Chipotle Mexican Grill enjoys a good reputation of being the best fast food restaurant in offering quality food and customer services besides treating its employees well. Despite the good reputation, Chipotle has been working hard to regain the favor of their customers after several controversies about the company getting their meat from overseas. The new storefront in Florida will provide a work plan that will give assurance of our products being acquired from the local farmers rather than overseas. Great customer care and a positive employee culture links are well understood by the organization (Subramanian, 2017). The analysis of Chipotle’s current workforce planning illustrates an efficient organization and business strategies that had made the company succeed since when it was opened in 1993. However due to the competitive fast food industry and the controversies being faced by the company in the United States the company needs a workforce plan for its new storefront to be opened in Florida.
Organization Overview
Founded in 1993 by Steve Ells, Chipotle Mexican Grill was started with the aim of providing quality fast foods to the people of Colorado. Currently, Chipotle Mexican Grill Inc. is made up of restaurants located in the United Kingdom, Canada, and the United States. The restaurant’s name was derived from a Spanish name known as chipotle meaning jalapeno chili pepper that is dried-smoked. The restaurant specializes in burritos and tacos that are offered to customers along with assembly line production and organic and natural ingredients (Walker & Merkley, 2017) . When McDonald divested all of Chipotle’s non-core business restaurants in 2006, the company was on the public’s eye after being listed on the New York Stock Exchange .
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Chipotle Mexican Grill restaurant has a mission which is defined as Food with integrity that focuses on the use of only pure organic ingredients and meat that has naturally been raised serve the customers. Chipotle has its branches in approximately 43 states with more than 1200 locations including Toronto, England, France, Washington, and Ontario. According to Walker & Merkley (2017), the company has a workforce of employees of approximately 30,940 and a yearly net income of 215 million US dollars. Chipotle Mexican Grill Inc. is run a board comprising of a chairperson and four directors with its headquarters at Denver in Colorado.
Organization Structure
In any organization, the reporting structure is a vital tool. The organization’s structure is a roadmap of different positions and management levels. Depending on the organization, every business has a command chain which is structured uniquely. Due to the changing business environment. Chipotle’s organizational structure has also changed to adapt the business growth over time. With multiple hierarchy levels, the vertical organization is similar to the majority of organizations and businesses (Subramanian, 2017). At Chipotle, the board of directors fills the top of the pyramid, and they also have the responsibility of making the company’s decisions.
The pyramid’s bottom consists of store managers, shift managers, assistants and employees who complete the daily operational tasks. There are also regional managers who oversee the different branches of the company in the US and beyond. As such, the horizontal structure of Chipotle is divisional. In a divisional structure, units are divided into geographic regions, product, and consumer. The mission of chipotle is being committed to delivering foods of great quality with integrity to the customers no matter their locations (Subramanian, 2017). Chipotle’s goal is the same from region to region, store to store and district to district.
Mission/Vision/Values
A company’s Mission, Vision, and values are important in creating its value and meaning. The mission describes the purpose of a given company being in the business world today. Chipotle’s mission is serving high-quality food while keeping reasonable prices. The vision shows the ambition and direction that a company is taking. Changing the way people eat and think about fast food is the Vision of Chipotle Mexican Grill. The values of Chipotle are built in believing that the purchase of fresh ingredients and hand preparation is not enough, so they spend time on farms and fields to understand how their food is raised and where it comes from (Walker & Merkley, 2017). The company also focuses on recruitment and retention of top performing employees to make the experience of their restaurant’s exceptional.
As stated from annual reports, Chipotle’s mission, vision, and values have varied over the years due to several controversies that the company has been facing. The various variations between years have been to enhance the statements efforts associated with the previous years. To clear those controversies that the company is facing on where they get their products, the new storefront aims to stick to its mission and vision statements by sourcing their products from the local farmers. There is a clear connection between Chipotle’s vision statements and commitment of resources which can be seen in its marketing campaigns (Walker & Merkley, 2017). Chipotle always aims to promote the local farmers to make sure that there is the sustainability of naturally-raised products which goes along with their mission statement.
Organization Culture
Since the early days of its enterprises, Chipotle Mexican Grill has been successfully executing its employee engagement strategy and company culture. The company has inserted itself into the landscape of American restaurant and has changed the way many companies engage their employees in culture building. Chipotle transformed in 2005 that made its culture as distinct as its food (Subramanian, 2017). The main focus of the company was to create a system where the promotion of managers within would a create a feedback loop which had better, more engaged and more motivated employees.
A company has to take root when creating a culture which enables employees to grow and be where they want. Chipotle believes in the creation of a culture based on performance leading to employees and customers’ best restaurant experience possible. Chipotle has a culture of embracing the employees’ strengths, personalities and perspectives. The company believes that these factors are vital to the success of their brand. Its corporate culture is unique and is continually reinforced at the local level (Subramanian, 2017). The restaurant locally sources its meat and vegetables which means they don’t use any freezers.
