Background
Chipotle Mexican Grill, Inc. is one of the leading
fast-casual Mexican restaurant chains, with approximately 400 outlets in about
20 states, mainly in the West and Midwest. It was founded by Steve Ells in 1993
and based in Denver, Colorado. The name Chipotle derives from the Mexican
Spanish name for a smoked, dried jalapeno chili pepper. Founder Steve Ells
attended the Culinary Institute of America in Hyde Park, New York. Afterward,
he became a line cook for Jeremiah Tower at Stars in San Francisco, California.
In 1993, Ells took what he learned in San Francisco and opened the first
Chipotle in Denver, Colorado, near the University of Denver campus using an
$85,000 loan from his father. Ells and his father calculated that the store
would need to sell 107 burritos per day in order to be profitable. However,
after one month, the original restaurant was selling over 1,000 burritos a day.
Ells had originally planned to use funds from the first Chipotle in order to
open a fine-dining restaurant, but instead focused on Chipotle Mexican Grill
when the restaurants saw success.
In 1998, McDonald's made an initial minority
investment in the company. By 2001, the company had grown to be Chipotle's
largest investor. McDonald's' investment allowed the firm to quickly expand,
from 16 restaurants in 1998 to over 500 by 2005. In October 2006, McDonald's
fully divested from Chipotle. This was part of a larger initiative for McDonald's
to divest all of its non-core business restaurants - Chipotle, Donato's Pizza,
and Boston Market - so that it could squarely focus on the main McDonald's
chain. In a list of fastest-growing companies in 2009, Chipotle was ranked
eighth, based on increases in U.S. sales over the past year. As of April 2010,
976 restaurants have since opened throughout the United States and Canada.
QUESTION and ANSWER
1. What factors can you identify that
affect the supply of and demand for labor at
Chipotle
Answer:
There is several factors that
affect the supply of and demand for labor at Chipotle. The growth of its
company is one of the factors that had affected the demand for labor at
Chipotle’s company. Chipotle is scheduling the addition of more than a hundred
new outlets per year. To made this possible, Chipotle need to hire more
workers.
Because of the immigration laws is
too harsh over the immigration workers, Chipotle facing a problem with the
supply for a labor. The immigration is not allowed to stay in United State for
a long term. Moran has been arguing the government. He wants a good workers to
be allowed to stay in the United States for a long term rather than return them
to their country after a year or two. To replace and training workers for every
two years is very expensive.
Workers that didn’t have document
has quit because they worried their documents would not stand up to government
scrutiny. They left the company to avoid any trouble. This is the big problems
that affect the supply of labor at Chipotle. In the state of Washington,
Chipotle has launch a job fair, and only eight out of 100 people is qualified.
These things really affect the supply of labor.
2. Immigrant
workers have been an important part of the labor pool for Chipotle (and many
other restaurants). If you worked in Chipotle’s HR department, would you
recommend that it continue to recruit immigrant workers or target another group
of workers for hiring? Why? Which other groups, if any, would you target?
Answer:
If I worked in Chipotle’s HR
department, I would recommend recruiting
half immigrant workers to work in the restaurant.
This is because most of them are undocumented immigrants or lack of permit. To
solve this problem, I propose to recruit 50% immigrant workers and 50% local
workers. We can’t deny that the Hispanic is an important source of customers
for Chipotle. So we still have to recruit few immigrant workers to easy the
customers to communicate and interaction with our staffs. On the other hand, we
still to recruit the local workers. It is because immigrant employee turnover
has been too serious. Most of them are holding temporary visas and they will
return to their country of origin after a year or two. Besides that, local
workers can stay longer to work for Chipotle if we provide some good benefits
and promotion to them, take a chance to train them become a loyal, committed,
and quality worker.
3. Suggest
two or three recruiting methods Chipotle could use to locate qualified, legal workers
who would be likely to stay with Chipotle for the long term. What are the
advantage and drawbacks of the methods you choose?
Answer:
|
Method
|
Advantage
|
Disadvantage
|
|
1. Directs
applicants and referrals
|
·
Direct applicants are to some extent
“sold” on the organization.
·
It costs much less than formal
recruiting efforts.
|
·
Sometimes, the referrals contribute
to hiring practices that are or that appear unfair.
|
|
2. Electronic
Recruiting
|
·
A cost is a very expensive because
the organization only has a web page.
·
The Chipotle make career information
available in their website.
|
·
Accepting applicants at the
Chipotle’s website is not successful for smaller and less well-known
organization because fewer people are likely to visit the website.
|
|
3. Advertisements
in Newspaper and Magazines
|
·
Advertising can be expensive.
|
·
This medium offers little ability to
target skill levels.
·
Typically, many of the people reading
classified ads are either over-or under qualified for the position.
|
|
4. Private
employments agencies
|
·
The private employment agency is more
expensive than using a public agency.
|
·
The private agency is a more suitable
source for certain kinds of applicants.
|
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