What Are Chipotle's Competitors

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Chipotle must maintain their powerful brand recognition because they face the threat of new competition. Although, the barriers to entry are high in the industry, there are still sizeable corporations with in the industry large enough to create a new competitor. Due to the product differentiation offered by CMG, the health conscious foods, Chipotle’s prices are higher. It is certainly not the cheapest place to grab a lunch, consequently the face the threat of customers substituting either by price shopping for lunch and going to a competitor’s restaurant, or by staying at home and cooking a healthy meal. External social factors that contribute to the growth of CMG, and the casual dining industry as a whole, are that the consumer is becoming more educated. …show more content…
America is the most obese country on earth and consumers want a healthier option to choose from, rather then traditional fast food restaurants. The “going green” motivation could be another reason for the growth in this industry. People like the convenience of not having to prepare a meal at home. Technology is another important external factor for Chipotle. CMG like many other companies, has embraced the power of social media. They allow online ordering and have their own mobile app. All of this to answer the level of convenience demanded by their customer. Economically, if we have a slowdown, or a recession it could conceivably cripple restaurants whose brand is not strong. People would have less discretionary income, to use to purchase from the restaurant. Additional threats would be the government and regulatory laws. The restaurant industry is monitored by the Food and Drug Administration and there are strict laws put in place to protect the restaurants consumers. Any violation of regulatory practices could have a profound impact on the revenue of the

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