Chipotle Seen Becoming Mcdonald's With Drive Throughs Essay

¶ … Chipotle Seen Becoming McDonald's With Drive Throughs (Patton, 2012) the future direction of best-selling Mexican fast food restaurant Chipotle is debated. The author is careful to interview both the company's founder Steve Ells, senior investor relations executives and from outside the company, Alex Spong and David Einhorn. Mr. Spong and Mr. Einhorn are investment analysts who track the market segments of the restaurant industry that Chipotle competes in. The premise of the article is hwo Chipotle management should best respond to the flat sales and gradually declining sales. It is very apparent from the article that the farther Chipotle moves away form their focus on the customer experience, the more they tend to suffer adverse financial consequences. This chain does best in terms of sales and profits when they are delivering an exceptionally strong and valuable customer experience...

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One of the most significant is the belief that Chipotle should stay focused on the mid-morning, lunch and dinner segments. Chipotle has yet to invest in a breakfast menu, a point the investment analysts mention as an area of significant potential growth (Patton, 2012). Breaking into a new menu segment carries with in an entirely new set of customer segment requirements and a unique marketing message for a new type of customer. This is a very risky strategy for Chipotle, which is firmly established as a strong, highly respected lunch and dinner alterative for many working families. As is apparent from the article, Chipotle is thinking of doing this as they are driven by competitors, not…

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References

Patton, L. (2012, October 24). Chipotle, growth slowing, looks at fast-food future. Bloomberg, Retrieved from http://www.bloomberg.com/news/2012-10-25/chipotle-seen-becoming-mcdonald-s-with-drive-throughs.html


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Chipotle Seen Becoming McDonald's With Drive Throughs founder and CEO Steve Ells is interviewed, in addition to the chain's director of investor relations, Alex Spong and several financial industry analysts. One of the most influential is David Einhorn, a hedge fund manager who said Chipotle was over-valued as a stock. The article shows the challenges that Chipotle confronts today with flat sales and profitability while competitors continue to grow.

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