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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
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Bangalore Burrito(Coming to a New Delhi Near You) STRT 571 – Final Project TJ Lowden Kathy Wang OnkarKapoor 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 • First International Expansion: April 2010 in London • Analysis of Expansion into India Strategy Profitability Risks • “Few Things Well” • Use 49/51 Joint Venture • Two Locations • New Delhi • Bangalore • $10M Initial FDI • 40% Contribution Margin • 8-Year Breakeven Point • 12.5% Return on Investment • JV for Social and Legal Risk Mitigation • Controlled Political and Technological Risks • Volatile Rupee: 39 to 51 Decision: Go (with the Right Partner)
Strategic Fit India USA Consistent Key Strengths: 2) Financial Stability; 5) Available Capital; 7)Restaurant Efficiency
FDI Assessment Recent Recession reduced FDI in India Increasingly Open Capital Flows Managed Floating XR RBI Controlled Monetary Policy
Risk Analysis and Mitigation Risk type Implications Mitigation Plan Expansion poses risks but they can be managed with the “Right” JV Partner 5