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Executive Summary

Chipotle is preparing to launch a new wave of awareness to the community with their burrito product in a

mature market. Chipotle product offers 65,000 different combinations of fresh ingredients at a value-

packed price. The restaurant is known for their large burritos, customization, and the use of organic

ingredients. Chipotle’s growth is a direct result of quality, consistency of its service, and the perceived

differentiated value it has in the mind of consumers. Chipotle stands apart from its competitors because it

does its business differently in terms of its food, restaurants and advertising. Chipotle is one of the first

chains to establish a fast-casual dining market and is leading in the fresh-Mex market. Chipotle’s burrito

targets specific segments in the middle class market, by using higher quality ingredients in growing

suburban and urban areas. While most fast food chains rely on advertisements that promote their menu,

with limited-time discounts, new items, and value menu; Chipotle focuses on its quality ingredients, which

generates new interest and culture to how we perceive fast-food through a number of promotional events

and word of mouth.

The primary marketing objective is to spend 15% of profit into traditional and non-traditional

advertisement in order to saturate its market to its full potential; therefore owning a bigger share of the fast

food market, fast-casual dining market, and its fresh-Mex market.

Current Marketing Situation

Chipotle was founded in 1993 and went public in 2006. In a matter of five years Chipotle has been an

exploding chain. Chipotle is also experimenting with their new restaurant called South East Asia Soup

House, which serves Asian food in a fast-serve market. Chipotle is currently looking to expanding in

Europe and opened its first restaurant, in the UK, and opened a new store this year in France. Chipotle

target market segments in urban and suburban areas with strong residential and daytime population. Most

of the restaurants feature minimalistic interior design appealing to the young adult segment, and yet still

submitting to a casual dine-in restaurant. Chipotle created a new market known as Fresh-Mix dining

segment and continues to lead against rivals such as Qdoba and Baja Fresh. Chipotle is currently in its

growth, with solid financial backing, little to no debt with high revenues. Chipotle plans to expand its chain

in United States and other countries such as the United Kingdom, France, and perhaps Germany.

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Chipotle owns a small segment of the fast food market $2.27 Billion out of a $120 Billion Market (2011)

with McDonald in the lead. Other being fast food restaurants such as KFC, Sonic, Burger King, and etc.

Chipotle is currently growing in its segment of fast-casual market and in the fast food market. Chipotle has

little or no competition in the fast-casual market and will continue to be number 1 in its market segment.

Chipotle targets ages 18-34 and middle class who most likely have a BA or higher degree. Middle class and

upper middle class, is the largest share of the income market that makes up of 30-35% of their target

market.

Market Description

Chipotle target adults ages 18-24, well educated, and middle class. According to the U.S. Census

information available in April 2007, Chipotle’s market consisted of 13.3 million households with a 10

billion cap out of a 120 billion fast-food market. The data revealed that 79% of the households were non-

Hispanic whites and 33% of them had college degrees or graduate degree. There are also family consumers

which 68% of them were married with 35% in a two person household to be a couple and 43% in a three to

four person household married with children. Chipotle look for grubbers and health nuts who love to eat

large amounts or have a healthy meal. Chipotle target people who are environmentally conscious that

follows 'Food with integrity' mission, active lifestyle, socially focused, tech savvy, image conscious, and

financially unfocused customers. In a tough economy, Chipotle offers more financially cautious buyers

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greater value with a 1.25lb burrito. Chipotle’s burrito is aimed to match taste for non-Hispanic white. The

millennium generation, that had experienced an economic recession, has adopted a new lifestyle and

spending. They are buying less, and are looking for greater value in their purchases. In today’s economy,

financially cautious buyers are looking for greater value with a right combination of product quality and

good service at a fair price. Chipotle helps to create a healthy trend by serving high quality at affordable

prices. This trend has led to new markets to those consumers that are looking for fast food with a healthy

outlook. Chipotle has created a culture that affects society’s behavior towards healthy foods and organic

ingredients. Chipotle has concern for their natural ingredients and developed strategies and practices to

support environmental sustainability for their natural raised meat and organic ingredients. Chipotle’s

mission statement responds to its consumer demand for more quality at affordable prices.

