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Chipotle Restaurant: Company Analysis Case Study

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Entrepreneurial character of the Chipotle business

Chipotle offers a household burrito brand. The Chipotle restaurant offer customer services such as attractive eating environment. The burrito brand is a household name that defines a lifestyle among the loyal customers. Instead of just serving fast food, the Chipotle’s burrito is not a junk food. Rather, this meal is prepared from healthy ingredients in line with the health needs of the customers.

Despite the long process of preparing a single burrito, Chipotle restaurants serve their customers within the same waiting period as most of the fast food restaurants. Therefore, the decision to eat at Chipotle is informed by the need to maximize customer satisfaction. Besides, the business was founded on the principle of offering healthy Mexican food in the market at very competitive prices despite the opportunity given to customer to participate in selection of ingredients in each burrito or tacos.

How Ells promoted entrepreneurship within the organization

As the founder and CEO of the Chipotle restaurant, Ells created a unique menus and eating culture among the targeted clients in the most comfortable and warm environment.

He ensured that the restaurants were very spacious and has attractive finishes to give the business a competitive edge. The attractive eatery environment and unique arrangement of the dining area were designed to be very welcoming to families by Ells.

A typical customer would be attracted to the executive design of the Chipotle restaurant besides the delicious menu designed by Ells. Besides, Ells was able to expand the restaurant within a relatively short period through partnership with other establishments.

Insights that SWOT reveal on how Chipotle should be positioned in future

From the SWOT analysis, it is apparent that the unique menu, cultured eating environment, quality ingredients, healthy food, and relatively affordable food guarantees business profitability and sustainability in the future. However, the emergence of competition is currently threatening the expansion strategies of the business.

Apparently, the SWOT reveals that Chipotle should position itself as the restaurant offering natural recipes made from high quality and naturally bred animals and vegetables. Besides, the customers should be made aware of the aspects of proactive participation in selection of the best ingredients for their meals and observing the preparation process in a healthy environment.

Components of Chipotle’s business strategy

Quality menus and services: The restaurant is known for high quality ingredients and burrito brands prepared and served to specification of each client in an ambient eating environment. The service period for each customer is within five minutes just like the restaurants that serve fast food.

Differentiated products and cultured business: The restaurant serves series of burrito brands and other meals in restaurants that are designed to identify with the social and cultural beliefs of the targeted customers.

Changes that Ells should make to differentiate the company

The financial report bulletin of the Chipotle restaurant suggests that the company’s expansion plan for the next four years would increase the profits by almost a third. Besides, the restaurant has survived pricing backlash against the prediction of most of the analysts.

Therefore, the current pricing strategy should be modelled to be highly dependent on the variable of the customer’s value perception for the services at the Chipotle. The restaurant should introduce a series of coupons, gifts, and discounts that influenced the perception of the customers as filling the gap left by the difference in the current relatively high prices.

Besides, the restaurant should be differentiated by the Chipotle culture of round table service and customer participation in selection of ingredients and preparation of their orders.

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IvyPanda. 2020. "Chipotle Restaurant: Company Analysis." May 6, 2020. https://ivypanda.com/essays/chipotle-restaurant-company-analysis/.

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IvyPanda. (2020) 'Chipotle Restaurant: Company Analysis'. 6 May.

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