Chipotle Mexican Grill

Chipotle Mexican Grill

Lisa Smith

Rasmussen College

Author Note

This research is being submitted on January 11, 2012, for Dr. Pogue's,

B136/GEB1011 Introduction to Business course.

Chipotle Mexican Grill

The price of comparable substitute goods would affect Chipotle's product due to the fact that Chipotle uses fresh ingredients. If they decided to use products that are not as fresh the demand for the product would diminish, thus affecting the supply. If the company decided to use processed meats and other products the consumer would probably go to another business such as Taco Bell to obtain the same product at a cheaper price. Chipotle marketing strategy is freshness. Also the number of suppliers would be affected on the supply side of the business if there are too many Mexican grill businesses opening up. In my area alone Chipolte is in competition with Taco Bell, Qdoba and many other mom and pop carry outs/fast food eateries.

One factor impacting the demand side of Chipotle's business would be a change in income levels. There is a high unemployment rate in my area (Baltimore, Maryland). Here, if people want something that is good and cheap they will go to a Taco Bell instead of a Chipotle because Taco Bell offers larger portions for about the same money. I feel that Chipotle's food is fresher and better tasting, some people are not willing to spend the dollar in this recession. This would impact the business' demand side. If there are fewer customers, then less supply is going to be ordered, making profits less.

Another factor impacted would be complementary goods. If Chipotle started selling various other items that did not go with the Mexican grill this could start to be a competitors market. Stick to what you are known for. I do not want to go to a Mexican grill that sells burgers or hot dogs.