selection of ingredients and sizes of burritos that could appeal better to a

Selection of ingredients and sizes of burritos that

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selection of ingredients and sizes of burritos that could appeal better to a wider consumer audience while being similar in costs to CMG. Their Company website shows focus on the quality of ingredients that they use. While Freebirds currently only has 100 restaurants across the U.S., the variety that they offer the consumer is hard to overlook. Freebirds is still a fledgling in the fast casual food market; however, if they were to partner with a larger company and grow the same way Qdoba and CMG has, they could further hamper the growth of it's competitors. Another up and comer in the fast casual segment is Moe's Southwest Grill. Moe's also boasts fresh ingredients such as grass-fed steak and organic tofu. It has more ingredients than CMG and also offers free chips and salsa with their meals. With 600 restaurants in the US, it only has about half as many restaurants as CMG, but Moe's offers franchise opportunities and is looking to expand internationally.
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Not only does CMG have to face competition with restaurants within the segment, but also restaurants in other segments. Recently, companies such as Taco Bell, have been expanding their menu to what you would normally see in a fast casual restaurant. Taco Bell in and of itself is a well known name in the fast food segment and can use it's existing restaurant locations and current customer base to expand quickly. Taco Bell has 6,199 locations across the US and can use convenience to their advantage over CMG. Taco Bell's focus isn't to compete with CMG at a quality level, but to give the consumer a taste that is similar for less cost. It's target market is 18- 24 year old males who are value conscious ( Hitt et al, 2015). Taco Bell's has credited the Cantina B ell menu items as the reason for the 7% same-store sales growth in 3 rd quarter of 2012 ( Hitt et al, 2015) . Taco Bell has also committed to improving the quality of their food by reducing the sodium across their menus by 15 percent and completely removing all artificial colors and flavors from their food by the end of 2015 (Food for all, n.d.). Product Costs CMG's “Food with Integrity” mission relies on providing naturally raised meats and organic ingredients to their customers. While consumer demand for Organic produce within the US has experienced double-digit growth (Organic Market Overview, n.d.), Organic foods still remain more costly purchase versus traditionally farms produce. Until the price of organic foods reduces, the cost of CMG's products will remain higher than it's competitors that don't source organic. CMG's Food and packaging costs in relations to revenue has increased from 30.69 in 2099 to 32.55 in 2011 ( Hitt et al, 2015). CMG must look at other areas of their operations to reduce products costs to maintain competitiveness.
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