Product Review

Chipotle’s components of a burrito are made in advanced and then the burrito is assembled by order, a

crucial element to differentiating itself from the rest of the fast food restaurants. The burrito also has free

range of ingredients pork, chicken and beef, from humanely raised animals that are not fed with hormones

or antibiotics. Chipotle’s burrito has their ingredients sautéed with special sauces that helps the burrito to

have its own unique taste distinguishable from its competitors to independent burrito shops. Chipotle’s

burritos are different, especially with their braised pork, which has a rich deep flavor. Their beans are well-

seasoned pinto or black, and mild to hot salsa gives a combined taste of freshness with their green-chili heat

and fresh cilantro. Other combinations are available with their seasoned white rice or brown rice that has

been cooked with butter, garlic, and fresh cilantro. Their burritos can contain over 1,000 calories which is

equivalent to two meals’ worth of food. Chipotle burrito is at convenient locations that allow customers to

buy with minimum comparison and buying efforts. Chipotle’s burrito stands firm as one of the healthiest

fast food served in America. Chipotle burrito has consistency and quality to buyers who can choose up to

65,000 different combinations for their burrito. Chipotle’s burrito is uniquely packaged in an aluminum

wrapper that has become iconic image to the Chipotle’s 1 pound burrito.

Competitive Review

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Qdoba. Qdoba was first opened and founded in 1995 in Colorado by Anthony Miller and partner Robert

Hauser. With their immediate success with their first year revenues exceeding $1.5 million, with cost of

$180,000 to open a 1,300 square feet restaurant; fresh, made-to-order Mexican food, Qdoba, was acquired

by Jack in the Box Inc. in January 2003. Qdoba currently sits as the #2 quick-casual Mexican chain behind

the market leader Chipotle Mexican Grill, with about 600 locations in 42 states. The eateries offer a

selection of burritos, along with tacos, salads, nachos, and breakfast items. More than 150 of the restaurants

are company-owned, and the rest are franchised. Qdoba is owned by the hamburger chain operated by Jack

in the Box. Qdoba chooses to compete against Chipotle with its signature burritos that are customizable and

cost roughly around $6-8.

Taco Bell. American chain restaurant Taco Bell is a fast-food service HQ based in Irvine, California. Taco

Bell is a subsidiary brand owned by Yum! Brands, Inc. Taco Bell serves a variety of Tex-Mex foods,

ranging from tacos, burritos, quesadillas, nachos, and other specialty items such as their value menu items.

Taco Bell serves more than 2 billion customers each year with over 6,446 restaurants bringing in revenue

of $1.9 billion dollars (2009). Yum! Brands Inc. operates Taco Bell, KFC, Pizza Hut, and WingStreet

restaurants all over worldwide. Yum! Brands Inc. is located in more than 110 countries, with its global

sales totaled more than $11 billion (2010). Taco Bell Express locations, that only serve items under $1,

operate primarily inside convenience stores, truck stops, shopping malls, and airports. Taco Bell competes

against Chipotle with their value menu burritos that cost around $1. Starting July, Taco Bell will serve

gourmet burritos that serve high quality ingredients to compete with Chipotle’s burrito. Cost estimates

starting at $6.

