Chipotle Mexican Grill Issues Report

This report examines the challenges faced by Chipotle Mexican Grill in a competitive fast-food market. It highlights the company's past success driven by its conscious capitalism approach, but notes the current difficulties in maintaining growth and market share. The report suggests diversification of products and services, and geographical expansion into new markets (such as China and India) as key strategies to improve revenue and stock market performance. Alternative recommendations include focusing on food manufacturing in addition to restaurant operations. The conclusion emphasizes the need for Chipotle to adapt and expand to maintain its competitive edge and public credibility.

Running head: ISSUES AT CHIPOTLE MEXICAN GRILL
ISSUES AT CHIPOTLE MEXICAN GRILL
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1ISSUES AT CHIPOTLE MEXICAN GRILL
TABLE OF CONTENT
SYNOPSIS OF REPORT................................................................................................................2
PROBLEM......................................................................................................................................2
RELEVANT CONCEPT.................................................................................................................2
RECOMMENDATIONS.................................................................................................................3
ALTERNATIVE RECOMMENDATION......................................................................................3
CONCLUSION................................................................................................................................4
REFERENCE..................................................................................................................................5

2ISSUES AT CHIPOTLE MEXICAN GRILL
SYNOPSIS OF REPORT
The report sheds light on the survival issue of Chipotle Mexican Grill, a US based fast
food service provider, amidst growing contemporary competition and difficulties stemming from
that in order to meet growth expectations in the stock market since the company’s share are
publicly held.
PROBLEM
The fast food and casual food market grew enormously in past couple of years. By 2014
US saw proliferation of new entrants to the food service sector that has become attractive domain
for business startups due to the possibility of higher revenue earned from it. The concern of the
food supplier is the survival the competition and maintains its own good health in the public
exchange in presence of many sellers in the food service sector of recent time.
RELEVANT CONCEPT
Chipotle Mexican Grill managed to mark its presence within few years of coming into
operation in 1993 as fast growing restaurant chains in the US food service market (Cheretis &
Mujtaba, 2014). The brand image was quite strong due to the trend and edge it has maintained in
its quality of food. The driving strategy lying underneath the success of the company is the
practice of conscious capitalism that focused on serving of food with integrity. Conscious
capitalism stands on the major notions of: Conscious leadership, Stakeholder orientation,
Conscious culture and Higher purpose (Schwerin, 2012). All these add up to the strongly present
supply chain of the restaurant chains that serve with integrity from the harvests of the food grains
to end result represented on the customer’s plate.

3ISSUES AT CHIPOTLE MEXICAN GRILL
RECOMMENDATIONS
The logical stance an organization can take at this situation is to diversify its production
and services. Overtime the global connectivity and resultant increase in the information
communication, share and exchange of culture and lifestyle, economic activities and businesses
taking place, the markets have been growing for various goods and services due ti changes in
taste and preferences and adoption and experiments of people (Mackey & Sisodia, 2014). Amidst
this, if Chipotle set up some of the business in other lines or production that have higher revenue
growth and profitability then the recent problem of drooping health of the company in the stock
market can be taken care of. The company may focus on food manufacturing other than the
restaurant business.
ALTERNATIVE RECOMMENDATION
Geographical expansion along with extension in domain of production can be important
strategy to boost the revenue earned by Chipotle. The company should set up stores and outlets
not only in different states of the United States but to different countries of the world targeting
huge market economies like China, India and Asian countries that have culturally rich taste for
variety of foods including continental foods (Wang, 2013). Chipotle can come with a
transformed range of services and menus specially design to match the taste and preference and
market trend of such countries and provide the same in order to capture the market share over
time.

4ISSUES AT CHIPOTLE MEXICAN GRILL
CONCLUSION
It can be concluded from the above case study that when the market becomes competitive and
concentrated at one place, it is required for an established company like Chipotle Mexican Grill
to strengthen its business and generate more revenue by expanding the service operation
geographically as well as extending the services by focusing into new line of production and
service provisions. This way the company can evoke and maintain a strong image as well as
existence in the stock market gaining more public credibility.

5ISSUES AT CHIPOTLE MEXICAN GRILL
REFERENCE
Cheretis, D., & Mujtaba, B. G. (2014). Maximizing long-term value and conscious capitalism at
Whole Foods. SAM Advanced Management Journal, 79(3), 4.
Mackey, J., & Sisodia, R. (2014). Conscious capitalism, with a new preface by the authors:
Liberating the heroic spirit of business. Harvard Business Review Press.
Schwerin, D. A. (2012). Conscious capitalism. Routledge.
Wang, C. (2013). Conscious capitalism firms: Do they behave as their proponents
say?. California Management Review, 55(3), 60-86.