Problem: In early 2014, it was obvious that founder, co-CEO, and Chairman Steve Ells's vision for Chipotle Mexican Grill "to change the way people think about and eat fast food" had resulted in a home run strategy that enabled the company to capitalize on the growing demand for healthier, more wholesome fast foods. Ells believes that the Chipotle model of a limited menu/fresh ingredients/classic cooking methods/customer customization of the dishes ordered could work well with a variety of different cuisines, and the company was well along in market testing two additional restaurant concepts, one for Asian food and one for pizza.
In this case study, using Chipotle's latest SEC Form 10K, evaluate Chipotle's execution strategies and prospects for long-term growth and profitability with particular attention to the following issues:
- The strengths and weaknesses of their core competencies.
- The effectiveness of the primary and secondary components of their value chain.
- The chief components of their strategy.
- The advantages and disadvantages they have compared to their chief competitors, such as Moe's Southwest Grill, Taco Bell, Qdoba Mexican Grill, and others.
- Any recommendations you would make to CMG's top executives to strengthen the company's growth and profitability.