Chipotle Case Study Summary

...

A couple possible strategies that chipotle could employ is expansion of their market advertisement. If they promote their green efforts and the quality of their service in such a way to those who wouldn’t think of chipotle as a first option, they may be able to attract a strong amount of first time customers who, if the food is good enough, will come back and spend more money as chipotle in the future, creating chipotle’s return on their marketing investment. Another possible strategy could be for Chipotle to create a new low cost topping option to a few of their stores and see if the return on investment is worth it then expands it to all their stores, location permitting.

My detailed strategy includes an investment on Chipotle’s half to in the end secure a cheaper price on products from the farmers who source Chipotle. The investment would be 15 million dollars, 5 million investment to three of Chipotles biggest ingredient sources. The investment would be to create eco-friendly, renewable energy for the farm. The goal is to create cheaper electrical bills for the farmers as well upgrade other aspects of the farm to make it greener so that the farmer can charge a cheaper price for their goods and still make as much money. Chipotle then will absorb the pay-back period so that they can immediately receive discounted goods. Chipotle with then pay themselves back through the difference in spending on the ingredients. This creates higher profit margins for Chipotle and after the estimated 5-year payback period, chipotle will be able to avoid price increases as well as make more money while charging the same price.

The past financial trends for chipotle have bene up and down, however after my strategy has been implemented Chipotle should be able to stabilize their income, and have a little more than the year before. Chipotle could take a small hit and could bounce back fully and I think that if my projections are off, that chipotle will be fine no matter if they take a year or two to sort things out a bit and make sure their revenues and spending are on the right track. My strategy has the potential to work because currently the greener you are as a person and as an organization the bigger the role you will be in our attempt to green up earth. I also think my strategy will work because if I was the farmer I wouldn’t turn the offer down because it can only help me out as a person and as a farm epically in the long run.

In general, Chipotle has expanded since its origination, effectively and incredibly. They have created a strong working business model that will keep them a strong business for many years to come. They have employed an effective and efficient work place strategy that has proved itself time, money and space efficient. The numbers have been up and down in the past few years but have been on the up and up since their dip. Currently they are a still expanding and strong essence in the fast-casual dining world and their recent market developments have proved to be money effective. However, they are approaching a gray area with their market developments where they are confusing the chipotle name with their new restaurants, pizza and Asian food. My strategy will secure cheaper sourcing for many chipotle locations and in the long run create greener farms and more revenue for Chipotle.