The purpose of my final research paper is to examine a publicly traded company operating in the U.S. The company of my choice is Chipotle. The final research paper will analyze Chipotle by bringing out its various stakes. It first introduces the company, and then followed by a brief history of the company. An overview of the company will also be addressed. The study will also include a SWOT analysis of the company. Among the above discussions will also be a situational analysis of the company, its strategy, strategic alliances, and possibility of future growth and development. In all the above analyses, one will be able to conclude the viability of the restaurant business in the various areas of Chipotle operations. From the discussions, a conclusive remark of the Chipotle Company will be drawn (Chris, 2014).
Chipotle begun in 1993 as a casual restaurant in Denver, Colorado. Steve Ells started the company. The primary principles of the company were to utilize locally available goods to offer utility to its customers. Its second restaurant was opened 2 years later. The second restaurant was opened from the profits that had been garnered from the first. Later, the third was opened courtesy of a loan from SBA (Small Business Administration) and some profits. Chipotle started expanding its operations in 1999, where it opened other branches outside Colorado—Columbus and Minneapolis, Ohio. The company continued its consistent service to its customers and by the beginning of 2001; it had McDonald’s as one of its biggest investors (Dugan, 2013). This catapulted its growth. However, in 2006, McDonald has spun off some its belongings and divested Chipotle. The step went public and was hugely reviewed on the New York Stock Exchange. What is important is that Chipotle, today, has more than 1500 stores and is considered a leader in the area of fast casual dining in the US.
Chipotle is a fast growing company that runs its operations in various countries like, the US, the United Kingdom, Canada, and France. In all these states, where the company operates, it has located its business in places where there is a large population like in the main urban centers and near tourist attractions, schools, and households with higher incomes. This enables the company to target trendy urban millennial and wealthier clients who need fast food rather than from the traditional fast food cafeterias (Satran, J. (2012).). By changing the technological environment, the company puts more emphasis on technology in offering service delivery to its esteemed customers. The company still has the potential to exploit new markets outside the US thus presenting an excellent opportunity for future development.
Chipotle focuses on two types of customer segments: a consumer who request for order catering for other people like in a meeting or event and those who buy food for themselves. The company is open from 11 am to 11 pm, thus targeting clients who eat snacks, lunch, and dinner. This clearly implies that Chipotle does not provide breakfast menu as compared to its competitors in catering industry like Qdoba or Panera Bread. Its sales are evenly distributed between taking away and eat-in customers. In the United State, the company runs catering services that target event planners and businesses just as its competitors. According to Satran (2012), the catering services of Chipotle range between $ 8 to $ 13 for an individual, and this represents 10-20 percent premium above the store prices.
Dugan, A. (2013). Fast Food Still Major Part of U.S. Diet. Gallup.com. Retrieved 2 January 2016, from http://www.gallup.com/poll/163868/fast-food-major-part-diet.aspx
Chris, A. (2014). Chipotle Investor Relations - Press Release. Ir.chipotle.com. Retrieved 2 January 2016, from http://ir.chipotle.com/phoenix.zhtml?c=194775&p=irol-newsArticle&ID=1900443
Satran, J. (2012). Chipotle Design Influence Palpable in Revamped Taco Bell, Wendy’s. Huffington Post