Chipotle Mexican Grill SWOT Analysis
Chipotle has been operating in restaurants industry. It was founded in July 13,1993 by Steve Ells who has been serving Chipotle in capacity of Co-CEO and Chairman. Its headquarters based in Denver, CO United States.
Strengths
• Strong brand reputation among consumers for being ethical and quality food provider.
• High quality foods; healthy and tasty foods.
• All the chipotle restaurants are under the ownership of company. Therefore, it has strong ownership on all the Chipotle restaurants.
• Strong organizational structure; people in higher management are skillful and have strong strategic plan for company growth.
• It has approx. 38,000 employees serving in 1500 restaurants at different locations.
• International presence in UK, Canada and France.
• Better standing in financial statements; percentage of assets are much higher than liabilities.
• Strong relations with supplier.
• Low marketing and advertising cost.
• Offers online ordering facility to customers.
• Pay high to employees as compared to managers and give incentives to managers for inducting quality human resources in company.
• It has no franchises thus, they can easily maintain the quality benchmark.
• Active involvement in CSR by sponsoring different events.
Weaknesses
• High prices of food products as compared to competitors.
• It offers limited menu to customers.
• High dependency on word of mouth.
Opportunities
• Market penetration in US and Canada by increasing number of restaurants locations.
• Adopt franchising model for global expansion.
• Increase variety of foods.
Threats
• Strong direct competitors; Panda Restaurant Group, Inc ,Qdoba Restaurant Corporation and Taco Bell Corp.
• Facing fierce indirect competition from McDonalds, Starbucks, Yum! Brands, and Sodexho.
• Competitors cost are lower than Chipotle that might be the reason they have been offering food on lower prices.
• Substitutes can easily fetch market share.
• Economic slowdown.
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