Company Case Study Chipotle

When you walk up to a Chipotle location, often times you find yourself staring at a long line out of the door. However, most customers choose to wait. There are numerous reasons consumers decide that the benefits of Chipotle outweigh the setbacks of having to spend their time in line. The line moves quickly, the options are all yours, and the food is fresh. Chipotle seems to be thriving, at least in the eyes of the consumer. But, when you research, more in depth, into the company as a whole, what will you find? Many aspects need to be evaluated to decide whether or not Chipotle will continue their success. These categories include the challenges they may be facing, external forces, competition, and the effects of technology.
Three challenges that Chipotle is currently facing include slowing sales growth, supply chain problems, and challenges attracting and …show more content…
Not only is Taco Bell and other Mexican-style restaurants a competition, but also other chains such as McDonald’s and Wendy’s. These are really their only main competition. There is a mirror-like restaurant located only in select cities and headquartered in Austin, TX called Freebirds. The company offers burrito and bowl options parallel to Chipotle’s strategy. A customer is able to come in their restaurant and go in a line, ordering exactly what they want on their burrito or in their bowl. However, their share of the market is substantially lower than that of Chipotle’s.
The uniqueness of Chipotle’s strategy is their greatest competitive advantage. Although Freebirds has mirrored their strategy, their impact on the market is so small that Chipotle remains basically the only Mexican-style fast food restaurant that is set up how it is. Each burrito or bowl is made-to-order, with fresh ingredients, and right in front of the customer. Their strict standards appeals to the health-conscience consumer, and their convenience appeals to every