Bangalore Burrito (Coming to a New Delhi Near You)

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TJ Lowden Kathy Wang Onkar Kapoor Bryan Jolly Bangalore Burrito (Coming to a New Delhi Near You) STRT 571 – Final Project

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Bangalore Burrito (Coming to a New Delhi Near You). STRT 571 – Final Project. TJ Lowden Kathy Wang Onkar Kapoor Bryan Jolly. Chipotle: Moving to India. Company Overview 22,000 Employees $1.3B Revenue / $140M Profits 25% Average YoY Revenue Growth over last 5 Years - PowerPoint PPT Presentation

Transcript of Bangalore Burrito (Coming to a New Delhi Near You)

Page 1: Bangalore Burrito (Coming to a New Delhi Near You)

TJ LowdenKathy Wang

Onkar KapoorBryan Jolly

Bangalore Burrito(Coming to a New Delhi Near

You)STRT 571 – Final Project

Page 2: Bangalore Burrito (Coming to a New Delhi Near You)

Chipotle: Moving to IndiaCompany Overview

22,000 Employees$1.3B Revenue / $140M Profits25% Average YoY Revenue Growth over last 5

YearsFirst International Expansion: April 2010 in London

Analysis of Expansion into India

Decision: Go (with the Right Partner)

Strategy RisksProfitability

$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

Page 3: Bangalore Burrito (Coming to a New Delhi Near You)

Strategic Fit

ID Key Resource

Improvement Strategy

1 Marketable Cuisine Adapt menu to address demographic

3 Brand Improve brand awareness in India with similar US promotions

8Business Acumen

Improve via strong JV partner for expansion into right markets and conduct business operations

USA India

Consistent Key Strengths: 2) Financial Stability; 5) Available Capital; 7)Restaurant Efficiency

Page 4: Bangalore Burrito (Coming to a New Delhi Near You)

Revenue 1,331,968,000 Stores 837 Revenue per Store 1,591,360

ExpensesFood, Beverage, & Packaging Costs 431,947,000 Labor Costs 351,005,000 Occupancy Costs 98,071,000 Total Expenses 881,023,000 Stores 837 Expenses per Store 1,052,596

Contribution Margin per Store 538,763

Contribution Margin in US Stores 33.86%

Expected Contribution Margin in India 40.00%

FDI Assessment

Recent Recession reduced FDI in India

Increasingly Open Capital

Flows

Managed Floating

XR

RBI Controlled Monetary

Policy

Page 5: Bangalore Burrito (Coming to a New Delhi Near You)

5Expansion poses risks but they can be managed with the

“Right” JV Partner

Risk type Mitigation PlanImplications

Risk Analysis and Mitigation

Page 6: Bangalore Burrito (Coming to a New Delhi Near You)

Questions?