Panera Bread Co. The company is a leader in the quick-casual restaurant business with about 1,550

bakery-cafes in 40 states and Canada. Its locations, which operated under Panera Bread, Saint Louis Bread

Co. with its partnership with Paradise Bakery & Café, offer made-to-order sandwiches using variety of

artisan breads, Asiago cheese bread, focaccia, and its classic sourdough bread. The chain’s menu offers a

healthy menu that also features soups, salads, and gourmet coffees. Panera also sells its bread, bagels, and

pastries to go. Panera offers a consistent quality of food and services, with higher-quality ingredients. It

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competes with other national fast-casual chains such as California Pizza Kitchen, Chipotle Mexican Grill,

and Einstein Bros. Bagels, as well as #1 coffee house chain Starbucks. Panera relies on a mix of corporate-

run locations and franchising to expand and operate its restaurant chain. With Panera’s franchising efforts,

allow the company to expand into new markets without the expense of construction and operation. Local

franchisees pay the company royalties and other fees in order to use the Panera brand and other intellectual

property. The company supplies its franchise with fresh dough and other ingredients through a network of

more than 20 production and distribution facilities. Panera Bread Company competes against Chipotle with

higher quality ingredients that make up of sandwich. Panera Bread sandwiches are customizable from

chicken, turkey, tuna melt, and may not be even on the menu. Sandwich cost roughly about $7 and above.

Panda Restaurant Group Inc. Panda Restaurant Group is leader in the quick-service restaurant business

operating more than 1,300 Panda Express locations in more than 40 states, Puerto Rico, and Mexico. The

Asian-themed food serves primarily in high-traffic locations, malls, airports, and sporting arenas. The

company is privately owned by the family of Andrew Cherng, who opened its first Panda Inn in 1973.

Panda Restaurant has succeeded in creating a nationwide chain of Asian food outlets, without its

franchising effort. Panda Group is operated with strict training and food quality standards, clean and bright

interiors, and well-lit serving buffets. Panda Express competes against major fast-food chains such as Taco

Bell, KFC, and McDonald’s. The brand also fits within the fast-casual category competing against giants

like Chipotle Mexican Grill and Panera Bread. Panda Express uses customizable Asian plate with 2 sides

and a main dish fried rice or chow mein. 2 sides and one main dish cost starting around $8 a little pricier

than Chipotle’s burrito.

Baja Fresh. Also known as Fresh Enterprises operates and franchises 230 Baja Fresh Mexican Grill as a

fast-casual restaurant mostly located in California and in 25 states as well as Dubai and Singapore. The

chain’s menu offer made-to-order burritos and tacos, as well as quesadillas, nachos, and salads. Baja Fresh

was founded in 1990, and is well known for their fresh ingredients without fillers, freezers, and

microwaves. In addition to Baja Fresh, Fresh Enterprises also oversee La Salsa Fresh Mexican Grill Chain

and Canyons Burger Company, by an investment group led by David Kim. Baja Fresh was bought for $31

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million dollars from Wendy’s International (2006) which was originally bought for $275 million in 2002 by

Wendy’s. Baja Fresh is currently falling behind to leaders such as Chipotle Mexican Grill and Qdoba in the

fresh-Mex dining segment. Fresh Enterprises focuses on expanding its chain primarily through franchising.

A new strategy was added with the Baja Fresh Express, located in high-traffic locations such as airports,

shopping areas, and college campuses. With more recent report, in April 2012, David Kim has stepped

down from his CEO position and is replaced by Chuck Rink. Baja Fresh competes against Chipotle with

their burritos that cost $5.95 without taxes. Baja Fresh burritos have choice of meat, beans, rice, cilantro,

diced onions, cheese, guacamole, and more.

McDonald. McDonald’s is the world’s #1 fast-food company by sales, with more than 33,500 restaurants

serving burgers and fries in 119 countries. The popular chain is well-known for its Big Macs, Quarter

Pounders, and Chicken McNuggets. Most of its chain is free-standing units offering dine-in and drive-

through service. McDonald’s is also located in many eateries, such as airports, retail areas, and other high-

traffic locations. About 80% of the restaurants are run by franchisees or affiliates. McDonald’s has

dominated the fast-food dining industry largely through its franchising efforts, consistent food quality, and

successful marketing campaigns. McDonald main suppliers are Golden State Foods, Martin-Brower, and

J.R. Simplot, accounting for nearly their entire business. The company focuses its advertising efforts

primarily at families with children, touting its kid-friendly Family Meals and budget-minded Value Menu.

