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Forecasting with the proposed operational improvement suggestion(s)
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Team members: Tianmeizhi Fu (Kelly)Jiahao HuangTingting LaiMadalena LeeChipotle? Revolutionized Fast FoodThecategorywechoseisrestaurants.OurgroupprojectisChipotle,whichwasfoundedin1993tobridgethegapbetweenfast-foodchainsandmorecasualsit-downrestaurants,givingbirthtothenow-famousfast-casualrestaurantconcept.Itsoriginalidea,preservedtothisday,wastoofferfreshlypreparedfoodwithqualityingredientswhilekeepingthefast?partoffast-food.ChipotleisrankedontheFortune500andisrecognizedonthe2021listsforForbes’America’sBestEmployersandFortune’sMostAdmiredCompanies.Withnearly100,000employeespassionateaboutprovidingagreatguestexperience.Chipotleisalongtimeleaderandinnovatorinthefoodindustry.ItsvisionstatementisWebelievethatfoodhasthepowertochangetheworld.?Asafood-focused,people-firstcompany,itsmissionofCultivatingaBetterWorldmeansmorethanjustusingrealingredients.Itmeanshiringpassionatepeopleandinvestingintheirfuture.Itmeanschampioningdiversityandcelebratinginclusion.Chipotleisafor-profitcompanywhichoperatesrestaurantsintheUnitedStates,UnitedKingdom,Canada,Germany,andFrance.ChipotleMexicanGrillannualrevenuefor2022was$8.635B,a14.41%increasefrom2021.TheidealtargetmarketofChipotleismillennials,collegestudents,andyoungerprofessionalsaged18-28.Manyofthesepeopleconsidercookingasahobbyandwill
makeamajorityoftheirmealsfromtheirownkitchen,specificallyusingfreshandhealthyfood.(Haley, 2022)TakingaLeanstrategy,whichemphasizesminimizingwasteandsimplifyingprocedures,mightbeonemethodtoboostChipotle’sefficiency.Customersanticipatepromptandeffectiveservice;thus,streamliningtheorderingprocessisanimportantareafordevelopmentinthisrespect.Chipotlecanprovideitsconsumerswithabetterexperiencebyshorteningwaittimesand cutting out unnecessary operations.Inventorymanagementisanotherareaforimprovement.Becauseingredientsareonlyproducedandcookedwhenrequired,foodwastemaybereducedusingaJITinventorymanagementsystem.Thismethodaidsinmaintainingfood’sfreshnessandminimizeswaste.Kaizenevents,whichencouragestafftoparticipateincontinuousimprovement,mightbeusedatChipotletohelpkeeptheseenhancements.Byinstillingamindsetofconstantrefinementintheworkplace,workersmaycollaboratetoidentifyproblemareas,thenimplementsolutionsthat
boostproductivityanddelightcustomers(Helmold,2020).Employeesmayfeelmoreinvolvedinthecompany’ssuccessafterparticipatinginsuchactivitiesbecauseoftheincreasedfeelingsofpride and ownership they experience.Inconclusion,ChipotlemaybenefitfromadoptingaLeanstrategy,implementingjust-in-timeinventorymanagement,andencouragingstaffparticipationinKaizeneventstoenhancethecustomerservicetheyprovide.Chipotlecanprovideabetterserviceandmorecontentconsumersbyeliminatinginefficiencies,standardizingprocedures,andencouragingconstant improvement.Chipotle Flow Chart
Chipotlewasbornoftheradicalbeliefthatthereisaconnectionbetweenhowfoodisraisedandprepared,andhowittastes.Realisbetter.BetterforYou,BetterforPeople,BetterforOurPlanet.Itmaybethehardwaytodothings,butit’stherightway.Chipotle’sdigitaltransformationismetwithsignificantsuccess,fueledbytheirwillingnesstounderstandtheircustomersandabilitytomeettheirdemands.Bykeepingtrackofindustryandcustomerbehaviortrends,Chipotleisabletotailoritsstrategies,beitintermsofdigitalordering,drive-thrus,orsocial media to capture the attention of their audience.
