Chipotle Industry Analysis Essay

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Global World Analysis: The global restaurant industry has been forecast to grow in coming years. Growth of the restaurant industry globally driven by increasing preference for eating out and demand for take away foods among the youngsters. Growth in number of franchise restaurants will also increased the revenues in the restaurant industry in upcoming years. In today’s busy lifestyles, where people have very little time to spend for preparing the food at home, changing preferences in India and China’s younger population (1/3 population of the world) to eat out at least every weekend with Family and Friends, high disposable income among younger consumer, and favorable economic indicators and political stability all over the world except middle…show more content…
A vegetarian cuisine food chain with attractive menu and food quality is provides another opportunities to grow the business. Another way for Chipotle to expand revenue would be to commercially sell its products. With such a loyal customer base, offering its guacamoles and salsas would only increase customer loyalty, as well as, strengthen brand image. Threats: Rising food costs throughout the United States is a major threat to Chipotle Mexican grill. This is especially relevant to Chipotle in its efforts to provide the freshest, organic products. With a price increase in agricultural products, Chipotle would face a decrease in margins. Seasonality also deems a threat to fast casual restaurants that provide fresh ingredients with short shelf lives. If environmental conditions cause shortages or absences of a product that a company promises to provide, a problem could arise, causing a loss of customer loyalty. Chipotle, demanding products from local farmers within 350 miles, is highly threatened by seasonal issues. As a chain establishment, each store provides little variability in its product offering, thus if there poses a seasonal issue near one store, changes will be forced to happen to deal with

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