Chipotle Presentation.pptx reak presenrartions

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1. Chipotle Mexican Grill: Overview Founded in United States, 1993 Chain of restaurants specialized in burritos and tacos. One of the first chains of fast casual dining establishments No. of locations – 2,250 (as of 2017) No. of Employees – 64,570 (as of 2017) HQ – Denver, Colorado Founder: Steve Ells

2. Vision Change the way people think about and eat fast food. Mission Food With Integrity

3. Company Objectives To show that there is many healthy benefits on eating Chipotle’s organic food. Build long-term brand awareness and manage company reputation To demonstrate company’s devotion to animal rights. Core Competency Their target customer’s being the people who not only like Mexican fast food but are also aware their health . They use naturally raised meat in a humane manner and fresh ingredients for cooking Provides value for the money to the customers.

4. Milestones 1993 Chipotle Mexican Grill was founded 1998 McDonald’s becomes a major investor 1999 The start of Food With Integrity 2006 Chipotle made its Initial Public Offering 2008 Going International – Toronto got its first Chipotle 2011 Chipotle Cultivate Foundation launches 2011 ShopHouse launches 2015 The food safety scandals 2017 Remodeling the original location

5. Serving Orders Quickly Biggest innovations : creating the ability to have a customer’s order ready quickly. Customers move along the serving line - They select which ingredient they want in their dish - By speaking directly to the employees Much experimentation and fine-tuning : - creating a restaurant layout and serving-line design High rate of customer throughput. At least 200 and up to 300 customers per hour. Orders placed by fax, online, or via an iPhone ordering app Chipotle’s new catering program

6. ‘’Food With Integrity’’ Vision of changing the way people think - since 2003 Organically grown local produce - organic beans - organic dairy products - meats from animals No GMOs(Genetically modified Organisms) Avoided use of chemical fertilizers and pesticides, Raised in accordance with animal welfare standards Never given feeds containing antibiotics and growth hormones to speed weight gain. Began working with experts in the areas of animal ethics. Followed U.S Department of Agriculture standards. Ongoing challenges in sourcing organic ingredients. Supply-demand imbalances.

7. Supply Chain Management Practices Top executives – maintaining high quality level. Developed long-term relationships with reputable food industry suppliers. Utilized the service of 23 independently owned and operated regional distribution centers . Constantly working to increase the number of approved suppliers. Monitored To better anticipate potential impacts on: -ingredient price -industry news -trade issues -weather -exchange rates -foreign demand -crises and other world events

8. Restaurant Management And Operations Based on the principal that ‘the front line is key’. Kitchen designs intentionally place most personnel upfront --speak to customers in a personal and hospitable manner. The open kitchen -Allows customers to see employees preparing and cooking ingredients. “one burrito at a time” - Give each customer individual attention, Creating a positive and interacting experience - build loyalty and enthusiasm for the brand - among the restaurant’s entire staff. ‘The front line is key’ ‘’one burrito at a time”

9. Restaurant Staffing And Management Has two shifts at its restaurants, -simplified scheduling Cross trained to work at a variety of stations -to provide people with a variety of skills to boost -labor efficiency during busy periods Motives: - Encouragement from an acquaintance who worked at CMG - Their own favorable impressions while going dining at a CMG Hands-on, shoulder –to- shoulder training. PROMOTION: - 85% of salaried managers and 96% of hourly managers -promoted from position as crew members.

10. Marketing Strategy Powerful marketing : word-of–mouth publicity considerable media coverage : -publications that had largely favorable articles describing its food, restaurant concept, and business - featured in a number of television programs First-ever national TV commercial during the broadcast of the Grammy awards. (2012) -A short film, Back to the start. ‘Cultivate festivals’. Cultivate in Chicago, San Francisco, Dallas, and Minneapolis, -Drawing total audiences exceeding 120000 Introduced its scarecrow marketing program - Iphone game – 600000 downloads - 500 million media impressions - would cost $5 million to purchase as advertisement Farmed and dangerous, comedy series - four 30 minute episodes - explored the world of industrial agriculture in America. -A short film, Back to the start. During Grammy award. ‘cultivate festivals’. Scarecrow i OS game Farmed and dangerous, comedy series

11. Restaurant Site Selection Highway sites, outlet centers, and locations in airports, in food courts and on military bases. Internal team of real estate managers : - evaluating potential locations for new restaurants Advice and recommendations were solicited from external real estate brokers Entailed studying the surrounding trade area - demographic and business information on competitors. Based on: - proprietary formulas -projected sales and targeted ROI for new locations. Also explored locating new restaurants in areas where it had little or no prior experience,

12. PESTLE Analysis Biscuits were assumed as sick-man's diet in earlier days introduced Tiger Banana, which had very high iron content introduced Nuti -Choice biscuits and Actimind flavoured milk to overcome cardiovascular diseases Clinical tests on Britannia products before they could reach the market Proper food safety programme by GMP, GHP, HACCP certification Change in climatic conditions Depends on suppliers and farmers for raw materials Shortage of milk Requirements for Logistics Exemption on Customs Duty on Sugar Raw Material Import Removal of Import Duty on Dairy Products GST on biscuits Political Technological Economic Social Environmental Legal use the most advanced technology available for the manufacture of biscuits Equipment's with international standards of safety, quality and design . New age packaging system