McDonald continuously develops new menu items in order to meet consumers’ satisfaction. McDonalds

looking to steal business from Starbucks and Jamba Juice, created items such as espresso coffee and fruit

smoothies. In the recent recession McDonald’s has come out strong with their Value Menu which targeted

families looking for less expensive alternatives. McDonald plans to expand oversees 2,000 restaurants in

China by 2013 with the emphasis of also growing in Europe and Asian markets. McDonald’s revenue is

$24 billion in 2010 with approximately 400,000 employees. McDonald’s holds 85% of Chipotle’s stock

and is a major contributor to Chipotle’s expansion and distribution.

Channels and Logistics Review

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Chipotle’s burrito will be distributed through restaurants mostly located in suburban and urban areas. While

Chipotle does not offer a delivery service, there is an online channel that allows customers to order food

and have it ready for pickup. Chipotle also have an iPhone application that allows customers to customize

their food at a nearby restaurant of their choice. Chipotle serves about 350 pounds of pork per week in

Charlottesville alone and more than 5 million pounds annually at its 700 restaurants (2005). Chipotle has

long pioneered to bring in sustainable and organic food in masses and continues to do so even with higher

costs. Chipotle continues to supply its naturally grown ingredients through many small suppliers who at the

beginning were 75 small farms and now there are more than 500. Chipotle are strict with their demands

only choosing to have naturally grown ingredients for their product. Although Chipotle cannot source all of

his ingredients to be naturally grown, because of its rapid expansion, CEO Ells continues to look for

solutions.

SWOT Analysis

Strength

● Innovative product. Chipotle Burrito has 65,000 different combinations with high quality

ingredients. Chipotle is fast, easy, and fun to make. Chipotle has customer experience from the

start of the entrance to creating your food.

● Pricing. Chipotle serves high quality ingredients at an affordable price of $6. Not too cheap to

make it seem like its missing something, and not too expensive like Cheesecake Factory. Chipotle

burrito serves value for its size; therefore making the burrito ‘worth every penny’.

● Strong reputation and financial position. Chipotle has outgrown many expectations and grown

26% in the first quarter from last year with reported revenues of $640 million. Chipotle is on fire,

growing by 12.7% with added locations count to 1,262 restaurants and over 30,000 employees.

● Strong influence. Chipotle is changing the way people think and how we eat fast food. With long-

standing commitment to serve food from more sustainable sources, Chipotle continues to be at the

forefront of responsible farming trend getting the best ingredients at an affordable price.

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● Chipotle has little or no debt with high revenue. This means that Chipotle is low risk and highly

credible. Chipotle could take out large loans to expand at a faster rate, and pay it off with their

increasing revenue.

Weakness

● Limited menu. With 65,000 different combinations, Chipotle menu technically consists of only

three options (burrito, tacos, and burrito bowl).

● Higher price point than competitors. Chipotle serves higher quality which means higher price.

Chipotle, compared to its fast food competitors, serve their product at a higher price for its organic

ingredients.

● Lack of brand awareness. Chipotle lacks brand awareness, does not use traditional ways of

promotion and advertisement. Chipotle just recently had their first ad run on Grammy Awards

(02/10/12).

Opportunities

● Lots of Geographic growth. Presently, the company operates all of its restaurants within the

United States with potential growth up to 3,000 locations. Chipotle just recently entered the UK

and France. Chipotle is also looking to expand in Germany. There is significant room for growth

before the company hits saturation.

● Product branding. Many products that are not affiliated with Chipotle are using the name Chipotle

for their sauces such as Subway who also has their own Chipotle sauce.

