Space Expansion for Chipotle Mexican Grill-paper代写

本文是一篇优秀的paper代写范文-Space Expansion for Chipotle Mexican Grill，供大家赏析学习，这篇论文讨论了Chipotle的空间扩张。Chipotle 是墨西哥一家餐馆连锁店，为消费者提供墨西哥传统的食品，如玉米饼等。但最近发现，店铺空间不足的问题越来越严重，导致一些消费者无法在舒适的地方等候。所以店铺打算进行空间扩张，让客户消费得更加舒服。

Executive Summary

Chipotle Mexican Grill is a chain of restaurant which provides consumers with traditional Mexican food such as burrito, tacos and etc. The company has discovered that there is a shortage of store space for consumers which leads to the situation that some of the consumers cannot wait in a comfortable place. Therefore the company was planing to make an expansion to the shop areas in order to provide the customers more satisfaction. It has been researched by Heung and Gu (2012) that a comfortable space for dining is one of the key factors that affect consumers’ satisfactory levels. As a result, the increasing sales volume and consumer demands for service lead to the consideration to expand the shops of Chipotle Mexican Grill.

The annual reports are analyzed and I have also conducted interviews with stakeholders to understand more about the plan to expand shop areas. The sales volume and the annual revenue will indicate the profitability of this chain restaurant. The interviews will give a deeper understanding of the company and the practicability of the proposal. The report also lists some of the plans to maximize the efficiency of a certain area. The main risk that lies behind is the layout of tables that may have impact on the use ratio of the space in a retail store. The problem has been identified and the recommendations are mainly focus on the layout of the tables to maximize the use ratio of the current areas and also expand the space in order to create comfortable rooms for consumers to have their food inside Chipotle Mexican Grill shops.

Introduction and Problems

For a chain restaurant, as the consumers gradually have higher standard for both the foods and services, it is important for Chipotle Mexican Grill to figure out how to provide consumers with a less crowded space to enjoy their meals. The development of this chain restaurant is impressive, we can tell from its 5 year cumulative return since 2008 in the graph below:

Graph 1: Comparison of 5 year cumulative total return (Chipotle Mexican Grill. Inc, 2014)

Graph1 shows how fast Chipotle Mexican Grill has been growing since 2008 compared to other restaurants. The quick growth of return indicates the rapid increase of consumer quantity, therefore, it is necessary for the company to try to deal with more consumer demands and satisfy more kinds of requirements.

Alternative Solutions

To deal with the increasing number of consumers, there are several aspects that should be taken into consideration. The efficiency of the area: if the area is appropriately designed to maximize the usage of the areas; the effective hours of the area: how long is the peak period during the day and when is the area most crowded; the actual space can be used: is the space big enough to contain large number of consumers and the cost of area; last but not the least, the time a consumer needs to finish his/her meal also affects. Accordingly, there are mainly three methods that can be considered to answer each aspect of the problems:

1: Encourage consumers to take away rather than having their meals inside the shop.

2: Make adaptations to the chairs and tables in order to have more seats for customers.

3: Expand the shop areas and have more space for chairs and tables.

4: Shorten the time needed to provide a meal.

The firstly solution is the most cost-saving and time-saving method, the restaurant can encourage more consumers to take away their food by giving benefits to consumers who do not eat in the restaurant. The method is not efficient and may alter the culture of Chipotle Mexican Grill that people may gradually change their perception of the restaurant to a take away fast food restaurant, which is a negative impact on the brand image.The second method can also be quickly applied and there are detailed design can be found in Design & Specs Center (Anon., 2015). The company can hire specific designers to design a most efficient shop layout for the crowded restaurants and the shops can alter the inside layout of chairs and tables and somehow alleviate the problems. As Liu and Jang (2009) have examined that the dining atmosphere can greatly affect the moods of consumers, the role of designer is significant, so the choice of designer is an important task. However, the solution 2’s effect is limited since no change is done to the real space. Method three is a way with huge impact on the space, while it is also a method which costs large amount of money and time. It is significant for the company to clearly calculate if the investment into the space expansion is reasonable and can make more profit by doing so. To shorten the time of providing food, the company needs to train the staff and hire more staff; it is a long procedure that may take the company a lot of time to improve its human resource system. All four methods have their advantages and disadvantages; I think the company should combine these methods and as a result, have a most efficient solution to the problem mentioned.

