Chipotle Mexican Grill Is A Fast Casual Restaurant Chain Essay

Chipotle’s operating income increased from $108.2 million in 2007 to $532.7 million in 2013. This produces a CAGR of 30.43%. Rising market prices for natural meats and organically grown ingredients led to Chipotle’s rising costs for food and beverage from 31.9% of revenues in 2007 to 33.4% in 2013 and a CAGR of “only” 30.43%. Besides the operating income, the operating profit margin increased almost every year (10% in 2007, 13.4% in 2009, 15.7% in 2010 and 15.4% in 2011). In 2013 Chipotle had a profit margin of 16.6%, while in 2012 the profit margin was 16.7%. This effect should not be exaggerated, as the total revenue and operating income in 2013 was still higher than the total revenue and operating income in 2012. In addition, the net income almost quintupled from $70.6 million in 2007 to $327.4 million in 2013, generating a CAGR of

A wide variety of food and a part of the community versus which is healthier which are things that need to be considered when choosing what to eat. Chick-fil-a is a unique restaurant because chicken is the only meat on a meat-based menu. Chipotle, while not unique, is very good for the few items they make. Both restaurants are so good it is hard to choose which to go

Chipotle’s organizational structure is centered on the functional structure. The top levels of management include the co-CEOs, CFO, Head-Media Relations, and Chief Creative and Development Officer CCDO (Chipotle). Chipotle is a smaller corporation relative to its competitors, which allows it to focus on a vertical hierarchy based on functions. The fact that there are few departments demonstrates that Chipotle is still a growing corporation. Chipotle is a highly centralized corporation as all of its stores are corporate owned and they must follow the rules set by the corporate headquarters this involves the same menu throughout the country and the same prices. The restaurant business follows high levels of formalization a set of guidelines must be followed in order to comply with food and health regulations. There is low division of labor at the restaurant level as those cooking can shift to serving and cleaning when needed, allowing the allocation of labor to match whatever is needed in the situation. A unique aspect of Chipotle’s upper management is the fact that there are two CEOs (Feloni). The two CEO help ease job functions and enables them to be more accessible. Another managerial aspect of Chipotle is the through the position of restaurateur. There are 183 of these positions and they work to manage several Chipotles, bringing management close to each store (Investor’s Business Daily). From their organizational structure we can see they place high importance on

In 2012, the restaurant industry was a $435 billion dollar industry (Tristano, 2013).This amounts to a very large market that Chipotle has the opportunity to capture. In that same year the casual Mexican restaurant market totaled a whopping $31 billion in sales (Tristano, 2013). This was a 13% increase for the casual Mexican restaurant market and only amounted to 7% of the entire restaurant market. According to Tristano’s (2013) research, Chipotle Mexican Grill was the second fastest growing fast casual restaurant of all the fast casual restaurant markets in 2012.

In the year of 2005, the total revenue of Chipotle was $627.7 Million dollars. "Chipotle Mexican Grill Inc. (CMG-$53.50 a share) was a January spin-off with an initial public offering price of $22 -- from McDonald's, the largest retailer of hamburger buns in the world. By year-end 2004, CMG had 387 locations, generated $470 million in revenues and earned 21 cents a share."(Berko) Last year, CMG had 485 locations that produced $627.70 million the growth revenue was at 33.40% in 2005. "pushing tacos, burritos, salads, plus huge helpings of tired rice and boring beans reporting net income of 78 cents a share. This year, CMG expects to earn 71 cents a share and, according to Prudential Securities, CMG will report $1 billion in 2007 revenues (that's a lot of beans) and post higher earnings of 98 cents a share." (Berko) Although Chipotle is at an all time high I believe that it may well be trading its shares at to high of a price. Mcdonalds the best and most efficiently run profitable fast food restaurant is trading their shares at 17 times earnings. Today Chipotle is trading at an outstanding $56.07 Per share. I don't believe Chipotle is worth anything over $30 a share. Although the price of chipotle stock is too high there should still be a hefty revenue at year end 2007. Predictions suggest 1 Billion dollars. For 2005

Fascinated by the simple cost-effective business models he observed at small burrito shops in San Francisco, Steve Ells founded the first Chipotle Mexican Grill in 1993 near the University of Denver. By putting his own spin on the traditional casual dinning approach, Chipotle is now an enormously successful publicly traded company with over 1,000 locations in 38 states.

