Chipotle Mexican Grill
Introduction and Issues
Chipotle has proved an effective performance with its Mexican Grills. In the same manner, Chipotle is building another venture which is the Asian ShopHouse. The ShopHouse is based on much the same method with the Mexican Grill yet it has a unique menu. The issues talked about here are, first, whether Chipotle can make the same accomplishment with its new venture, the ShopHouse by utilizing the same system related to the Mexican cooking. Second, whether it can profit by selling healthier more natural fast food. Lastly whether it can effectively venture into global markets and challenge one of biggest worldwide fast food eateries, McDonalds. Chipotles vision is to "change the way people think about and eat fast food", by serving “food with integrity”. The following provides an industry examination and inside investigation of the organization before giving recommendations.
Industry rivalry: High
According to the case Chipotles leading competitors are Taco bell, Moe’s southwest grill, Qdoba and smaller chains Baja fresh and California tortillas. Fast food restaurants (such as Chipotle) that offer fresh quality ingredients are a threat to other regular fast food restaurants and are viewed as main attributable loss of customers. However the top competitors are able to offer and same services as Chipotle.
Threat of Substitutes: Moderate
Chipotles food offerings can be substituted with store bought ingredients. Also with the increase in stores offering a selection of organic ingredients, customers can opt to making their own burritos at home. But, since most fast food restaurants are starting to use natural ingredients, even though Chipotles offers a wide selection of Mexican foods, customers have a choice to try other Mexican food restaurants offering different selections with natural ingredients.
Buyer Power: High
As a buyer, one has unlimited options of restaurants offering different costs, from...