Chipotle Chinese Expansion Essay

928 words - 4 pages

{draw:frame} The purpose of this term project is to successful implant Chipotle Mexican Grill in the international market of China. Within the upcoming proposal I will propose how I believe our successful franchise can prosper along with furthering increasing profits. This proposal will address cultural and logistical concerns which I believe can hinder our success. The future final project will include solutions I believe will best alleviate these concerns. Our product will enter into the fast food market which is currently altering the way the Chinese culture dines. By glancing at the successful business model and success of staple American corporations such as McDonald’s and Yum ...view middle of the document...

Internationally Chipotle has very minimal exposure currently but with plans to expand. Currently we operate stores in Canada and have just announced at least on store opening in London by end of 2009. Our Denver based organization was once formally owned by McDonald’s corporation until 2006 when all ownership was sold off. One of the major hurdles we will face is one we are about to encounter in London. Opening a location abroad has more complications for Chipotle than it does for other dining brands, as they have a policy of working with local farmers and ranchers in order to source their food locally, humanely and sustainably.(McClellan Par.1) We currently operate over 500+ stores in North America and have a total of 18,800 employees with plans to continue our U.S. growth. One of the reasons are stores have been so profitable is our simplistic menu and higher ticket cost per customer. The average fast food customer will spend $5.00 where as at Chipotle we average $8.50+ per customer while having fewer employees per shift. This increases our profit and operating margins in 2 regards. Another primary reason is our inclusion of and serving of liquor on our menu which is another advantage compared to competition.(Seeking Alpha Chipotle IPO) We will also discuss the labor law and the wages we should be paying the employee’s as this was a major hindrance and public relations issue with McDonald’s in the past. McDonald’s was accused of underpaying part time employees and have since increased their wages to above minimum wage. Educating and being fully aware of the potential and unavoidable pitfalls and how best to prepare for them. A healthy relationship with the All-China Federation of Trade Unions is an integral aspect of integrating our product with the Chinese culture accordingly. One factor regarding our entry into...

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