Going Global: Chipotle

Devon Wescott
Kathleen O'Hearn
Asiana Gilchrist
Martin Yany
Company Overview
Founded by Steve Ells in 1993 in Denver, Colorado
-opened at an former Dolly Madison ice cream
parlor

Over 1,000 locations in 43 states
-2 locations in Toronto, Canada
-6 locations in London, UK

Chipotle the Brand
Mission Statement: "Food with Integrity"
-"fresh is not enough, anymore"
Chipotle Cultivate Foundation
- supporting family foods
- increasing animal welfare and pasturing
-increasing nutrition and reducing obesity in
children
"Back to the Start"
-sustainability

What Chipotle Has to Offer
"Fast- casual"
-line- up, self serving
High quality raw ingredients
-naturally raised pork, beef & chicken
-organically grown produce
Distinctive interior design
-working to make each store as sustainable as
possible
Limited menu
-burritos, burrito bowls, tacos and salad
Chipotle Expands
Shophouse
-Asian Restaurant
Very Similar to Chipotle
-same mission statement
-uses high quality ingredients
-concise menu
-interactive service format
Currently has 3 locations
-2 in Washington D.C.
-1 in Santa Monica, California

Purpose:
To decide on the best overseas market for
Chipotle to consider in order to create and
establish a successful global presence.

-Achieve purpose through market analysis
and country comparisons
Module 1: SWOT Analysis


Module 2: Determining Global Market Opportunity
Australia vs. New Zealand

Module 2: Determining Global Market Opportunity
Australia vs. New Zealand

New Zealand
-one of world's fastest growing populations
-72% in urban areas
-growing more modern
-developing a strong
market economy

Australia
-population nearing 23 million
-over 17 years of economic growth
-geographically isolated
-lack of real domestic market
Country Comparison
-Australia is more promising market to enter
-stronger population
-healthier
-rising incomes
Module 3: In- Depth Market Analysis
-Australia
Income: Recent increase leads to
increased discretionary income

Cultural Preferences: Australians have a
tendency to prefer higher quality food as
opposed to food that may be cheaper
- increasing preference for chicken and
red meat
Module 3: In-Depth Market Analysis
Population: largest population segments
represent majority of Chipotle's target
market
- age 15-25= 13.5%
- age 25-54= 42.2%


Foreign Direct Investment Policies: ranked as
having fewest restrictions on product market,
and 3rd fastest place in the world to start a
new business

Module 3: In-Depth Market Analysis
Industry Growth: food service industry
expected to rapidly grow in next few years
-Australians developing a habit of eating out
for lunch and dinner as opposed to dining in
- 3.8% growth
in fast food
restaurants in
last year alone

Module 3: In-Depth Market Analysis
Total Market Potential: 2,116,745,232
-12, 599,674 potential customers purchasing
product 24 times annually (twice a week) at
an average of $7.00 per purchase

Competition:
-Montezuma's and
Taco Bill's
- Taco Bell=Taco No
Module 4: Market Entry Strategy
Entry Strategy
Franchise is the best option for Chipotle
- Use cultural differences to adjust their
marketing plan
Ex: Dinnertime in America vs. Australia
- Corporate may not be able to pay attention
to small details, yet owners of certain
locations can
Module 4: Product/Market Strategy
Large agricultural market
- do not need to outsource
- cut down prices
Eating out is a growing habit in
Australia
- Balance between healthy eating and eating
out
- 'Grab and go' restaurant vs. what is in
current market
Module 4: Pricing Strategy
Pricing of McDonald's should relate to pricing
of Chipotle
- Reflect that 27.9% increase in pricing
Average Chipotle Pricing
- $5.25-$7.25 for a burrito in America
- In Australia: 27.9% increase...
- $6.71-$9.27
Module 4: Promotional Strategy
Quality over quantity in advertising methods
- ex: Back to the Start video
In Australia, 'content media'
- Facebook, Twitter, LinkedIn, and YouTube
- Focus in on important aspects in Australia
- ex: Charities, the environment etc...
Module 4: Distribution Plan
75% of population live in big
cities in Australia
- Keep in mind the 16-30 age group
- Places such as Perth and Sydney
High tourism in these cities as well
- Americans visiting in Australia may look for
a restaurant that is familiar
Conclusion
Chipotle has the opportunity to successfully
enter the market in Australia
- Must adjust and keep in mind the
cultural differences in Australia
Sources
http://theinspirationroom.com/daily/2012/chipotle-back-to-the-start/
http://www.cultivatefoundation.org/about
http://www2.qsrmagazine.com/articles/features/138/global_growth-3.phtml
http://www.fool.com/investing/general/2012/11/29/chipotles-shophouse-moves-
into-expansion-mode.aspx
http://www.ausfoodnews.com.au/2012/07/23/australian-consumers-change-
eating-out-habits-in-2011.html
http://www.indexmundi.com/australia/demographics_profile.html
http://en.wikipedia.org/wiki/Median_household_income
http://en.wikipedia.org/wiki/Economy_of_New_Zealand