chipotle mexican grill

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Ketsara Pratumtong 56310700304 Jaikarn Piromrasmee 56310700307 Chalit Saengprasit 56310700310 Thunchanok Issaraphanit 56310700317 Wipada Kaewsomnugk 56310700333 Sarunpak Tantimasakul 56310700334 Suparat Itthiritthanon 56310700339

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Ketsara Pratumtong 56310700304

Jaikarn Piromrasmee 56310700307

Chalit Saengprasit 56310700310

Thunchanok Issaraphanit 56310700317

Wipada Kaewsomnugk 56310700333

Sarunpak Tantimasakul 56310700334

Suparat Itthiritthanon 56310700339

Company background

TacosBurritos

Salads

Burrito Bowls

Chips & Guac Kid's Menu

Company background “To change the way people think about and eat fast food”

M E X I C A N G R I L L

Performance: 5 Years strategic & financial

1,085,782

1,331,968 1,518,417

1,835,922

2,269,548

70,563 78,202

126,845

178,981

214,945

-

50,000

100,000

150,000

200,000

250,000

-

500,000

1,000,000

1,500,000

2,000,000

2,500,000

2007 2008 2009 2010 2011

Revenue Net Income

2007 2008 2009 2010 2011

Restaurants open at year-end 704 837 956 1,084 1,230

M E X I C A N G R I L L

Problem & Challenge

Competition from new and

existing restaurants in the

industry

Problem

Challenge

Risk of opening new restaurants

Volatility of supply costs

Higher prices

To use natural ingredients to emphasize its

commitment to maintaining its status as a

“fast-casual” restaurant that makes healthy

food at affordable price.

Insufficient sustainable suppliers

to cover demand

Supplier Relationships

M E X I C A N G R I L L

Industry Summary

Restaurant Industry (2012)

Market Size: $632 billion

Capacity: 970,000 units (in U.S.)

Fast Casual Restaurant (2012)

Market Size: $22 billion

Capacity: 13,643 units (in 2011)

Share: 3-4% of overall restaurant

Growth: Double digit growth

(continue to grow in US during the down economy of 2008-2009)

M E X I C A N G R I L L

Industry Analysis – Five force analysis

Athletic Apparel

Industry

Bargaining Power of Suppliers

Rivalry within an Industry

Threat of New

Entrants

Threat of Substitutes

Bargaining Power of Buyers

Unique supply chains. Materials purchased from suppliers can vary on pricing. Some of the materials for the restaurant are easily

purchased at the local hardware store or office supply store.

Low

Price that customers have to pay is stable.

The number of consumers of Mexican food is

increasing.

Low

No specialized expertise is required.

Sunk costs are low.

Startup capital is modest compared to

other industries.

High

People can make their own food at home.

Grocery stores have ready-to-eat food or

easy-to-make meals.

Go to a fast food restaurant.

Go to a different restaurant.

People don’t usually have a strong loyalty to

only one restaurant.

High

Compete on the basis of location,

food quality, style and

presentation, food range and

variety, ambience, hospitality and

service in all other regards.

Moderate

M E X I C A N G R I L L

Competitor analysis & comparison

Chipotle Taco Bell Moe's Southwest Grill Qdoba Mexican Grill

Founded 1993 1995 2000 1995

Parent company Chipotle Yum! Brands Focus Jack in the Box, Inc.

Owned Restaurants (2011)1,230 in 41 states

(Columbia, Canada, UK)

1,201 in US

3 in International

420 in 26 states

(Columbia)

245 in 42 states

(Columbia)

Franchised Restaurant No 4,029 in US

237 in international No 338 in 42 states (Columbia)

Sales in

2009/2010/2011 ($)1.52 -> 1.84 -> 2.27 million 6.7 -> 6.8 -> 6.9 billion N/A 0.923 -> 0.961 million

MenuBurritos, Burito Bowl, Taco, Salad,

Chips and Guac

Tacos, Burritos, Gordita, Salads,

Nachos, Chalupas, Breakfast menu

Burritos, Quesadillas, Fajitas,

Tacos, Nachos, Rice bowls, and

Salads

Burritos, Tacos, Taco salads,

Tortilla soup, Mexican gumbo,

Chips and Dips

Operated Time 11:00 a.m. - 10.00 p.m. 8:00 a.m. - 11:00 p.m. 11:00 a.m. - 10:00 p.m. 10:30 a.m. - 10:00 p.m.

Break-through productThe ShopHouse Southeast Asia

KitchenDoritos Locos Taco

Kids menu and vegetarian,

gluten-free and low-calorie options

Savory Queso and variety of catering options

Strategy in 2012Offering a higher quality of food

with a higher perceived value

Aggressive promotion of the

Doritos Locos Taco

Launched mobile ordering apps

for Android and iPhone

Adopting sustainable and eco-friendly business practice

Slogan / Brand campaign "Food With Integrity" The Cantina Bell menu in 2012Emphasized friendly hospitable

service"Artisalnal Mexican Kitchen"

M E X I C A N G R I L L

•Changing political issues on the fast

food industry

•Government regulation on label and

packaging.