Chipotle is facing numerous challenges due to the fact that E. coli outbreak which requires the corporation from the key stakeholders to keep it under control and apply the new food safety protocols which can aid to bring the regular customers back. Although the main cause remains a mystery, Chipotle’s E. coli outbreak has been authoritatively declared officially over by the experts. However, since the poisoning outbreak, the impact of the reduced number of customers affects the profit which the company used to enjoy before such eventuality (Scholes 27).

Nowadays, we often hear the phrase time is money. Hence, the majority of people have no option but to live in a fast pace time and a fast food industry. The value of time has increased so significantly that people are focused on utilizing time focusing on their leisure/career than in the kitchen. Since the turn of the century, the number of fast food industry has evolved extensively to meet the demand of people in the market. Out of numerous fast food industries, Chipotle Mexican Grill (CMG) has established itself as one of the major competitors in the market. With over two decades of history, CMG has been one of the big boys in the fast food industry. It has created its own image as one of the fast-food distributors who focuses on naturally grown food. Established in 1993 by the founder Steve Ells in Denver, Colorado, CMG has more than 2,000 stores worldwide (Chipotle, 2016).

Chipotle’s kitchen and restaurant design intentionally places employees up front to reinforce a focus on service, through interaction with customers and individual attention by creating one burrito at a time (Chipotle, 2011, p. 5). While Chipotle combines basic ingredients to magnify the flavor they also stick to the basics when staffing their restaurants. Chipotle only has two shifts and cross trains their

The Chipotle Mexican Grille opened its first store in 1993 beginning a new category in the restaurant industry known as “fast casual” (About Us, 2014). This new category featured the “highest quality raw ingredients, classic cooking methods, and distinctive interior design-features that are more frequently found in the world of fine dining.” However, aside from the normally long wait in lines, an order could be taken and served in only a couple minutes. Currently Chipotle operates more than 1,500 restaurants internationally. The following pages will present a balanced approach to the effectiveness of Chipotle’s strategy analyzing financial performance, customer satisfaction, employee/learning and growth, and internal process.

When a company or person is doing well, there will be people who intend to copycat to get a little piece of the profits. It is very likely that the challenges facing Chipotle would drive consumers away from its menu to copycats offering other food types. According to Nicholas Fernandez, there are 5 fast-casual restaurants that could

Chipotle Mexican Grill was a concept turned reality by a gentleman by the name of Steve Ells. Chipotle Mexican Grill provides excellent Mexican cuisine driven by a concept of “Food with Integrity”. The first chipotle Mexican grill was opened in 1993 in Denver Colorado. By the end of 1995 there were three. In 1996 alone, Steve Ells opened five more Denver-area restaurants growing by a total of eight stores in three years. By 1998 Chipotle Mexican Grill was showing much promise. In order to meet their growth needs Chipotle took on outside investors.

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

Chipotle first opened in Denver in 1993 with a simple idea behind it, “food served fast didn’t have to be “fast-food” experience”, (Chipotle Mexican Grill, 2015). Prior to CEO Steve Ellis opening the restaurant chain, he himself was a chef. Since its creation, Chipotle has become a phenomenon in the restaurant industry and has experienced tremendous growth since it went public in 2006 with over 1,600 restaurants in Canada, United Kingdom, Germany, and France, with the majority located in the United States (Chipotle Mexican Grill, 2015).

Steve Ells is the founder and CEO of Chipotle. Steve is a trained chef and opened his first Chipotle store in 1993 at a former Dolly Madison ice cream store in Denver, Colorado. His goal was to serve high quality, delicious food quickly and in a “fast-casual” setting (Ells).