TSCG's Strategic Teamwork Elevates Asset Value
TSCG's Strategic Teamwork Elevates Asset Value
The Evolving Nature of a Chain's Competitive Positioning and Value Proposition
When TSCG started working with Chipotle in the Carolinas in 2009, the brand was outnumbered and out-positioned in the fast-casual Mexican food category, resulting in underperforming stores. Our Charlotte-based team, consisting of Andy Misiaveg, Jonathan Britt, and Jack Brennan, developed a site-selection strategy for Chipotle with the support of our advanced analytics team in Atlanta. This work included a deep dive into their competitors, city road and shopping patterns, as well as demographics, psychographics, and market analytics.
Challenge
A Crowded Field in the Fast Casual Mexican Food Category
The primary challenge was to find the best locations in each area, despite brands like Baja Fresh and Tijuana Flats occupying decent real estate. At the same time, Chipotle had several leadership changes and an evolving location requirement including the addition of drive-through requirements.
Strategic Actions
Results
In for the long haul pays dividends.
TSCG helped Chipotle add 83 new locations, double their average unit volumes, and eliminate competitors such as Baja Fresh and Tijuana Flats, who closed all their stores in the Carolinas.
In Conclusion
Today, TSCG continues to have a strong relationship with Chipotle, helping the company to grow to over 200 markets in the two states, far exceeding the vision when we started working together. In addition to the Carolinas, TSCG now supports Chipotle in Georgia, Tampa, South Florida, and Memphis.