Case study: Chipotle Mexican Grill
Dr. McKenna, J.D
Nov 1st , 2014
Restaurant overview, industry history and competitors
Chipotle bears its birth from Ells who started by setting up a small shop in the year 1993 in Denver, Colorado. By the year 1998 the chain had grown to sixteen stores which saw McDonalds introducing capital infusion for business expansion. In the 2005, the chain had grown to over 500 units and by January 26th, 2006, the restaurant went for an IPO. According to the National Restaurants Association the projected U.S. restaurants sales in the year 2012 was $631.8Billion. This is a reflection of nearly 4% of the Gross Domestic Product of the nation.
The total number of restaurants stood at 970,000 locations with employee capacity of 12.9M. Additionally, the total employees in the restaurants’ industry reflect a 10% of the total American workforce. There are three segments under which the restaurants businesses are classified. These are the eating places, bars and taverns, and lodging places restaurants. The list is represented in the classes; full service, quick service, and fast casual. CMG faces major competition from Qdoba in the fast casual segment and Taco Bell in the quick service segment.
CMG Business Operations
The chains of restaurants are located all over the world with major concentration in America. It worthwhile to note that all the CMG restaurants are wholly company owned and few of them are on partnerships. The internal affairs of an organization are a key factor to business growth. The management of the restaurant has realized this and has highly invested in the awareness programs. The restaurants are either end caps where they are found at the end of the supply chain line.
Primary and secondary problems facing leadership
Supply chain is marked by the presence of 22 independently owned and operated distribution centers. The restaurant relies on these locations to meet the needs of the general public....