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SWOT Analysis of Chipotle
BusinessManagementMarketingSWOT & PESTLE 

SWOT Analysis of Chipotle || Chipotle SWOT Analysis

by Shamsul

 

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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SWOT Analysis of Coca Cola | Coca Cola SWOT Analysis

 

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SWOT Analysis of Burger King
BusinessManagementMarketingSWOT & PESTLE 

Burger King SWOT Analysis || SWOT Analysis of Burger King

by Shamsul

 

Burger King SWOT Analysis || SWOT Analysis of Burger King

Burger King is a well-known name in the fast-food business and it is fully operating since 1954. It started its working from Florida and now it is working in almost every country. With Burger King SWOT analysis, you will understand the strengths, weaknesses, opportunities, and threats. So, let’s get started.

 

Name: Burger King (Original Insta-Burger King)

Parent Company: Restaurant Brands International

Founded: 1954, Jacksonville, Florida, United States

Founders: James McLamore & David Edgerton

CEO:  Daniel Schwartz (Jun 7, 2013–)

Head office:  Miami, Florida, United States

Type: Subsidiary

Category: Fast Food Restaurant

Area Served: World Wide Franchise

Industry:  Ready Food

Number of locations: 18,838 (Burger King operated 52), franchised, 18,786

Annual Revenue (2019):  US$ 1.78 billion

Net income | Profit (2019):  US$ 0.643 billion

Burger King Subsidiaries: List

 Burger King Competitors: MacDonald’s | KFC | Hardee’s | Luby’s

 

 

Burger King SWOT Analysis || SWOT Analysis of Burger King

Strengths of Burger King:

  • Worldwide Existence:

Currently, Burger King is working in almost a hundred countries with 18838 functional stores. In addition, it is the world’s 6th biggest fast-food chain. With this strong worldwide presence, it is irrefutably the main strength of Burger King.

  • Effectual Policies:

The reason behind the success of Burger King is its effective policies and strategies. They always follow the latest trends of the market. They recently selected a young CEO to enhance its working. This effective policy turned out to be most valuable for Burger King.

  • Powerful Chain Model:

It is franchised with above 15000 outlets being possessed by franchisees. If you want to own a Burger King franchise, you just need to pay a franchise fee which is 45000 dollars. With an initial investment of 317100 dollars, you can own a Burger King’s franchise. This reasonable deal shows the powerful chain model of Burger King.

  • Ample Variety:

Burger King’s major strength is its huge variety of products. They offer valuable domestic and global menu items to their customers. From different types of fries to buns, plant-based whoppers, burgers, chicken items, desserts, and beverages, they provide quality products in a wide range.

  • Latest Offerings:

They always find and reinvent innovative and top quality products for their consumers. They invented plant-based sandwiches which attracted many users. With this innovation, Burger King has earned a major profit in 2019.

  • Inventive Marketing:

Everything is possible with effective marketing. They recently introduced a hideous commercial reflecting a preservative-free burger weakening above 34 days. This interesting makes sure that the user can easily find the trademark for being natural.

  • Healthy Products:

Burger King is not fully functional to provide healthy products, but in comparison with competitors, they provide healthy products. It is another major strength of Burger King and that’s why people love it.

 

Burger King SWOT Analysis || SWOT Analysis of Burger King

Weaknesses of Burger King:

  • Overreliance on United States Market:

Burger King is heavily dependent on the US market and almost 44 % of its restaurants are working in the United States. With 9.2 billion dollars of total revenue, they generated this revenue from the US market. This could be dangerous for Burger King in case of any mishap.

  • Confusing Commercials:

With a growing number of health-conscious people, any misleading commercials or ads about products oxidize the customer’s trust. But they are working on this project and recently introduced plant-based whoppers. They also working on vegan suitable products and prepared most of their products with egg-based mayonnaise.

  • Over Franchising:

Burger King has managed its franchising model very impressively so far, but quick franchising can damage and weakens its franchising model. The recent conflict between Subway and franchise owners shows that rapid franchising can be risky.

  • Not Have Enough Stability:

The rapid changes in leadership and ownership can affect the working and operations of the company. Burger King has changed its ownership 6 times in recent years which is quite phenomenal and dangerous for the company.

  • Unconstructive Advertising and Scandals:

With negative publicity, the company has faced a lot of criticism from the users. Some controversies such as feeding horsemeat and vegan products, these kinds of scandals break the customer’s trust.

  • Low Worth:

Most of the users expect the real worth of their money in the form of good quality products. Sorry to say, Burger King gives the cheapest to expensive products. That’s why they don’t have a potential consumer base and its users prefer other companies and products which is not good for Burger King.

 

Burger King SWOT Analysis || SWOT Analysis of Burger King

Opportunities of Burger King:

  • Build up Market Existence:

Burger King is working to expand its outlets from 26000 to 40000. With this kind of strong presence, most of the customers can easily access their restaurants and outlets. This strategy is very effective and useful for Burger King and also helps them to compete with their competitors.

  • Fortify Plant-based Alternatives:

After introducing ‘Impossible Whopper’’ sandwiches, their profits increased by 30 %. This is totally healthy product and very popular among customers. As we know that the people are moving to health-conscious products, that’s why Burger King needs to increase its plant-based options.

  • Modify Portfolio:

Burger King has the potential to diversify its reach. They also need to focus on different sectors such as the grocery business. In this way, they can sell their plant-based whoppers on its own. They should diversify their restaurant business also.

  • Pay More Attention to Rising Markets:

In order to increase its revenue and market share, Burger King should focus on emerging markets such as Asia, Africa, Latin America, and the Middle East. These markets have potential and can help to increase your growth and profit.

 

Burger King SWOT Analysis || SWOT Analysis of Burger King

Threats of Burger King:

  • Worldwide Recession:

The world is facing a huge recession but food is a necessary item. Most of Burger King’s franchises confirmed bankruptcy in this economic hardship.

  • Hard Competition:

Burger King is not only a single fast-food company in the world. The other heavyweights such as KFC, Dominos, McDonald’s, and Subway, Burger King are facing stiff competition. These companies can threaten the profit, market share, and burger war of Burger King.

  • Increasing Health-Consciousness:

As the health-conscious society is increasing very rapidly, but most of Burger King’s products contain fat and animal products. That’s why it is considered an unhealthy brand in the eyes of some customers. Apart from this, the competitors of Burger King offer good quality and health-conscious products to their customers.

  • Strict Rulings:

Due to different policies of governments, some things are unfavorable for Burger King such as taxes and tariffs. The demand for healthy products to improve lifestyle is also a big problem for Burger King.

  • Rising Cost of Farm Products:

The increasing cost of farm products is also a big threat for Burger King. It can disturb its operations and sustainability.

  • Universal Epidemic:

As the dining is completely cut off due to the current pandemic, the company is unable to pay rents and struggling to manage its expenses.

 

TAGS: BURGER KING, SWOT ANALYSIS, CASE STUDY, RESTAURANT INDUSTRY,

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