Business strategy
The generic strategies for the company’s competitive advantage serve as the starting point to the discussion of Chipotle opening up a new storefront in Florida with the aim of sourcing their food products from the local farmers in Florida. There are primary strategies that chipotle should use to create a competitive advantage in their new Florida opening. The strategies include differentiation and leadership (Subramanian, 2017). Using Porter's model, Chipotle can be categorized into that of differentiation.
There have been claims that the company cannot meet it mission statements with responsibly raised meat and that it has been using conventionally sourced meat from animals that were raised with sub-therapeutic antibiotics, growth hormones and conditions that are generally considered inhumane. In 2013, it came out to 88 million pounds of its chicken, and 7,8 million pounds of its beef and customers have been complaining of becoming sick due to their products. The main objective of opening up the new storefront in Florida is to partner with the local farmers in using fresh products from their farms.
Unlike most fast foods restaurants Chipotle’s in store employees cook and prepare their foods in the restaurants, and that should be a strategy in their new restaurant. Employees don’t have to reheat and assemble precooked, frozen or precut; they chop the fresh vegetables with knives and cook fresh meat on the grills in their open kitchens which are open for the customers to see how they are cooked (Rowell, 2016). Chipotle’s differentiation focuses on providing high-quality foods with higher value compared to its competitors. The quality of their food is based on the use of ingredients that are of high quality with classic cooking methods.
Internal Strengths
Chipotle’s internal strengths are important components when it comes to opening up a new store. Because of its rapid growth during the past few years, the new store to be opened in Florida has a high chance of attracting the local people. There were roughly 510 Chipotle restaurants in 2015 which have nearly quadrupled today (Grant,2016). The company has had positive reports on earnings and revenue every year which means the new store will be an advantage to the company because it will increase their gains. The new store will also help in offsetting the weaknesses at the core stores.
The company also has a robust balance sheet without depth and generates a lot of cash flows. The financial stability is an internal strength that will ensure the availability of resources in the establishment of the new opening. Chipotle has approximately one million US dollars’ annual cash and investments. Therefore, the company can continue with its business under favorable conditions without paying interests to creditors even after opening up a new store (Grant, 2016). With 3 million US dollars of share repurchases, Chipotle should be able to buy enough stocks for the new store which will give them some lift to earnings per share.
Another strength of Chipotle Mexican Grill is that it provides quality ingredients. The new store intends to obtain its ingredients from the local farms in Florida giving them a greater chance to promote the local farmers and attract new customers. The company is also focused on improving its food safety practices (Grant, 2016). With its safety program assessment and a review of their products, they will be able to provide the customers with fresh and healthy food.
External threats
One of the major threats faced by Chipotle is the violation of prices and crops yields which if not controlled it might affect the market of the new Florida store. The risk has been heightening because other chefs and health-conscious consumers purchase limited organic and natural ingredients. This makes it hard for suppliers to meet the growing demand. With the new store opening, Chipotle needs to be conscious not to chase away their customers because most of them are conscious of what they purchase. The micro-environmental forces like technology and economy and major external threats that the company should consider when opening up the new store. Technology has no limits to what the customers share online about the restaurant; as such, Chipotle should be cautious on the foods they offer the customers (Grant,2016). If the new restaurant does not provide the locals what they need, most of them will choose to stay at home and to prepare their dishes causing them to lose their business.
Workforce Planning Needed
Chipotle needs a workable workforce plan when it comes to opening up a new restaurant for them to achieve their goals. And also on how they will staff and hire companies that the new store will get their produces, meat and ingredients from. This is because the company has become controversial on its sourcing over the past few years. The company needs to gain power over their suppliers instead of vice versa (Neck, 2016). By integrating backward, Chipotle can achieve these specifically by investing in their plans through cultivation and raising meat to their specifications. They can also find more local suppliers based in Florida and utilize a team to conduct regional searches. Chipotle should also consider quicker and simpler meals like breakfast burritos and other meals in their core and a new restaurant. Through this, consumers will be more enticed with their food and prices.
The general managers are entitled to hire the new crewmembers with a strong work ethic for the new store. Chipotle should hire employees who are team-oriented and enthusiastic for them to create a positive. With its team of real estate managers who have experience in researching the potential location for the new restaurant. They have dedicated a lot of time and thought in the process, and they chose Florida as best when it comes to projected sales and a target for return on investment. The workforce goal of the restaurant should be offering the customer’s quicker services (Neck, 2016). This is not only helpful with the customers having an easier and quicker experience when they order food, but it also enables the customers to see the fresh ingredients and food that are used in creating their food.
