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Chipotle Business Model Canvas

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Chris Dunphy

on 3 December 2012

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Transcript of Chipotle Business Model Canvas

Long Tail: Innovative New Business Model Background Fun Facts: Key Partners Partners: Channels Cost Structure & Revenue Streams Revenue Streams Multi Sided Platform: Unbundling: Freemium: Delivering Chipotle To-Go packages in grocery stores Nationwide Having a deli counter Chipotle in grocery Working with Chilli's- Using Logistics methods by supplying quality foods through the use of local farmers Free Taco giveaways at various sports events throughout the world Unbundling Taking distribution of locally grow foods from farmers to Chilli's Multi-Sided
Platform Having a deli counter Chipotle in grocery stores creating a one Stop shopping experience for customers Freemium Offering Free Tacos at various sports games based on reaching the goal for that game Long Tail Offering To-Go packaged Chipotle kits to grocery stores nationwide Impact Key Partners Cost Structure Increase Chilli's pricing with certain foods
Decrease distribution costs Strategic partnership with Chilli's
Increase in local farmers
Increase in distribution Co. Key Resources Key Activities Highering additional logistics distribution to meet demands Produce & maintain larger orders of product Increase in physical capacity of production facilities or local farms Ex: For every interception at the SuperBowl Chiptole will give away one free taco that following week on Tuesday from 11am-5pm must redeem code through Twitter Key Partners Customer Relations Impact Value Propositions Customer Segments Channels Revenue Streams

Rev Streams Impact Consumer reports ranked chipotle as the best Mexican fast-food chain in 2011

750,000 customers per day

1,262 restaurants in the U.S, Canada & Europe

1st nationally TV commercial in 2012 during the Grammy Awards, before just relied on billboards, radio ads and word of mouth.

Each restaurant is architecturally unique designed Local Farmers. All of Chipotles products are sourced within 350 miles of each store. McDonald’s Myth Coke and Budlight - Drink Suppliers Mark Crumpacker Seqence, LLC - Marketing Loomstate- Supplies Chipotle with 100% organic clothing Impact
Additional revenue because it is a new outlet for their products Key Partners Would now team up with a grocery store franchise Value Proposition Offer customers the same Chipotle they know and love in a new venue Channels Can now be advertised through the grocery store Revenue Streams Social Media Facebook, website, Twitter, Youtube Advertisement Universities, radio, billboards, store cups, bags, & signs/displays Integrated Channels Facebook promotes twitter and Youtube and other networks through its channel Channels are all integrated with customer’s routines by being in popular/ convenient places which many people are exposed to everyday. Radio, promotional events & advertisement promote facebook, which is 24/7 Cost Structure Chipotle’s current customers would be willing to pay for a $15 combo meal: Cutomer
Segments Segments Green consumers, health-aware consumers, local industries, and others Important Note: Burrito, tacos, quesadillas, burrito bowls, quasoritos, Chips, guacamole, kid’s meals, and salad. Considerations: vs. the individual items they currently pay for separately: Payments Include: Credit, debit, cash, coupons, or online with a credit or debit card. Scanable barcode on their phone for ease and convenience. Burrito, chips and salsa, and a drink Chipotle portrays itself as value driven for the consumer but is cost driven becasue: Most expensive Key Resources Avacados & Employees Lean cost structure
Low pricing of goods
Extensive outsourcing to local farms Most expensive Key Activities Maintaining natually raised pigs & chickens Channel Phases Awareness
After Sales Goal of expanding consumer pool beyond green consumers Friendly community atmosphere with streamlined service Value Propositions Value Simple menu including vegetarian Cutomer Relationships Relations Close relationship between Chipotle and customers Value-added sustainable efforts outweigh added costs Naturally raised food supports environmental consciousness High quality standards continuously maintained Activities: Key Activities Food With Integrity

Family Owned Farms

Naturally Raised Meat

Relationship with Customers

Face-to-Face interactions

Large Party Orders

Phone App where you can order your burrito electronically Key Resources Resources Well trained employees Unique building designs Promotional events/discounts Alcoholic beverages Quality assurance through local farmers Discounted rates Fresh healthly food to-go Alcohol beverages Questions Key Partners Value Propositions Channels Cost Structure Safeway,Raley's,Lenardi's,HEB Build it yourself & Convience Getting to a new customer Kits & Price range Reaching more customers Monitor portion control stores
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