1) Some argue that Chipotle, like many growing firms, focused on growth over att
ID: 358781 • Letter: 1
Question
1) Some argue that Chipotle, like many growing firms, focused on growth over attention to store-level operations, which increased operational risk, as many processes were not standardized. Which standardized processes, both in operations and sourcing, are important to the Chipotle model and need to be addressed to reduce risk?
Subpart: Chipotle's operations led to a reputational crisis that caused customers to become wary of eating its food. Other companies in similar situations have made great efforts to communicate how the product was different and safer. In Chipotle's case, its burrito looked no different after all of its food safety changes. How could the product and process be altered to communicate the new focus on safety? Could this change be demonstrated?
Please answer it in more than 600 Words.
Explanation / Answer
Chipotle has set as an effective example of alignment of business and operating model. It is a popular Mexican chain restaurant.
The alignment is also shown through the design of management of the company and its stores. It focused on enhanced restaurant experience.
The elements of fine dining and convenience are combined with quick service and creation of value. It focuses on providing quality food, environment of dining that is clean with efficient service. The perspective focuses on fast and high quality food. The stores maintain high rate rates it turn over of 300 customers per hour. The average value of the store is around 2.5 million dollars according to the report sport in 2014. There is arrangement made in assembly lines for achieving high efficiencies.
Multiple servers are used for constructing a perfect burrito for the customers form beginning to end. There is ownership taken for smallest of task. There is reduction in variability with the througput method of speed. There is flexibility offered got the customers to make choices. There is service of high quality products and stores do not have freezers as the food is prepared fresh. Premium pricing is used for the product. Full price items' sale is done and no promotions are introduced. There is importance given to value meals.
The standardized process followed by the company involves delivery of fresh ingredients. There is no freezer used for the ingredients instead the focus is on fresh ingredients.
The health crisis of Chipotle bright into effect the problems associated with the contamination of food. It is important to introduce a centralised system to avoid contamination. The use of effective food sources and good methods will also be useful.
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