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Chipotle Mexican Grill

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Baileigh O'Brien

on 15 December 2013

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Transcript of Chipotle Mexican Grill

Chipotle Mexican Grill Case Analysis
Presented by: Baileigh, Ben, Chase, & Thomas

Chipotle’s goal has always been to demonstrate that food served fast didn't have to be a "fast-food" experience
Key Issues
Issue 1
Recommendation 1
Recommendation 2
External Analysis
Internal Analysis
Issue 2
History & Background
External Analysis
Internal Analysis
Key Issue

Vision: Food with Integrity
Competitors: Rivalry High
Taco Bell
Qdoba Mexican Restaurant
Moe's Southwest Grill
Key success factors..
Secret Menu offers
Add to Marketing
Short Film Created Positive Feedback from customers
Continue this strategy
Implement New Marketing Techniques
Capitalize on first films success with television
Use short emotionally evoking films (During Super Bowl & Awards)
Films focus on different aspects on sustainable agriculture
Highlight different naturally-raise animals
Advertise new catering service

Marketing strategy "Word of mouth"
Only two commercials
Competitors Market very well
(Example Taco Bell Commercials)

Chipotle's Marketing
Based on Jim Harvey's speech structures
Buyers: High
High in fast food industry
Customers choices on cost
Changing trends common in fast food
Marketing / Use word of mouth
Menu being copied
Competitors offering healthy choices
Pricey menu
Limited international presence
Ethical Issues
Fast service
Invest in local farms
Brand Equity
Fresh, high quality, unique food
Restaurant Exterior
Over 1300 Restaurants
Steve Ells (Founder & CEO)
Founded in 1993 in Denver, CO
Fast Food serves all organic food (Mexican Dishes)

Local Sourcing
Fresh Food

"Decided he could shake up the traditional Mexican made-to-order burrito by adding gourmet ingredients"
Substitutes: Moderate to High
Fast-food option endless
Grocery store (ingredients)
Most fast food places now offering natural ingredients
New Entrants: High
Few entry barriers
Competitors can franchise at low cost
Offer 100% all natural meats
Interior (Restaurant Itself)
One step ahead of competitors
Increasing labor cost
Competition is Intense
Pressure to lower prices (economic)
Securities fraud lawsuits
Economic instability
Many fast food companies offer healthy options

New Marketing
International expansion
Meal delivery service
Menu expansion
Franchise Options
Expand the Menu
Financial analysis
Competition offering similar products and services
Competitors offering same ordering style
(copying customization & unique menu)
Taco Bell's New Menu Options
Leading to negative inventory turnover
Add breakfast (25% of fast food revenue)
Rumors of Secret Menu (Add awareness)
Add to revenue
Competitors offer morning service
Redefined fast food experience
High quality food (organic) with quick service (Food with integrity)
Fast Casual
External Analysis
Intense Competition
Step above competition with food quality
Internal Analysis
Brand identity- Local Farms for natural ingredients
Menu copied
Issue & Recommendations
Competition copying menu
Menu expansion

(2013). What is food with integrity. Chipotle Mexican Grill, Inc., Retrieved from

(2013) http://www.alteryx.com/resources/chipotle

Thompson, A. (2013). Chipotle Mexican Grill in 2012: Can It Hit a Second Home Run?. In A.
Thompson, M. Peteraf, J. Gamble & A. Strickland III (Eds.), Crafting & Executing Strategy (19 ed.). New York, NY: McGraw-Hill/Irwin.

Full transcript