2. Chipotle - Introduction
• Chipotle Mexican Grill, Inc. is a chain of restaurants in the
United States and Canada specializing in burritos and
tacos. It was founded by Steve Ells in 1993 and based in
Denver, Colorado.
• The restaurant is known for its large burritos, assembly line
production, and use of natural ingredients. The company
has released a mission statement called Food with Integrity,
which highlights its efforts in using organic ingredients, and
serves more naturally raised meat than any other
restaurant.
• Chipotle is one of the first chains of fast casual dining
establishments.

3. Food and Beverage market in India
Food Service market includes - Fine Dining Restaurants,
QSRs or Fast Food Chains, Cafes and Coffee Joints.
Changing consumer lifestyles, increasing urbanization and
higher frequency of eating out has fueled growth in the
market
Market
The market is dominated by the unorganized food service
providers.
Major players include a large base of foreign brands who
have a huge consumer base in the Tier 1and Tier 2 cities.
Organized players are eyeing the major retail chains as the
next emerging target for setting up outlets
Competition

4. Food and Beverage market in India
• Growing disposable income
• Favorable demographics
• Changing lifestyles and preferences
• Increasing proportion of take away food
• Increasing number of working women
Drivers
• Cumbersome licensing
• Food price fluctuations
• High cost of real estate
• Lack of skilled manpower
Challenges
• Foreign players foraying into Indian market
• Brand expansion into smaller cities
• Indian brands exploring the foreign market
• Emergence of Theme-based cafes and
Trends restaurants

5. Chipotle – SWOT Analysis
STRENGTH WEAKNESS
• Innovation • Availability of brand specific
• Strong management team sourced foods
• Strong brand equity • Limited menu
• Strong financial position • Higher price point than
• Reputation management competitors
• Community Involvement
OPPORTUNITY THREAT
• Asset leverage • Competition
• Emerging markets and • Economic slowdown
expansion abroad • External changes (government,
politics, taxes, etc)
• 40% Saturated • Lower cost competitors or
imports
• Price wars
• Many other similar themed
chains in the market

6. Chipotle – PEST Analysis
POLITICAL Local government corruption leading to
P unfair treatment of foreign entities. Diversify to
different states. Enter with JV partner familiar with
Indian Politics.
ECONOMICAL INR/USD XR fluctuations lead to
E higher investment than anticipated. Limit currency
risk exposure to initial investment
SOCIAL Adapt menu to cultural taste and
S preferences. General social and cultural acceptance
of type of cuisine. Leverage relationship with
experienced JV partner
TECHNOLOGICAL Methods to preserve the raw
T product.

7. Recommendations:- Chipotle
Moving to India
Strategy Profitability Risks
 “Few Things Well”  $10M Initial FDI  JV for Social and Legal
 Use Joint Venture Risk Mitigation
 40% Contribution Margin
 Two Locations  Controlled Political and
 8-Year Breakeven Point
Technological Risks
 New Delhi  12.5% Return on
 Volatile Rupee: 39 to 51
 Bangalore Investment
Decision: Go (with the Right Partner)

8. Recommendations:- Chipotle
Moving to India
Consistent Key
Strengths
• Financial Stability
• Available Capital
• Restaurant Efficiency
Key Weakness
ID Key Resource Improvement Strategy
1 Marketable Cuisine Adapt menu to address demographic
3 Brand Improve brand awareness in India with similar US promotions
8 Improve via strong JV partner for expansion into right markets and
Business Acumen
conduct business operations

9. By
Ekta Bawa
Naina Deo
Rupsikha Borah
Subhodeep Ray Chaudhury