Reference1.Haley. (2022, March 14).Chipotle marketing strategies:How to make the brand morethan burritos. AVADA Commerce Blog. Retrieved February10, 2023, fromhttps://blog.avada.io/resources/chipotle-marketing-strategies.html2.Helmold, M. (2020). Lean management and Kaizen. Springer international publishing.3.Harvard, D. (n.d.). Chipotle: It’s Not the Burrito, It’s the Operating Model. [online]Harvard. Available at:https://d3.harvard.edu/platform-rctom/submission/chipotle-its-not-the-burrito-its-the-operating-model/#:~:text=Data%20shows%20the%20most%20popular,turned%20over)%20%5B1%5D [Accessed 11 Feb 2023].4.Chipotle Mexican Grill, Inc. (2021, May 10). Chipotle Increases Wages Resulting in 15Per Hour Average Wage and Provides Path to Six Figure Compensation in ~3 Years.[Press release]. Chipotle Newsroom. Retrieved fromhttps://newsroom.chipotle.com/2021-05-10-Chipotle-Increases-Wages-Resulting-In-15-Per-Hour-Average-Wage-And-Provides-Path-To-Six-Figure-Compensation-In-~3-Years5.The Food XP. (n.d.). Chipotle Menu Prices. [online] The Food XP. Available at:https://thefoodxp.com/chipotle-menu-prices/ [Accessed 11 Feb 2023].6.Google (n.d.). how many staff people per chipotle store [Online search results]. Retrievedfromhttps://www.google.com/search?q=how+many+staff+people+per+chipotle+store&ei=tQnnY–FApLI0PEPl_O0sA8&ved=0ahUKEwivtPrewYz9AhUSJDQIHZc5DfYQ4dUDCBA&uact=5&oq=how+many+staff+people+per+chipotle+store&gs_lcp=Cgxnd3Mtd2l6LXNlcnAQAzoKCAAQRxDWBBCwA0oECEEYAEoECEYYAFCjBlijBmCZCWgEcAF4AIAB3wGIAd8BkgEDMi0xmAEAoAECoAEByAEIwAEB&sclient=gws-wiz-serpWeebly, I. (n.d.). IS2000 [PDF].https://is2000-001969267.weebly.com/uploads/3/9/1/5/39151477/ishw7_1.pdf [Accessed11 Feb 2023].
1 Team members: Tianmeizhi Fu (Kelly) Jiahao Huang Tingting Lai Madalena Lee Business Category: Restaurant Location chosen: 2675 El Camino Real, Palo Alto, CA 94306 Chipotle ? Revolutionized Fast Food A restaurant layout is a conceptual sketch of your restaurant space that includes the dining areas, kitchen, storage, bathrooms, and so on. It shows how your restaurant will look and function. Chipotles layout type is product layout. Products that require a continuous or repetitive production process use the product (or assembly-line) layout. When large quantities of a product must be processed on an ongoing basis, the workstations or departments are arranged in a line with products moving along the line. Automobile and appliance manufacturers, as well as food-processing plants, usually use a product layout. Service companies may also use a product layout for routine processing operations. (OpenStax,nd) Among hourly workers, for example, Chipotle reported a turnover rate of 194% in 2021, up from 141% the prior year. Among salaried managers, turnover was 43%, compared with 31% in 2020. Field leaders and managers saw 21% turnover in 2021, versus 16% the prior year. And
2 even corporate staff turnover nearly doubled to 21% in 2021, compared with 12% in 2020. (L.J|A, 2022) The business facility layout for Chipotle is a customer-oriented layout, where the front of the restaurant is dedicated to customer service areas such as the cash register, the order counter, and the food pickup area. The back of the restaurant contains the kitchen and food preparation area. Layout type: customer-oriented Design capacity: approximately 30-40 people Current capacity: approximately 15-20 people
3 For Chipotle, the business utilization is calculated by dividing the current capacity by the design capacity, which is 15-20 people divided by 30-40 people, giving a utilization rate of 37.5-50%. This indicates that the business is running undercapacity. The efficiency rate is calculated by dividing the current capacity by the design capacity, which is 15-20 people divided by 30-40 people, giving an efficiency rate of 37.5-50%. This indicates that the business is running with low efficiency. Due to the COVID-19 pandemic, the business utilization and efficiency for all businesses may be affected by social distancing protocols, sanitation measures, and other safety guidelines. For example, Chipotle may have to reduce their capacity to accommodate social distancing measures, which would result in a lower