spent training the staff and the fee for the test itself certainly increases the cost of doing business for restaurateurs. The new nutrition-labeling law also plays a significant role in the food industry. According to the Association of Corporate Counsel, the law requires “nutrition labeling for standard menu items sold by chain restaurants with 20

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