13. Porter’s Five Force Analysis Bargaining power of buyers is high Price has a huge impact on bargaining power Buyers have a lot of options to choose from the market Bargaining power of buyers Threats of substitutes is very high There are many substitutes present in the market B iscuit industry compete on different factors Threat of substitutes Moderate level of supply Suppliers compete with each other in terms of price and quality Very low threats of new entrants High capital investment High competition High cost of brand development Threat of new entrants Bargaining power of suppliers Strong competitive market Parle and ITC are the main competitors in biscuit industry Amul and Nestle are the main competitorsin dairy products. Competitive Rivalry

14. Competitor Analysis PARLE FOODS ITC FOODS LTD Established in 1939. 35% dominant share of the Indian biscuit market became India's first domestic   FMCG brand to cross the ₹ 5,000  cror e mark in retail sales in 2013 strong distribution network covered over 6 million retail stores in India.  Parle G, hide & seek, bourbon, 20-20, kreams Established in 24 august 1910 India's biggest   cigarette manufacturer, later diversified business in to Fast-Moving Consumer Goods revenue of 60493 crore RS ($9.3 billion) in 2017 30000 employees Sun feast, B natural, candy man, bingo   B iscuits industry is the largest food industry in India with a turn over of 8000 crores. India is ranked 3rd after US and China amongst the global biscuits producers . T here are around 150 medium to small biscuit factory in India today. The Biscuit industry employs almost 3.5 lakh people directly and 30 lakh people indirectly.

15. KPI Net Profit Shareholders Funds Dividends Market Capitalisation Sale of products

16. KPI Owners Nusli N Wadia (Chairman) Varun Berry (Managing Director) Ness N Wadia ( Director) A.K.Hirjee ( Promoter Non-Executive Director ) Jeh N Wadia ( Promoter Non-Executive Director) S S Kelkar ( Non-Executive Independent Director) Mrs.Ranjana Kumar ( Non-Executive Independent Director ) Mr. Ajay Shah ( Non-Executive Independent Director ) Board Of Directors Executive leadership Varun Berry (Managing Director) Manoj Balgi (GM Procurement) Anindya Dutta ( VP, International business Ali Harris (VP, marketing) Sudhir Nema (VP, R&D & Quality) Ritesh Rana( VP, Human Resource Vinay Singh ( VP, Supply chain) N.Venkataraman (CFO)

17. SWOT Matrix Internal External (W1,5 + O2) Making good relation with the new and existing organic ingredient suppliers (W1,4 + O1) Promote the awareness of healthy organic foods (W4 + O4)Take advantage of growing catering service market (W5 + T4) Varying supplier geographic areas would prevent a complete loss of supplies (W3 + T1) Follow cost reduction strategy to decrease costs (S1,2 + T3) Develop new menu offerings to attract more customers (S3 + T2,3) Create more innovative marketing ideas to capture the market (S1,2 + O1,2) Maintaining “Food With Integrity” mission to be the leader of the market (S2,3,4 + O3,4) Expand in new markets S-O Strategies W-O Strategies S-T Strategies W-T Strategies S1: High-quality ingredients and customized meals S2: Strong brand recognition and portfolio S3: Innovative marketing techniques S4: Strong supplier relationship with organic producers S5: Company maintains ownership over all restaurants Strength W1: Relatively High Priced W2: Limited menu items W3: Dependence on domestic business W4: Low share in catering service market W5: Dependence on the limited small number of farmers Weakness O1: Growing health trends among consumers O2: Growth of organic food ingredients O3: Large International market potential O4: Growing restaurant industry and catering market O5: Opportunity to add new offerings Opportunity T1: Increase in food safety regulations T2: Economic slowdown T3: Strong competition from the competitors T4: Seasonal and limited suppliers T5: Ease of entry into the market Threats

18. Chipotle: CSR Ethical business policies E nsure very healthy organic ingredients High-quality standards of Chipotle No GMO food menu Competitive wages and benefits for employees Chipotle Cultivate Foundation -Promotes food literacy and better nutrition Raised more than $20 million for community groups around the country in 2016 - Victims of the wildfire

19. Tawhidic Paradigm Islam promotes healthy and nutritious food. Prophet Muhammad (SAW) once said that, “the world is beautiful and verdant, and verily God, be He exalted, has made you His stewards in it, and He sees how you acquit yourselves.” Chipotle’s mission: “Food With Integrity” Chipotle Cultivate Foundation “Eat of the good things which We have provided for you.” (Quran 2:172) “O mankind, eat from whatever is on earth [that is] lawful and good and do not follow the footsteps of Satan. Indeed, he is to you a clear enemy.” (Quran 2:168 )

20. Recommendations Expand operations in foreign markets to exploit the global growth of the fast-casual dining industry. Increase investment in innovative and unique marketing . Add new product offerings in the menu, as well as breakfast for morning people . Product awareness through social media participation Focus on catering sector which has huge potential

21. THANK YOU!