Critical Staffing Issues/Areas of Focus
Critical staffing issues are the core factors that determine how the staff of an organization is managed. Due to many controversies that the company has been facing over the past few years, the new storefront to open in Florida needs an ideal staff for it to work smoothly without major issues. According to Band et al. (2016), how the HR of the company will function depends on the major area of focus such as the size of the storefront’s staff, how they will employ and the number of workers needed and also the dynamics of how the store will operate.
HR will be responsible for typically managing and recruiting new employees to work on the new storefront. They will establish screening policies and procedures including drug testing and background checks for the new employees. They also need to ensure that an employee is who he says he is through identification and authentication procedures. These procedures will enable the new storefront to meet the needs of the customers and end the controversies about the quality of their food that the company is facing.
Staffing gaps and surpluses
Staffing gaps and surpluses are the controllable staffing actions, done by the management, that need to be taken within a specific period to meet the needs of the company. Despite the food crisis and controversies of Chipotle, the stores are managed with simpler operations to facilitate additional meu draws to the customers. The store managers are responsible for ensuring the stores are running effectively and meeting the customers’ satisfaction. HR includes the recruitment officers who are responsible for hiring employees and ensuring they meet the standards of Chipotle. The new Florida storefront will have an advantage on the managers offering a broader knowledge base on how they will be able to approach both operational movements and menu innovation. Due to staff surpluses, the employees will create new executive positions, including one for the franchise development that will be followed by the company. The company is also entitled to hire a new general manager of the Florida store and train them at their current location so that they will be ready for the new location when the business opens.
Staffing strategies
Staffing strategies are the processes of defining and addressing the staffing implications of a specific organization strategic and operational plans. The main purpose of strategic staffing is to identify and develop a skilled workforce that will meet the changing needs of the company. Chipotle needs proper staffing strategies that will enable them to build a better reputation over the controversies they have been facing in the past few years.
Since the line cooks are responsible for handling all the foods served to the customers, the new storefront needs to ensure that they adhere to all the standards need for preparation of foods. Chipotle will only succeed in getting the customers satisfaction if their line cooks prepare standardized menus by determining food requirements, reviewing proportion scheduled and adhering to the highest standards of cleanliness. The company should also ensure that they ensure the highest caliber of freshness and quality by inspecting all food items and oversee how their line cooks are preparing the food as they follow the proper cooking methods, guidelines, and procedures.
Staffing plans
Staffing plans show the number and types or classifications of employees that the company should have on board overtime is also a systematic process that will ensure Chipotle has the right number of an employee with the right skills for them to fulfill the business needs. The approximate number of workers to be recruited in the Florida store includes five store managers, five cashiers, 30 cleaners, five security guards, 30 chefs and 50 waiters and waitresses for both day and night shifts. The company will also ensure that the employees get all the resources they need by conducting new employee orientation programs. This will lead to higher job satisfaction, lower the rate of absenteeism and lower the rate of attrition.
HR will also offer regular classes to support the employees and aid their transition at the workplace. The store managers will be responsible for managing the restaurant while the rest of the employees will work together to make the new store meet the customers’ satisfaction. The managers will be paid overtime because most of them overwork beyond working hours for the company to succeed. By ensuring this, Chipotle’s new store will attract and keep good crew, store manager and other employees which is vital for the future success of the company.
Implement and Monitor
After the implementation of the above staffing actions, there should be monitoring of the staffing requirements to prevent fluctuations of the business due to legislation, economy, and market. The recruitment managers should continue with their practice of selecting the best candidates for any new store. Employees should also continue with their spirit of working hard and following the company’s mission for quality products and services. The staffing strategies and plans indicate that the plan for opening up the new restaurant in Florida should be achieved within a shorter time due to the availability of resources and responsible managers.
Conclusion
The original motivation behind this paper came from the desire to understand and gain insight on an overview of Chipotle Mexican Grill and the hypothetical situation of chipotle opening up a storefront in Florida. The paper has given out an analysis of workforce planning at Chipotle Mexican Grill and how the company is going to staff/source its ingredients. The chipotle current mission is “food with integrity”; however, the company sourcing their ingredients from out the country which has caused a lot of controversies. This new storefront will be partnering with local farmers, agriculture to give the restaurant a natural and organic ingredient. The gap analysis has also been done using Behcet workforce plan model. Chipotle opening up a new restaurant will not only bring success to the company, but it will also motivate new employees in the new working experience.
References
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Grant, R. M. (2016). Contemporary strategy analysis: Text and cases edition . John Wiley & Sons.
Neck, C. P., Houghton, J. D., & Murray, E. L. (2016). Chipotle . SAGE Publications, Inc..
Rowell, K. M. (2016). Food with Integrity: A Financial Analysis of Chipotle Mexican Grill (Doctoral dissertation, The University of Mississippi).
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Walker, R., & Merkley, G. (2017). Chipotle Mexican Grill: Food with Integrity? . Kellogg School of Management.