● Asset leverage. Chipotle has high profit and have little to no debt. Chipotle is a low risk

investment, with strong grounds. If Chipotle decided to borrow money, they could acquire large

sums for expansion.

Threats

● Competition. Chipotle has lots of room and market space for competition. Chipotle is fairly new to

the whole foods market; a fast food chain serving higher quality food is inevitable in the near

future.

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● Economic Slowdowns. Due to higher price points on the Burrito product, Chipotle could find

itself following the economy. If United States goes into recession most likely Chipotle will find

itself falling behind in sales.

● Rise on prices due to expansion. Chipotle is a growing chain, and it may be hard to find organic

suppliers for all its restaurants. Chipotle may have to face either higher prices, lower quality, or

fewer restaurants.

Objectives and Issues

First-year Objectives – During the first year, Chipotle will stress the usage of their promotional mix team.

The team that consists of advertising, public relations, personal selling, sales promotion, and direct-

marketing tools will persuasively communicate customer value and build customer relationships.

Advertisement will work with the promotional team to create short term excitements and sales during the

first quarter of the year to increase Chipotle’s awareness. Public relation will aggressively build the

Chipotle brand and use attractive messages to spread and maintain brand awareness. With massive use of

the social media, Chipotle will push to use non-traditional ways of advertisement, such as giving away

prize money to anyone who can create a Chipotle commercial through the use of YouTube, Vimeo and

other social sites. Getting people involved is Chipotle’s main focus for the first year in order to get

awareness spread through the word of mouth and validity from every day customers. First year objective is

to capture the audience of Social network users who mostly spends most of their days sitting in front of a

computer.

Second-year Objectives- During the second year, Chipotle will time their launch of awareness to the

public in both traditional and non-traditional ways. The second year, advertising would take its toll on its

marketing budget. The promotional mix team will have to carefully strategize their resources. Chipotle will

coordinate with its expansion by spreading awareness through the use of traditional ways of advertisement.

Because it is expensive to use traditional advertisement such as TV commercials, Chipotle will have to

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accumulate and use budgeted resources from 15% profits. Chipotle will choose carefully with the

upcoming events such as sports arenas, and shows to catch not only a certain demographic viewers, but also

introduce Chipotle’s burrito to a larger segment that favors healthy ingredients at a fast food restaurant.

Every two years it is important to know important events such as Olympics. This would be the perfect

opportunity to advertise Chipotle to one of the most watched events in a global arena. The second year

objective is to capture the audience of non-social network users, people who are watching TV, listening to

the radio, and around billboards most of their days.

Third-year Objectives – During the third year, Chipotle will establish long term awareness and

refinement. The promotional marketing team will use its strongest points to reiterate where Chipotle is

positioned as a fast food company. There will be some bumps on the road that needs to be smoothed out

with the help of Public Relations; any bad word spread will be managed by the PR team. There needs to be

room for error and in the third-year, Chipotle will be on surveillance mode. Chipotle will continue to

advertise, promote, personal sell, public relation, and direct selling just as rigorously as the first two years

of preparation and action. Chipotle will continue to ride on the action plans used in the first two years with

the additional team to look over its progress. If Chipotle is able to repeat and consistently promote their

product on special Holidays, World Cup events, Olympics, Sport events, and sponsorship to promote their

product, Chipotle will be a leading icon in the fast-food industry. In this point in time, with Chipotle’s

strong growth, awareness is a key element for its long-term success.

Issues

Chipotle advertisement can go wrong if the mission statement is not closely positioned with their product.

Chipotle will slowly get used to using different advertisement strategies and may mitigate some of its

operating margins with the new department. Sustainable income is a must for the promotional mix

department after it is created. In relation to the new awareness launch, one major issue would be the ability

to establish its brand name to a meaningful position. Promotional mix is a mind game, half of the money

spent can be wasted trying to get the brand name out to an over communicated society. Investments will be

heavily made in marketing in order to create a distinctive brand image projecting innovation, value, and

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quality. Measuring awareness is also an issue, it is not easy to measure how much consumer knows, and the

team must respond and adjust their marketing efforts.

