The Case Study’s Summary
This case study can provide valuable lessons for companies looking to expand their business or grow their customer base. In this case study, the researcher will examine how Chipotle Mexican Grill achieved rapid growth by offering good customer service and resolving conflicts with its customers to ensure continued loyalty and financial success for the Company. Chipotle was founded in 1993 by Steve Ells, who wanted to create a restaurant that offered healthy food at reasonable prices (Gilkerson et al., 2016). The Company’s first restaurant was located in Denver, Colorado. It quickly became popular among college students and other young people who wanted to eat well without spending too much money. According to Gilkerson et al. (2016), in 2007, Chipotle expanded nationwide with the help of a loan from Goldman Sachs.
Gilkerson et al. (2016) outline that, in 2015, Chipotle had more than 2,200 restaurants in the U.S., Canada, the United Kingdom, France, and Spain. The Company has been increasing because it provides excellent customer service and has a resilient approach to conflict resolution. In 2016, Chipotle was hit with bad publicity (Gilkerson et al., 2016). Chipotle faced an outbreak of E. coli infections that sickened dozens of customers at several locations across the country. The U.S. government’s disease-prevention organization (CDC) later determined that the outbreak’s source was not linked to Chipotle’s food preparation practices or ingredients (Gilkerson et al., 2016). However, this incident did cause some customers to lose trust in the Company’s ability to provide safe products.
In response to this incident, Chipotle began implementing new standards for food safety and quality control procedures nationwide. These standards included first identifying infected restaurants and closing them immediately while contacting customers who may have been infected or exposed to illness when visiting those locations. Second, offering free burritos after news broke out about the outbreak. Third, conducting tests on all raw materials used in their kitchens. Fourth, implementing new procedures for cooking meat and fifth, conducting extensive training sessions for employees to be better prepared should another outbreak occur again soon after the last one happened (Walker & Merkley, 2017). Further, the Company improved cleaning protocols, proper hand washing procedures, and more effective pest control strategies throughout each restaurant location.
The Case Study’s Origin
The source of my case study is an article by: Walker, R., & Merkley, G. (2017). Chipotle Mexican Grill: Food with Integrity? Kellogg School of Management Cases, 1-8.
Theoretical (Conceptual) Interpretation of the Case Study
The theory (concept) one can use for this case study is “Customer service and a resilient approach to conflict.” The theory states that using a resilient approach is the best way to deal with conflict. Resilience means being able to bounce back from experience and continue with life (Kuntz, 2021). The best way to do this is by being open, honest, and kind. The concept of customer service and a resilient approach to conflict is essential for business success, and companies must provide customers with a quality experience. This concept helps a company stay competitive in today’s market.
This theory can explain how Chipotle Mexican Grill, a fast-food restaurant, has become successful. Chipotle Mexican Grill has maintained its customer base by providing excellent customer service and a resilient approach to conflict. The Company has further created a safe environment for its customers to enjoy their food. The concept behind this theory is that customers will continue to patronize the business if the Company has a good reputation for providing excellent service and dealing with conflicts constructively (Van Breda, 2018). Chipotle’s success can be attributed to its ability to provide excellent customer service and deal with conflicts constructively. For example, suppose there is an issue with one of the employees at Chipotle Mexican Grill. In such cases, the employees are trained to deal with the situation without becoming argumentative towards the person. They will listen carefully and address their concerns, so everyone feels cared for, regardless of their position.
References
Walker, R., & Merkley, G. (2017). Chipotle Mexican Grill: Food with Integrity? Kellogg School of Management Cases, 1-8.
Kuntz J. C. (2021). Resilience in Times of Global Pandemic: Steering Recovery and Thriving Trajectories. Applied psychology = Psychologie applique, 70(1), 188–215.
Gilkerson, N., Swenson, R., & Anderson, B. (2016). Farmed and dangerous? A case study of Chipotle’s branded entertainment series and polarized reactions to its satirical depiction of farming and agribusiness. Journal of Applied Communications.
Van Breda, A. D. (2018). A critical review of resilience theory and its relevance for social work. Social Work, 54(1), 1-18.