Chipotle Mexican Grill’s

Apply: Case Study Analysis
Assignment Content
Read “Case 12: Chipotle Mexican Grill’s Strategy in 2018: Will the New CEO Be Able to Rebuild Customer Trust and Revive Sales Growth?” in your Connect textbook.

Write a 350- to 700-word response that addresses the following questions:

o What factors contributed to the loss of confidence in the Chipotle brand?
o Do the actions taken to-date present a strategy that would improve consumer trust? Why or why not?
o Consider Chipotle’s competitors. How does Chipotle’s internal environment compare to the internal environment of one of its competitors? Based on this analysis, what is the probability that the strategic moves implemented by Chipotle would lead to a sustainable competitive advantage? Explain.
o What additional recommendations would you make for Chipotle to gain consumer trust and reclaim a leadership role in the fast-food industry? Provide justification for your response.
o Based on the information presented in this case study, what kind of business strategy would you suggest to help Chipotle achieve a competitive advantage?

Submit your assignment.

ANSWER

Chipotle Mexican Grill’s

Loss of Confidence in the Chipotle Brand

Continued food poisoning reports and outbreaks associated with Chipotle restaurant led to negative publicity, which affected the customer and brand confidence. Customers increasingly questioned credibility and chain ethics. For instance, in 2015, Chipotle Mexican Grill underwent a salmonella outbreak that affected 64 people at the restaurant. The outbreak was associated with contaminated food that the customers had eaten at the restaurant (Thompson, 2019). In the same year, 18 employees and 80 customers were reported to have gastrointestinal signs of vomiting, nausea as well as diarrhoea that the medical establishments linked to norovirus, which is an infectious bug spread by unhygienic and contaminated food. Additionally, 55 people got ill due to food contamination after consuming food at 11 Chipotle places in Portland

Current Actions

Chipotle undertook internal actions that focused on food safety and food preparation procedures. For instance, they improved on the testing of fresh products, dairy items and raw meat before replenishing. In addition, they built on extra safety audits and procedures in all the restaurants to guarantee better food safety ideals. Chipotle also worked with the state, federal and local government to guarantee strong food safety values in place (Thompson, 2019). Chipotle also focused on training employees and advertising campaigns that indicated the restaurant’s commitment to preparing and serving quality ingredients. All these strategies aim at improving consumer trust after continuous foodborne illness outbreak and food safety lapses that have affected the restaurant. Enhancing the guest experience and continuing to perfect the food safety issues through considerable changes in operations and long-term planning can increasingly win consumer trust.

Chipotle’s Competitors

Chipotle faces competition from fast food casual restaurants such as Qdabo Mexican Eats, Moe’s Southwest Grills and Taco Bell. The internal environment of Qdabo Mexican Eats has food safety and quality assurance programs that aim at maintaining high standards for the food preparation procedures and food products. The internal environment at Chipotle focuses on maintaining a commitment to their experiences and strengths in food preparation through the organically grown fresh produce that has led to a sustainable competitive advantage (Walker and Merkley, 2017). The profitability and sales of Chipotle have been affected by the foodborne illness incidents. However, their focus on bringing healthy and fresh ingredients has enabled the restaurant to gain a competitive advantage and trust consumers.

Recommendations

Chipotle should focus on differentiation in food production through product innovation and the use of fresh ingredients. Fresh foods taste better, are healthier and are more alluring. Considerably, restaurants that focus on fresher ingredients gain rewards in maintaining quality and consumer trust. When a restaurant makes a truthful and genuine connection with consumers, the brand builds loyalty and forms a basis of the consumer-brand relationship. Therefore, chipotle should focus on fresh ingredients and product innovation in menu creation to reclaim its leadership role and gain consumer trust.

Business Strategy

Differentiation strategy would be essential for Chipotle commitment to offering high quality and freshly made food with natural ingredients. Differentiation revolves around product, experience and price (Islami, Mustafa and Latkovikj, 2020). For instance, Chipotle can differentiate its food items by improving their taste and freshness using healthier ingredients. To effectively win consumers, the restaurant needs to differentiation strategy that is focused on high quality-focused products.

References

Islami, X., Mustafa, N., & Latkovikj, M. T. (2020). Linking Porter’s generic strategies to firm performance. Future Business Journal, 6(1), 1-15.

Thompson, A. A. (2019). Chipotle Mexican Grill’s Strategy in 2018: Will the New CEO Be Able to Rebuild Customer Trust and Revive Sales Growth?.

Walker, R., & Merkley, G. (2017). Chipotle Mexican Grill: Food with integrity?. Kellogg School of Management.