utilization and efficiency rate. The advantages of the customer-oriented layout used by Chipotle are that it allows customers to easily move through the restaurant, quickly get their food, and efficiently pay for their food. Additionally, it allows staff to quickly prepare food and serve customers. The disadvantages of this layout are that it can be difficult to maintain social distancing in the restaurant, and it can be difficult for staff to move around the restaurant when it is busy. The advantages of the circulation-oriented layout used by the museum are that it allows visitors to easily move through the space and view the exhibitions. Additionally, it can help to create a more immersive experience by allowing visitors to explore the exhibitions in an orderly manner. The disadvantages of this layout are that it can be difficult to maintain social distancing in the museum, and it can be difficult for staff to move around the museum when it is busy. The advantages of the special-purpose layout used by the movie theater are that it allows for maximum seating capacity in a limited space. Additionally, it allows for a clear sight line for
4 all viewers. The disadvantages of this layout are that it can be difficult to maintain social distancing in the theater, and it can be difficult for staff to move around the theater when it is busy.
5 References One moment, please… (n.d.). One moment, please… https://www.posist.com/restaurant-times/restro-gyaan/elevate-guest-experience-with-a-stellar-restaurant-layout.html 10.3 location, location, location: Where do we make it? – introduction to business. OpenStax. (n.d.). Retrieved February 16, 2023, from https://openstax.org/books/introduction-business/pages/10-3-location-location-location-where-do-we-make-it#:~:text=There%20are%20there%20in%20types,another%20type%20of%20facility%20layout. 22, L. J. | A. (2022, April 25). Turnover skyrocketed at Chipotle in 2021, despite investments in people. Nation’s Restaurant News. Retrieved February 16, 2023, from https://www.nrn.com/fast-casual/turnover-skyrocketed-chipotle-2021-despite-investments-people
Team members: Tianmeizhi Fu (Kelly)
Jiahao Huang
Tingting Lai
Madalena Lee
Business Category: Restaurant
Location chosen: 2675 El Camino Real, Palo Alto, CA 94306
Chipotle ? Revolutionized Fast Food
A restaurant layout is a conceptual sketch of your restaurant space that includes the dining areas, kitchen, storage, bathrooms, and so on. It shows how your restaurant will look and function. Chipotles layout type is product layout. Products that require a continuous or repetitive production process use the product (or assembly-line) layout. When large quantities of a product must be processed on an ongoing basis, the workstations or departments are arranged in a line with products moving along the line. Automobile and appliance manufacturers, as well as food-processing plants, usually use a product layout. Service companies may also use a product layout for routine processing operations. (OpenStax,nd)The design capacity is 20-30 people, but current capacity is 30-50 people when the store adds some outdoor tables. Customers have options to sit indoors or outdoors.
Among hourly workers, for example, Chipotle reported a turnover rate of 194% in 2021, up from 141% the prior year. Among salaried managers, turnover was 43%, compared with 31% in 2020. Field leaders and managers saw 21% turnover in 2021, versus 16% the prior year. And even corporate staff turnover nearly doubled to 21% in 2021, compared with 12% in 2020. (L.J|A, 2022)
Reference
10.3 location, location, location: Where do we make it? – introduction to business. OpenStax. (n.d.). Retrieved February 16, 2023, from https://openstax.org/books/introduction-business/pages/10-3-location-location-location-where-do-we-make-it#:~:text=There%20are%20there%20in%20types,another%20type%20of%20facility%20layout.
22, L. J. | A. (2022, April 25). Turnover skyrocketed at Chipotle in 2021, despite investments in people. Nation’s Restaurant News. Retrieved February 16, 2023, from https://www.nrn.com/fast-casual/turnover-skyrocketed-chipotle-2021-despite-investments-people
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