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SWOT Analysis of Chipotle || Chipotle SWOT Analysis

 

Chipotle Mexican Grill is one of the most reputed American-based restaurants. The founder of Chipotle was Steve Elles. They are best known for Mexican American (Tex-Mex) cuisine. It is working in many prime locations such as America, UK, Canada, Germany, and France with 2491 stores. The success of Chipotle is due to its offerings and fresh food. Its branding and marketing strategy also plays an important role in the success of Chipotle. They also provide a casual dining experience to their customers. Let’s discuss Chipotle SWOT Analysis. In this way, you can evaluate the dynamics and work of Chipotle with this SWOT analysis.

 

Company Name: Chipotle Mexican Grill, Inc

Founded: July 13, 1993, Denver, Colorado, United States

Founders: Steve Ells

CEO:  Brian Niccol (Mar 5, 2018–)

Head office: Newport Beach, California, United States

Category: Restaurant

Area Served: United States, Canada, United Kingdom, Germany, France

Industry:  Fast causal Restaurant

Number of locations: 2680, in the United States as of October 27, 2020

Division and Subsidiaries:            

Pizzeria Locale (2013–present)

ShopHouse Southeast Asian Kitchen (2011–2017)

Tasty Made (2016–2018)

Employees (July 2020):  83,000+

Annual Revenue (2019): the US $ 5.59 billion

Net income | Profit (2019): the US $ 350.16 million

Burger King Competitors: Qdoba Mexican Eats, Baja Fresh Mexican Grill, Moe’s Southwest Grill, and Rubio’s Coastal Grill.

 

SWOT Analysis of Chipotle || Chipotle SWOT Analysis

Strengths of Chipotle (Internal Factors):

  • Tasty Food:

Chipotle offers a simple but delicious regular menu in the form of salad, burritos, tacos, and burrito bowls. Due to this quality, they are still going strong day by day. It is a major strength of Chipotle in the food industry.

  • Traditional Way of Cooking:

The main attraction of Chipotle is their traditional style of cooking. Their dining experience is also comprised of classic cutlery and fresh products. This kind of cooking style really attracts the customer that’s why they always prefer Chipotle for dining.

  • Best Quality Food:

Fresh and clean products and ingredients are the biggest strength of Chipotle. They promoted this factor as ‘’Food with Integrity’’ that is really useful for consumers.

  • Fresh Food:

It is a fact that Chipotle does not take any freezer and microwave oven in their restaurants which shows that they provide fresh food. Their ingredients such as spices, herbs, meat, rice, and so on are fresh and healthy.

  • Affordable Prices:

Chipotle offers high-quality food at a reasonable cost and make sure that their customer is fully satisfied with their meal and service. That’s why people consider Chipotle due to its reasonable offerings.

  • Reliably-Sourced Meat:

The meat they used in their food is completely fresh and healthy. They also ensure sustainability and animal welfare programs in order to contribute their responsibility towards society and nature.

  • Managing Relationship with Dealers:

The biggest strength of Chipotle is its close association with trusty suppliers. That’s why they never face any difficulty in quality and supply chain networks. This thing makes them strong and valuable in front of their customers.

  • Digital-friendly:

The major strength of Chipotle is that they are highly innovative in the digital system. They introduced an app in which you can order your table and food before going to restaurants. This thing will save customers from waiting and long wait lines.

 

SWOT Analysis of Chipotle || Chipotle SWOT Analysis

Weaknesses of Chipotle:

  • Reliance on Multiple Suppliers

 

  • For ingredients like chicken, beef, and pork, Chipotle depends on its suppliers heavily. They face huge backlash with the occurrence of E.Coli. It is a major weakness of Chipotle.
  • High Sodium Substance:

As we know that high sodium can cause high blood pressure. Chipotle uses this substance in their food which is not good for consumers.

  • Limited Food Items:

Chipotle’s food menu is not very versatile because its menu is mainly consisting of tacos and burritos. It is another main weakness of Chipotle which can lead to a loss in profits and revenue systems.

 

SWOT Analysis of Chipotle || Chipotle SWOT Analysis

Opportunities for Chipotle (External Factors):

  • Extension into Global Markets:

Chipotle’s worldwide presence is very small, so they need to focus on different regions to open their stores in order to get maximum reach and profit. Their global presence is consisting of 37 stores outside the US. But with the expansion, they can expand their business.

  • Online Orders:

Approximately 11 percent of the revenue they earn from their online orders in 2018. In this sector, they can enhance or boost their business by introducing mobile, catering, and home delivery services.

  • Advance due to Stiff Competition:

It is necessary for Chipotle to upgrade its ambiance and conditions such as quality, cost, taste, and service in order to compete with its competitors. This thing has enabled them to work with efficiency and respect.

  • Training of Employees:

As the restaurant industry is growing day by day, in order to compete with competitors Chipotle should invest in the training of employees and workers. They can increase their worker’s salaries in order to get maximum efficiency and salary.

  • Drive-through Option:

Chipotle is also planning to introduce a drive-through option in its stores. This thing is necessary for the improvement in profits and revenues. This thing will save the time of customers and reduce the nuisance of waiting.

 

SWOT Analysis of Chipotle || Chipotle SWOT Analysis

Threats of Chipotle:

  • Loss of Consumer Trust:

In 2015, Chipotle faced huge criticism due to the outbreak of E.Coli. This serious threat can damage the image of Chipotle and can cause a loss in profit and revenue. This kind of scandal and controversy can be the biggest threat to Chipotle.

  • Lawsuits:

The wrong claim of low-calorie count from Chipotle can affect the company’s name and can also cause some legal proceedings against Chipotle.

  • Difficulty in Retaining Workers:

As the demand for dining is increasing among people, it is really difficult to manage a huge workforce and hiring new employees. This thing is also a big threat to Chipotle.

  • Supply Chain Issues:

Due to the severe regulations and strategies about ingredients such as chicken, beef, and pork, Chipotle is facing stiff problems from the suppliers.

  • Rising Competition:

In the presence of luxury restaurants and stores, Chipotle may face huge competition that can directly affect Chipotle’s market share and business. It is really crucial to tackle these problems with effective marketing and strategies.

 

TAGS: Chipotle Mexican Grill, Chipotle, Mexican Grill, SWOT ANALYSIS, CASE STUDY, RESTAURANT INDUSTRY, SWOT Analysis of Chipotle, Chipotle SWOT Analysis

 

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