•Corporate Tax.

•Consumer demand: sales in food

industry are primarily the result of

discretionary purchases

(income/spending).

•Cost of goods sold: food costs, labour

costs and occupancy.

•Societal preferences, beliefs,

aspiration and concern affect

demand.

• Trend has developed beyond healthier.

Macro Environment Analysis

Economic SocialPolitical

• Local and federal labour laws affect

employee wages and benefits.

• Environmental protection laws.

•Consumer protection laws.

• Food safety laws.

•Sustainability supply chain.

•More “Green” Industry.

• Environmentally friendly material.

•Recycling is a prominent global issue

and in response.

•Development in automated food

production.

•Point of sale system, online and

mobile payment method.

•Social media are provided to

increase sales and improve customer

service.

Environment LegalTechnology

M E X I C A N G R I L L

Internal Analysis: Value Chain Analysis

Firm

InfrastructureFinancing, legal support, general management, accounting, quality control

Human

Recourses

Recruiting, training, development, evaluate

(Above Standard Staff and High Benefit)

Technology Social Media , Product R&D

Procurement Sourcing raw material from Supplier (Approved suppliers) and site selection from real

estate brokers.(surrounding, demographic & business information)

- Approved

supplier list of

raw materials

- Inspection (Food

safety standard)

- Cooking (Slow

food fast)

- Throughput and

maintain quality

- Distribution

Center

- Advertising

(Grammy

Award), Media

(VDO, Music)

- Promotions &

Campaigns

(Farm Team)

Order Processing

(Online, Fax,

IPhone App)

Inbound Logistics Operations Outbound

Logistics

Marketing &

Sales

Service

Margin

M E X I C A N G R I L L

Capabilities Analysis

Superfluous Strengths

Zone of Irrelevance

Key Strengths

Key Weakness

Site Selection

Procurement

Rela

tive

Stre

ngth

Labor

DistributionBrand

Advertising

Variety of Menu

Customer ServiceFinance

Technology

Strategic Importance HighLow

HighOperation

AtmospheresCost

M E X I C A N G R I L L

Current Business Strategy Analysis

Serving a focused menu

Setting distinctive interior and aesthetically pleasing atmosphere

Using high-quality raw ingredients and classic cooking methods

Having friendly people take care of customer

Increasing awareness and respect for environment

M E X I C A N G R I L L

New Objectives (Strategic & Financial)

Vision:

“To change the way people think about and eat fast food”

Mission:

“Serving high quality food while still charging reasonable

prices”

Strategic:

1. To increase consumer awareness with regards to

the importance and benefits consuming of naturally-

raised produce.

2. To vigorously seek out expansion into the European

markets.

3. To continue to grow and foster new relationships

with food suppliers.

4. To continue incurring only minimal amounts of

expenses relating to marketing and other

advertising expenses.

Revenue Forecasts:

1. Unit growth

2. Same store sales growth

4,743,906 5,704,076

6,858,584

8,246,766

9,915,916

11,922,903

654,753 864,998

1,142,754

1,509,699

1,994,472

2,634,909

-

500,000

1,000,000

1,500,000

2,000,000

2,500,000

3,000,000

-

2,000,000

4,000,000

6,000,000

8,000,000

10,000,000

12,000,000

14,000,000

2015 2016 2017 2018 2019 2020Revenue Net Income

M E X I C A N G R I L L

Business Strategy

Business Strategy: Differentiation Strategy Chipotle must be certain to continue pursuing the current

strategies.

Expanding “Food With Integrity” campaign to serve healthier food.

Other evidence suggests the competitive position:

- Differentiated product positioning

- Operational efficiencies

- People culture based on performance

- Growth that far outpaces the fast-casual sector and the

restaurant industry in general

- Growing sector with large target audience

Risks and Uncertainties: - Changes in consumer preferences or decreased

consumer spending.

- The availability of qualified employees or increased

labor costs.

- Increased in the cost of food ingredients and other

key supplies.

- Health concerns about food or dining out generally

M E X I C A N G R I L L

Value Proposition, Distinguished Activities

Brand Equity Quality

Menu

Culture

Distinguished Activities

Use the “Food With Integrity” philosophy to

diversify into other food segments such as

bakery-café.

Raise the bar for what the market expects a

sustainable restaurant to offer such as the

use of recycled and green materials in store,

use recycling water for restroom flushing.

Defining long-term contracts with existing

suppliers of ethically grown and raised

product and source new ethical suppliers.

Home delivery in an area to influence

mainstream perceptions about convenience of

service.