Chipotle is an example of an effective management system that has led the company through the hard times due to foodborne outbreaks several years ago. The organization has developed the proper plan for managing the investments and changing its philosophy and approach toward customers. Thus, Chipotle has earned recognition among specialists and analytics and served as the illustration of the efficient business model for other companies in the restaurant field. This paper aims to observe some of Chipotle’s managerial technics and primarily focus on the company’s culture and philosophy.
Chipotle’s key to a successful exit from the crisis is being aware of the new tendencies on the market and implementing them into the business strategy. The management has realized the customers, particularly millennials, prefer healthy and organic ingredients in their meals, especially fast food. Therefore, they started to order beef from Australia because there was not enough supply of grass-fed, antibiotic-free beef in America, and they made sure to inform the customers about it (Peterson, 2014). Thus, Chipotle became one of the most outstanding representatives of the new trend in the restaurant industry.
The term “casual restaurant” applies to the places where people can have meals made from more premium ingredients and with slightly higher prices than regular fast food but still affordable and quick (Little, 2015). To increase sales, the company has started catering which increased the revenue by over sixteen million dollars, and the numbers keep growing each year. Thus, another fascinating fact is that Chipotle does not use any special tools to attract customers and raise sales (Peterson, 2014). The restaurants can add a new meal to the menu or a new feature, and without any extra promotion, people will come and buy it themselves. Additionally, the quality of employee performance has improved, and workers at the restaurant began to prepare orders significantly faster than before.
Another excellent example of the fast reaction to the changes in the market and the world is the situation with coronavirus. During the epidemic’s peak, Chipotle has managed to keep the business working and even implemented new features that would attract more potential clients. The company put the customers’ safety first and invested in digital accessibility by working on websites, mobile apps, and digital kitchens (Yahoo Finance, 2020). However, people still were too scared to get to public places, and in response, the management decided to have a drive-through in the restaurants. The uniqueness of that innovation is that people could order food ahead, select a time when they want to get their order, specify when their food should be ready, and pay in advance (Yahoo Finance, 2020). Thus, customers could drive to the window and take their order in a matter of a few seconds. Those innovation has led to the growth of the restaurant web and stimulated the openings of new places all over the country.
Summarizing all the actions and measures that Chipotle has taken, it is clear that its philosophy and culture are built around the client’s needs and satisfaction. The management strives to make the visit and use of the company’s services pleasurable, safe, and comfortable for the customers. Therefore, the company quickly adapts to the new circumstances and effectively reacts to them, strengthening its position. It seems that a customer-oriented business like Chipotle is more likely to handle unpredictable situations and survive crises while gaining profit and attracting new clients.
References
Little, K. (2015). The next Chipotle? One of these 5 could be the next big thing. MSN. Web.
Peterson, K. (2014). 5 reasons Chipotle is killing it. CBS News. Web.
Yahoo Finance. (2020). Chipotle CEO: Digital experience during coronavirus lockdowns a ‘key driver’ of success. Web.