Chipotle Efa & Ifa Analysis

Problem Statement: Chipotle’s position being a leader in Mexican Restaurant Quick service industry is being threatened by less customer visit frequency; company should try new multi-cuisine food to fit into existing successful Model. Hypothesis: To increase customer visit frequency & gain new food lovers & customers, Chipotle should expand its stores or open new line of multi-cuisine restaurant to serve its valued customers by maintaining its quality & standards. Analysis Plan / Solution Approach:

To achieve this , Chipotle should try out opening a new restaurant in different places in the country and consider inputs and values from customers who visit the stores and introduce different menus depending on taste & choise of customers from the External & Internal factors on next page. Data Used / Key Assumptions: The data used comes from the current strategy maps, mission statement & history of Chipotle’s restaurants. Additional data comes from my experience with Chipotle Mexican Grill Inc and its website.

Conclusion: Chipotle was a successful business model in quick service restaurant industry but they had focused on Mexican food variety and have not targeted all customers by implementing multi cuisines in the stores Recommendation to Management: I would recommend management to open stores by taking surveys from the public or current customers who visit the stores, and consider all valuable inputs from them and try to open few stores instead of opening one multi-cuisine store in most of state’s capital cities.

As Chipotle had already proven their success in quick service food industry by serving quality food , customers are ready to pay & eat good multi-cuisine food from them. As no other quick service food industry is trying this approach it should try to act fast and penetrate into market before potential entrants copies this model. External Factors |Weight |Rating |Weighted Score |Weighted Comments | |Opportunities |  |  |  |  | | Proven Industry Leading experience |0. 2 | 4 |0.   | Share value as of today | | Trend to Quick Service Food Industry | 0. 15 | 4 | 0. 6 | Current market sales in U. S | | Demographics favor Multi-Cuisine would be successful with quality & organic | 0. 05 |5 |0. 25 | Sales volume for last quarter & this year & Quality is key to success. |food | | | | | | Unique operating model |0. 1 |4 | 0. 4 | Share Value as of today in current market trends. | | Potential clients who are leaning towards quick service than fast foods |0. 5 |3 |0. 15 | Proven from statistics and food awareness. | |Threats |  |  |  |  | | Strong U. S Competition from other Asian Restaurants | 0. 2 | 2 | 0. 4 | Competitors like panda express, P.

F changes | | Cannibalization of current Chipotle Restaurants |0. 15 |1 | 0. 15 | Not considered | | Brand name effect if new model fails |0. 1 |2 |0. 2 | Questionable | | Potential Entrants with same new restaurant model | 0. 5 | 2 | 0. 1 | By the time potential entrants come we can be leaders in multi-cuisine. | |TOTALS |1. 00 |  | 3. 05 |  | Decision: Should Chipotle Mexican Grill try Asian Cuisine restaurant into this Model? Internal Factor Analysis Summary (IFAS) | | | | |Internal Factors |Weight |Rating |Weighted Score |Weighted Comments | |Strengths |  |  |  |  | | Quality of Food that is served in restaurants | 0. | 5 | 1 | Quality key to success | | Experienced Top Management in Restaurant industry | 0. 05 | 4 | 0. 2 | Know restaurant business | | Proven Good Business Model | 0. 05 | 5 |0. 25 | Chipotle name in market | |

Employee relations & Benefits provided to hourly emps. |0. 025 | 3 | 0. 075 | Good | | Latest Information Technology tools used for performance evaluations of | 0. 025 | 4 | 0. | Best Technologies used | |employees & stores. | | | | | | Centralized controlling of all stores & restaurants by dividing stores under | 0. 3 | 4 | 0. 7 | Dedicated resources for regions & areas to check quality control | |regions & areas. | | | | | | Employee Vertical Integration | 0. 5 | 3 | 0. 15 | Position Management based Business model | | Global Presence slowly | 0. 05 | 1 | 0. 05 | Considering growing globally | |Weaknesses |  |  |  |  | | Global Positioning |0. 05 |3 | 0. 5 | Not considered right away as company is still young | | More weight of food served for less cost |0. 1 |2 | 0. 2 | Have to re-model this factor | |Single Customers re- visits per month |0. 1 |4 | 0. 4 | Have to improve this area. | |TOTALS |1. 00 |  | 3. 775 |  |

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