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.
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.
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.
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.
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.
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.
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.