Recommendation and Evidences

My recommendation to solve the problem is to combine all of the three methods that are listed above. Firstly, the expansion of shop areas should be started immediately with the rental contract and the purchase of tables and chairs. Meanwhile, due to the method of expansion is time consuming, the other two methods should be used. Consumers should be informed of the current situation of limited dining area and the consumers who take away food can be provided with benefits. The layouts of tables and chairs should be reorganized and a designer can be hired to maximize the use ratio of the current areas.

I have interviewed some of the consumers of Chipotle Mexican Grill and I have got several points that is related to the problem:

1. Sometimes seeing a long queue makes us feel frustrated.

2. The actual time spending on queuing is not as much as expected.

3. Having meals during the peak hours makes us feel uncomfortable.

The consumers are satisfied with the speed of providing meals while the space is a problem that can affect their dining moods. From the result of the interview, we can discover that the problem of food-providing speed is not a problem to the consumer experiences while the space is actually the most urgent problem to deal with at present.

Meanwhile, the service staffs are also interviewed for their working environment satisfaction, and it has been reported that the working satisfaction is highly related to the working environment (Vrabie, 2014). The ideas from them can be concluded as following:

1. It might be crowded during the peek hours and the working area will also be crowded due to comparatively higher work load.

2. However, it is good to keep the working area comparatively condensed therefore the speed of work can be maintained fast.

The working areas of Chipotle Mexican Grill should be maintained the same in order not to make service staff feel unfamiliar and not to slow their speed down. The staff in the shop is currently wanting no changes into the working area layout. The alters to area planning should mainly focus on the customers’dinning areas to improve consumer experiences.

Moreover, there are annual reports of Chipotle Mexican Grill analyzed to figure out if the methods are appropriate for the company. The culture of this chain restaurant is to provide focused food categories and is now working on improving the dining environment. The annual report has mentioned the company’s aim to change people’s perceptions of fast food. This is not only by improving the food qualities but also by changing people’s dining environment. As is indicated in the annual report, the revenue has been increasing for more than 5 years (28% in 2013 and 18% in 2014) (Chipotle Mexican Grill, 2015). The strong market development provides basis for the large investment into the rental expenses. Opening a new store may be unprofitable at the beginning due to the large investment and the low initial awareness of consumers. As a result, the expanding of an existing store makes more sense to boost the profits during a short period of time.

Conclusion

The space of some Chipotle Mexican Grill shops should be expanded for the increasing consumer volumes and there are generally four methods are analyzed according to various aspects. The final recommendation for the company is to combine these ways into a long-term plan. The company can short-termly make some adaptation with the layout of the tables and chairs and in the long run, the company can try to have larger area for the dining places by opening more stores or enlarging the shop acreage.

References

Chipotle Mexican Grill, (2015). 2014 Annual Report and Proxy Statement.RetrievedDecember 13, 2015, from

http://phx.corporate-ir.net/External.File?item=UGFyZW50SUQ9NTM3ODY4fENoaWxkSUQ9MjI2OTk2fFR5cGU9MQ==&t=1

Chipotle Mexican Grill, (2014). 2013 Annual Report and Proxy Statement.Retrieved December 13, 2015, from: http://phx.corporate-ir.net/External.File?item=UGFyZW50SUQ9Mjc3NjI5fENoaWxkSUQ9LTF8VHlwZT0z&t=1

Design & Specs Center (2015). Retrieved December 10, 2015, from http://www.seatingexpert.com/help_design.asp

Heung, V. C., &Gu, T. (2012). Influence of restaurant atmospherics on patron satisfaction and behavioral intentions. International Journal of Hospitality Management, 31(4), pp. 1167-1177.

Liu, Y., & Jang, S. S. (2009). The effects of dining atmospherics: An extended Mehrabian-Russell model.  International Journal of Hospitality Management, 28(4), pp. 494-503.

Vrabie, A (2014). How to Get the Most Out of a Small Office Layout.Retrieved December 11, 2015, from http://blog.sandglaz.com/maximize-a-small-office-layout/

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