Marketing Strategy

Product Strategy

The Chipotle burrito will be at consumer’s full customization and have customer experience from the

entrance of the restaurant to making your food. Chipotle will always be served with the freshest ingredients

for the grubbers and healthy eaters who are looking to find satisfaction for their dollar. Chipotle will always

promote their product by giving away their burrito for free on certain holidays, and on the first day a

restaurant opens in the area. If you don’t like how you made your burrito, Chipotle is more than willing to

offer a new combination free of charge in order to enhance your experience.

Pricing Strategy

Chipotle burrito charges at a premium price and will be ready to increase their prices by small increments

when needed. Unlike other fast food restaurants who heat up their food in a microwave oven, Chipotle is a

quick food restaurant that actually cooks, grills and warms its food for its customers. Chipotle is expected

to increase prices from marginal-cost pricing due to expansion. Long-term price strategy is to sustain or

lower their prices with new suppliers and distribution system. Chipotle will follow its “Food for Integrity”

mission statement and continue to serve their burrito with high quality ingredients at slightly higher cost

than most regular fast-food meals.

Distribution Strategy

Chipotle uses a selective supplier that doesn’t use antibiotics in the meat and organic farmers. Chipotle is

highly selective with no intermediaries and vertical marketing systems involving the suppliers and Chipotle

to work closely together. Suppliers for Chipotle are very limited, but more channels will be created in the

foreseeable future. Chipotle is backed with a juggernaut distribution system owned by McDonald’s who is

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a big contributor to Chipotle’s success in expansion and distribution. Chipotle will use a user friendly

website and mobile applications to create more channels of distribution or at least a faster solution than

waiting in line.

Promotional Strategy

Chipotle will use the new promotional mix department to create new ways of getting awareness out to the

people. Chipotle will advertise and sponsor organic farms to racecars and have their logo on places where

millions of viewers will see. Chipotle will mostly have their customers involved by giving away prize

money to winners who can create a Chipotle's commercial. Chipotle's main strategy will always be handing

out free burritos and being engaged with its customers. The use of non-traditional advertisement will

always be Chipotle’s focus to getting people’s attention.

Positioning

Chipotle burrito will be positioned as one of the most value packed fresh ingredient burrito, making a long-

term commitment to serve better and higher quality food for the higher price. Food with integrity, the

commitment to finding the best ingredients raised with the respect for the animals, the environment, and the

farmers.

Marketing Communications Strategy

Chipotle will stress its promotional mix team to reinforce and remind its strong points to the consumers.

Chipotle positions itself as a fast-food restaurant serving higher quality ingredients at affordable prices.

Finding new touch points with their consumers by looking at both in-store and also more online and mobile

channels. As word of mouth is slowly in its decline, Chipotle is finding new strategies to use word of

mouth more effectively. Such as, “Did you know Chipotle is doing this?” or in those lines to create new

energy of conversations about Chipotle. Most of their communications will happen with their social media

accounts in order to reach out and have a dialogue with their customers. Chipotle’s main buzz was through

the generated word-of mouth marketing, but with Chipotle’s growing chain, there needs to be more

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efficient messages to keep up with its growth. The word-of-mouth is a slow but reliable solution, the

Marketing communication strategy is to find alternatives to spreading Chipotle’s good news to the

community.

Marketing Research

First thing Chipotle did is ethnography study in which to figure out who Chipotle’s customers was and why

they were coming. Annual research to forecast trends and fads that could be added to dining experience

patterns. Online surveys and active studies lets Chipotle reach out to customers more on a personal level in

order to find out what works for the company. Marketing Research can help with their menu and ingredient

selection; such as finding what combinations work the best and what could be added. Marketing Research

helps Chipotle identify not only its customers but what customers want in their satisfaction. Marketing

Research will be conducted in several ways many times a year to get constant feedback and dialogue with

the Chipotle’s customers. In order to better Chipotle, Marketing Research will help adjust or make any

changes that could be needed as time is always changing.

