Marketing Analysis Chipotle Mexican Restaurant
and Applebee’s Restaurant

by: Kimberly Wylie

Table of Contents

Introduction 3

Chiptole Mexican Grill  3

Line of Business  3

Sales 3

Target Market  4

Brands 4

Distribution 4

Promotion and Pricing 4

Advantages and Strengths  5

Applebee’s Neighborhood Grill & Bar 5

Line of Business 5

Sales 5

Target Market 6

Brands 6

Distribution 6

Promotion and Pricing 6

Advantages and Strengths 7

Comparison of Chipotle’s and Applebee’s Marketing Strategies 7

Websites 7

Conclusion  8

Works Cited  9

Introduction:

The following paper compares the marketing strategies employed by two successful restaurants, Chipotle Mexican Grill and Applebee’s Neighborhood Grill & Bar. This analysis will include an overview of each restaurant’s business, their current sales trends, and their specific target market. In addition, company brands will be discussed, as well as their manner of distribution, promotion methods, and pricing. With these factors determined, each company’s specific advantages and strengths will then be given. From there, a comparison of the two companies marketing strategies will be examined, including an overview of each company website, the strengths and weaknesses of these sites, and which features I personally preferred.

Chiptole Mexican Grill:

Line of Business:
Chiptole Mexican Grill was founded, in 1993, on a very simple idea, according to Founder and CEO Steve Ells. “Offer a simple menu of great food prepared fresh each day, using many of the same cooking techniques as gourmet restaurants. Then serve the food quickly, in a cool atmosphere.”¹ Ells and his team took this simple concept and built a quick-serve restaurant, where “customers can build a 1-1/4 pound burrito or tacos from a lineup that includes chicken, steak, barbacoa or free-range pork, as well as beans, rice, guacamole, and various other veggies and salsas. It also serves extras such as chips and salsa, beer, and margaritas.”²

Sales:
Today, there are approximately 300 Chipotles, in 20 states.³ In addition, they’ve taken this simple menu and received many accolades for their gourmet burritos and tacos. These awards include: Best Burrito, 2003 Readers’ Choice Sacramento Magazine, Top Bargain Meal, 2003 Readers’ Choice Denver’s Mile-High Magazine, Best Fast Food, Best of 2003 Austin Chronicle, and Best Dinner Under $10, 2003 Reader’s Choice The Pitch’s Best of Kansas City.⁴ These accolades have helped bring about Chiptole’s phenomenal growth with $230 million in sales in 2002, up 53.3% from 2001.⁵

Target Market:
Chipotle targets customers in urban areas who want quick food, but not fast food. These customers aren’t looking for the cheapest meal they can purchase, but an inexpensive one, that has a lot of value for the price. A younger, hipper clientele is targeted with the cool, modern décor of each restaurant, often located in trendy shopping centers. Fresh food and fresh atmosphere all help draw their targeted consumer.

Brands:
This same level of ‘hip’ carries through to their brand name – Chipotle. A chipotle is a distinctively flavored smoked jalapeno pepper. Just as a real world chipotle has a unique taste, so does its namesake restaurant. From guacamole made fresh several times daily, to their special cilantro-lime rice, the Chipotle brand name means delicious.

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1 qtd. in “Learn: Story.” No date. Chipotle Mexican Restaurant. 10 May 2004. <http://www.chipotle.com/>.

2 Hill, Jeff. “Chipotle Mexican Grill, Inc.” Hoovers. Hoovers Online database. University of Phoenix, Phoenix, AZ. 10 May 2004. <http://www.hoovers.com>.

3 ”Chipotle”.

4 “Learn: Critics.” No date. Chipotle Mexican Restaurant. 10 May 2004. <http://www.chipotle.com/>.

5 ”Chipotle”.