Chipotle Mexican Grill Inc. ( CMG) is an company that is a market leader for fast-casual restaurant industry. It has five major competitors. chipotle competitors .These include Qdoba Mexican Eats, Moe’s Southwest Grill, Baja Fresh Mexican Grill and Rubio’s Coastal Grill. Chipotle is also competing in a smaller head-to-head manner with Taco Bell, the market leader in the Mexican-style fast food sector.
Competition grew increasingly fierce when the industry was confronted with unimaginable challenges during the 2020 economic crisis. Restaurant chain companies business are competing on various levels. This includes menus, dining experiences innovativeness, prices, in addition to the size of their operations, geographical coverage, reputation and appeal for the investors. Chipotle’s competitors employ a variety of strategies to boost their business.
Background of Chipotle Background on
Before getting into the details about the competition It is beneficial to know the details about Chipotle. Similar to other fast-casual restaurants, Chipotle tries to combine the convenience and cost of fast-food establishments with high-quality meals and a more attractive atmosphere. Food is generally priced higher than a fast-food establishment. The food is also cooked at the table with healthier ingredients including fresh chicken, vegetables and meat items.
In 1998, five years after the company’s establishment, Chipotle only ran 16 locations, all in Colorado. In the same year, fast-food giant McDonald’s Corporation ( MCD) was an investor of major importance. In 2006, after McDonald’s had completed its sale from Chipotle the Mexican-style restaurant chain had grown to over 500 establishments. By 2021, publicly traded Chipotle was operating over 2700 locations. chipotle competitors
Qdoba Mexican Eats
Qdoba owned in conjunction with franchised restaurants in more than 700 locations by 2021. 2
It is a huge Mexican fast-casual restaurant chain it is among Chipotle’s major rivals. One of the major differences is that around half of Qdoba’s locations were franchises as of 2019. after 15 years in expansion, under control of the fast food giant Jack in the Box (
), Qdoba was sold to Apollo Global Management in 2018. Apollo’s other restaurant assets included Chuck E. Cheese’s and Peter Piper Pizza.
Moe’s Southwest Grill
Moe’s Southwest Grill, which is operated by Focus Brands, had more than 700 restaurants by 2021. They are mostly situated just east from the Mississippi River. 3 Moe’s Southwest Grill restaurants try to distinguish themselves by offering an offbeat and fun atmosphere. The menus feature items named after movie and TV celebrities. Focus Brands emphasizes franchising. From early 2020 their other brands were Auntie Anne’s, Carvel, Cinnabon, Jamba, McAlister’s Deli, Schlotzsky’s, and Seattle’s Best Coffee. chipotle competitors
Baja Fresh Mexican Grill
MTY Food Group is a company that owns or operates Baja Fresh Mexican Grill, and also manages La Salsa Fresh Mexican Grill. Baja Fresh Mexican Grill introduced its new design for the restaurant in 2013 along with the menu being revamped to put more emphasis on freshness and flavor. When MTY bought Baja Fresh Mexican Grill in 2016 the restaurant was operating sixteen2 restaurants. 4 Its subsidiary, La Salsa Fresh Mexican Grill was home to 23 locations at the time.
Rubio’s Coastal Grill
Chipotle is not the earliest fast-casual Mexican restaurant chain. Actually, Rubio’s was founded about ten years prior. However, the Rubio’s brand has not reached the same geographical footprint as Chipotle. Although the company is located in the West it expanded to Florida in the year the year of 2019. Privately owned by a private company Rubio’s owns establishments across more than 200 places. chipotle competitors
In the year 2010, Rubio’s went private through the deal with Mill Road Capital. affiliate owned by Mill Road Capital. Rubio’s is currently trying to distinguish itself from Chipotle and its rivals by introducing new seafood items, and also providing the majority of its California restaurant locations a beach-inspired style.
Chipotle is yet to be surpassed in size by large fast-food chain Taco Bell, which had more than 7,000 restaurants in the year 2020. 6 However traditional fast-food chains aren’t expanding as quickly as the fast-casual sector. However, Taco Bell has made adjustments to accommodate changing preferences of customers. They have introduced the Fresco menu with healthier options and upgraded its quality ingredients over the past decade. Taco Bell is owned by Yum! Brands ( YUM) The world’s leading company of fast food chains. Yum! Brands also is the owner of Pizza Hut and KFC.
The Bottom Line
Chipotle has been among the fastest growing companies in the industry of restaurants in the beginning of the 21st century. Chipotle capitalizes on the increasing importance in Hispanic cultural influence in America and also the country’s growing desire for fast-casual eating. Following a crash in the initial reaction to the financial market turmoil, Chipotle’s stock soared to new highs , after increasing more than 100 percent within just two months.
But, Chipotle does not have an exclusive position in food that is fast and casual Mexican food. Chipotle has to contend with competitors like Qdoba Mexican Eats and Moe’s Southwest Grill. Investors, the primary factor to consider is its structure company. Chipotle has majority ownership of its restaurants. This makes it a risky and aggressive investment for investors on stocks. But, those looking to start a franchise must to consider rivals.