Marketing Organization

Chipotle’s chief marketing officer, Mark Crumpacker, holds all responsibility for the company’s marketing

activities. From December 2002 to December 2008 he was the Creative Director for Sequence, LLC, a

strategic design and marketing consultant at a firm he co-founded in 2002. Prior to that Mark Crumpacker

served as a creative director and in other leadership roles for a variety of design and media companies.

Chipotle has worked with advertisement agencies such as San Francisco-based Butler, Shine, Stern &

Partners.

Action Programs

First Quarter - Chipotle will create a promotional mix department with highly experienced team in order

to create marketing plans for both short-term and long-term strategies. Brain-storm and planning will

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happen in the first quarter of every year. The team will develop a local marketing strategy that supports and

extends the national marketing platform. Articulate strategy in a written annual plan that includes budget

and a program calendar.

Second Quarter - Chipotle will launch a new wave of awareness to the people by using carefully planned

advertisement and marketing strategy. The promotional team will create not only short term increase in

sales with buy one get one free but also look into long-term strategies by creating a sustainable prices for

their product. The marketing team that includes social media, public relations, direct selling, advertising,

research, mobile, design and production team members on the development and implementation of an

annual plan. Advertising will be implemented on billboards, radio, social media, and traditional

advertisement such as TV commercials.

Third Quarter - Chipotle will continue to promote their company, and evaluate their progress. This stage

would be 'stepping back and looking at the big picture'. Third quarter is where they are going with their

strategy and if they're right on track. Third quarter is also about the company's image and where they are

now with their mission statement. Maintain and update annual plans as changes are made throughout the

year. The market team will be managing relevant budgets, tracking and processing invoices as well as

evaluating the effectiveness of the marketing programs. Also the team will be looking closely at the project

costs, working with other departments including Finance, Operations, IT, and Training.

Fourth Quarter - Chipotle is in its last quarter and needs to drive up sales for its annual sales report.

Chipotle will push its hardest to peak during these last months in order to attract investors. The last quarter

is by far one of the most important quarters of the year, as most financial reports are done by the end of the

year. Finishing strong will bring strong starts for the next year, and more investors. Fourth quarter is all

about being aggressive and working with any added adjustment and changes from third quarter. Also in the

last quarter it brings close to important holidays such as Christmas and New Year’s which should also be

preparing for next year’s promotional advertisements and annual plans.

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Budget

In the first year Chipotle is projected at $799,060 million with an average sale price of $6 dollar per unit

and variable cost of $3.10 dollar per unit. Chipotle is profitable after its sales exceed 65,744 units. In the

third year, with its continued growth, Chipotle will profit after it exceeds 133,110 unit sales. Break-even

analysis is a great way to calculate its cost.

Year 1: 190,656/6-3.10=65,744 units sales to break even.

Year 3: 386,017/6-3.10=133,110 unit sales to break even.

Controls

Tight controls will be measured and monitored closely by our accountant Ernst & Young LLP. With our

consumer outreach and two-way communication we will be able to keep in touch with our customers and

their satisfaction. Given the fast growth of the company, Chipotle will continue to maintain their prices

with 'A class' restaurants and high quality ingredients to serve healthier in a fast food pace. The marketing

team will also keep a close eye on its progress and use its monthly sales as signs to how they should

strategize. Forecasting towards trends, culture, and using strong points on the company’s brand personality

will help prepare for the future. Currently Chipotle is looking for high ideal candidates who have skills in

local marketing as well as a national marketing platform and tactics. New marketing strategist will help

develop Chipotle’s growth globally and focus both on short and long-term priorities and goals. “Chipotle:

Food with Integrity.”

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