Ketsara Pratumtong 56310700304

Jaikarn Piromrasmee 56310700307

Chalit Saengprasit 56310700310

Thunchanok Issaraphanit 56310700317

Wipada Kaewsomnugk 56310700333

SarunpakTantimasakul 56310700334

Suparat Itthiritthanon 56310700339

Companybackground

TacosBurritos

Salads

Burrito Bowls

Chips & Guac

Kid's Menu

Companybackground “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 9561,084

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

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

Fast Casual Restaurant (2012)Market Size: $22 billionCapacity: 13,643 units (in 2011)Share: 3-4% of overall restaurantGrowth: 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.

LowPrice 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

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 BellMoe's

Southwest Grill

Qdoba Mexican Grill

Founded 1993 1995 2000 1995

Parent company Chipotle Yum! Brands FocusJack in the Box,

Inc.Owned

Restaurants (2011)

1,230 in 41 states (Columbia, Canada,

UK)

1,201 in US3 in

International

420 in 26 states

(Columbia)

245 in 42 states

(Columbia)

Franchised Restaurant

No 4,029 in US237 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/A0.923 -> 0.961

million

MenuBurritos, BuritoBowl, 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 Time11:00 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.

Kids menu and

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 Infrastructure

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

Human Recourse

s

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

-

- Cooking (Slow food fast)

-Throughput and

-Distribution Center

-Advertising (Grammy Award), Media

Order Processing

(Online, Fax,

IPhone App)

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

ProcurementRelative

Strength

Labor

DistributionBrand

Advertising

Variety of Menu

Customer ServiceFinance

Technology

Strategic Importance

High

Low

HighOperation

AtmospheresCost

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

Strategic Group Analysis

Narrow

Low Qualit

High

Wide

Variety of Menu Offering

s

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

Revenue Forecasts: 1. Unit growth2. 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 20172018 2019 2020Revenue

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

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