• 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.

Chipotle - Introduction

Food and Beverage market in India

Market

Competition

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

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

Food and Beverage market in India

Drivers

Challenges

Trends

• Growing disposable income• Favorable demographics• Changing lifestyles and preferences• Increasing proportion of take away food• Increasing number of working women

• Cumbersome licensing• Food price fluctuations• High cost of real estate• Lack of skilled manpower

• Foreign players foraying into Indian market• Brand expansion into smaller cities• Indian brands exploring the foreign market• Emergence of Theme-based cafes and restaurants

Chipotle – SWOT AnalysisSTRENGTH• Innovation • Strong management team • Strong brand equity • Strong financial position • Reputation management • Community Involvement

WEAKNESS• Availability of brand specific sourced foods

• Limited menu • Higher price point than competitors

OPPORTUNITY • Asset leverage • Emerging markets and expansion abroad

• 40% Saturated

THREAT• Competition

• Economic slowdown

• External changes (government, politics, taxes, etc)

• Lower cost competitors or imports

• Price wars

• Many other similar themed chains in the market

Chipotle – PEST Analysis

PPPOLITICAL Local government corruption leading to unfair treatment of foreign entities. Diversify to different states. Enter with JV partner familiar with Indian Politics.

SSSOCIAL Adapt menu to cultural taste and preferences. General social and cultural acceptance of type of cuisine. Leverage relationship with experienced JV partner

EEECONOMICAL INR/USD XR fluctuations lead to higher investment than anticipated. Limit currency risk exposure to initial investment

TTTECHNOLOGICAL Methods to preserve the raw product.

Recommendations:- Chipotle Moving to India

Decision: Go (with the Right Partner)

Strategy RisksProfitability

$10M Initial FDI 40% Contribution

Margin 8-Year Breakeven

Point 12.5% Return on

Investment

“Few Things Well” Use Joint Venture Two Locations

New Delhi Bangalore

JV for Social and Legal Risk Mitigation

Controlled Political and Technological Risks

Volatile Rupee: 39 to 51

ID Key Resource Improvement Strategy

1 Marketable Cuisine Adapt menu to address demographic

3 Brand Improve brand awareness in India with similar US promotions

8Business Acumen

Improve via strong JV partner for expansion into right markets and conduct business operations

Key Weakness

Consistent Key Strengths

• Financial Stability

• Available Capital

• Restaurant Efficiency

Recommendations:- Chipotle Moving to India

ByBy Ekta BawaEkta Bawa Naina DeoNaina Deo Rupsikha BorahRupsikha Borah Subhodeep Ray ChaudhurySubhodeep Ray Chaudhury