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Chipotle Expansion Proposal

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on 30 March 2015

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Transcript of Chipotle Expansion Proposal

Chipotle Expansion Proposal
Ian G, Mac C, Taylor I, Mary Y, and Therese H
-Company Background

-Company Positioning

-Country Overview

-Country Differences

-Our proposed location

-HRM Strategy

Company overview & history
-Founded in 1993 by Steve Ells
-Serves Mexican style food
-in 2013 had sales of $3.2 B
compared to Tim Horton's $2.2 B

Sweden overview
- Swedes are becoming increasingly aware of their physical health and nutrition as well as, sustainably sourced food

- Strong believers to their sacred "Fika"

- Population of 9.7 mill with majority of residents in densly populated urban centers

- higher average income and purchasing power compared to that of other countries
- Established "Restauranteur Program"
-Restauranteurs can make over $100,000/year
-Get $10,000 bonus when an employee they trained becomes a manager

Chipotle International Business Proposal
Our HRM Strategy
Chipotle's Presence Worldwide
Company Values
Locally Sourced
Ethically Produced
Hofstede Graph
Hierarchical Structure
Employees are our greatest asset
Large emphasis on development
- A players in A positions
-Manager's are our A positions
-Look to promote from within
-86% of hourly managers and 96% of salaried managers were promoted from within
Recruitment & Selection - Use of Swedish company like Snagajob & implement psychometric for initial recruitment

Restaurateur's are given much more responsibility to oversee multiple stores and focus on employee development
HRM Strategy Cont..
Career & Succession Planning
- We are aiming to develop our leadership pipeline and begin to develop our Swedish employees

- We intend to abide by Swedish law and collective bargaining agreements.

The wage disparity will allow us to further fund forms of legally required indirect compensation.
- Local population 13% foreign

-Swedish fast food market is growing

- Consumers are most interested in healthy, sustainable, organic products

- Open foreign trade policy

- Transparent accessible laws

- High average income

- Best logistical point of distribution to Northern Europe
Let's go to Malmö
- Sweden's 3rd largest city

- 300,000 people

Our Compensation Strategy
- Prominent tourist location (over 1 million per year)

- Highest restaurants per capita in Sweden

- Well situated in Skane region and near shipping ports
- Location in the heart of downtown in a high traffic area

- Nearby transit currently drives heavy foot traffic

Performance Management
- We intend use employee recommendations and POS system criteria where high performing employees are given a bonus

Safety & Health
- We intend emphasize employee wellness programs and preventative healthcare
CHIPOTLE's 13 Qualities We look for in employees
High energy
Infectiously Enthusiastic
Employee & Labour Relations
- Aim to foster strong employee engagement and relations with unions.

We have struggled previously internationally from a lack of talent, and as we hire internally we need to have strong engagement amongst our employees

Chipotle also has to be sure not to alienate their suppliers and must have strong relations with farmer's unions.
HRM Strategy Cont..
Full transcript