Question

For chipotle... gather Insight from a SWOT analysis and how these raise important strategic issues

Answer 1

Chipotle :

Chipotle Mexican Grill is a reputed American restaurant that was founded by Steve Elles in 1993 in Denver, Colorado. Chipotle is known for serving Mexican American cuisine to more than one million customers daily. This restaurant operates 2491 stores, mostly in the USA and in a few international locations like Canada, France, Germany, and the United Kingdom.

The reputation of the company is strongly associated with providing fresh meal items, while its marketing and branding based on “food with integrity” which focus towards its ingredient from ethically minded suppliers.

SWOT analysis of Chipotle:

1. STRENGTHS: Chipotle Mexican Grill is widely famous for providing a simple regular menu for its customers that comprises of salad, tacos with food that involves fresh ingredients, cutting knives, pots and pans, and stoves and grills.they never use Microwave or Freezer in restaurant.Chipotle Mexican Grill provides high-quality food, yet ensuring that the price being charged is reasonable for their customers.Minimum Price of $1 to $8 dollars.You can order food on Chipotle’s app a few minutes before coming to the restaurant.
2. WEAKNESSES: Chipotle Mexican Grill depends upon a limited number of suppliers because of the outbreak of E.Coli in 2015.Chipotle is known to have high sodium content in its food, which can lead to high blood pressure so it is considered as a major weakness.

3. OPPORTUNITIES: Chipotle has a small number of its restaurants outside the U.S. Most of revenue comes from digital orders.so they have focus upon delivery.Increase in revenue because of their serving , quality , price made increase in reputation.And they also collaboration with Doordash which will allow customers to avail free delivery on orders above $10.

4. THREATS: Chipotle went through a series of health-related incidents, ranging from norovirus to E.Coli In 2015 so that the sales gets declined from the year 2015- 2016. Chipotles encountered difficulties in their supply of pork. The growing competition in the Tex Mex business may pressurize Chipotle and have negative implications over its share of the market.