TJ Lowden

1
Bangalore Burrito(Coming to a New Delhi Near You)
STRT 571 Final Project

• TJ Lowden
• Kathy Wang
• Onkar Kapoor
• Bryan Jolly

2
Chipotle Moving to India

• Company Overview
• 22,000 Employees
• 1.3B Revenue / 140M Profits
• 25 Average YoY Revenue Growth over last 5 Years
• First International Expansion April 2010 in
  London
• Analysis of Expansion into India

Strategy
Risks
Profitability

• 10M Initial FDI
• 40 Contribution Margin
• 8-Year Breakeven Point
• 12.5 Return on Investment

• Few Things Well
• Use 49/51 Joint Venture
• Two Locations
• New Delhi
• Bangalore

• JV for Social and Legal Risk Mitigation
• Controlled Political and Technological Risks
• Volatile Rupee 39 to 51

Decision Go (with the Right Partner)
3
Strategic Fit
India
USA
Consistent Key Strengths 2) Financial Stability
5) Available Capital 7)Restaurant Efficiency
ID Key Resource Improvement Strategy
1 Marketable Cuisine Adapt menu to address demographic
3 Brand Improve brand awareness in India with similar US promotions
8 Business Acumen Improve via strong JV partner for expansion into right markets and conduct business operations
4
FDI Assessment
Recent Recession reduced FDI in India
Increasingly Open Capital Flows
Managed Floating XR
RBI Controlled Monetary Policy
5
Risk Analysis and Mitigation
Risk type
Mitigation Plan
Implications
Expansion poses risks but they can be managed
with the Right JV Partner
5
6

• Questions?