Food Business News - July 10, 2018 - 29
he has identified opportunities to transform Chipotle's
"There is a lack of
discipline around priorities,
process and accountability,
and we were not sufficiently
results focused, which made
us reactive and hampered
execution," Mr. Niccol said.
"I found skills gaps in many
areas and insufficient data
Brian Niccol, Chipotle Mexican Grill
for decision making that
have held us back from
reaching our potential. There is no validated menu innovation
pipeline, a general lack of customer understanding and no real
process for scaling and commercializing innovation."
One initiative designed to improve the customer experience is the installation of new digital pickup shelves in select
restaurants for customers who order and pay using a mobile
app. At a location in Denver, the addition of a digital pickup
window near the register led to a double-digit increase in digital sales, Mr. Niccol said.
"Not only did it provide a significantly faster and more
convenient mobile order and pickup experience, but it served
'You'll begin to see more
tests in the second half of
this year, and you can expect
relevant menu news in the
- Brian Niccol,
Chipotle Mexican Grill
CHIPOTLE MEXICAN GRILL
as in-store marketing that raised awareness among our customers standing in line," Mr. Niccol said.
Soon, customers may receive targeted value offers and
incentives through a rewards program, Mr. Niccol said.
"Combine that with then providing some value that
matches up with a daypart like the happy hour, which matches
more of like a snacking occasion, I think, then we have to provide the right value equation for a snacking occasion between
the hours of 3 to 5 p.m.," he said. "So those are our lead-in ideas.
And then, obviously, the key piece of the puzzle is always understanding our price equation as well."
Along with the changes, Chipotle is relocating its headquarters to Southern California from Denver in the fourth
quarter of the current fiscal year.
"We're going to be building more marketing, more digital,
more menu, data analytics, varying areas of expertise, and we
think we have the ability to really transform the organization in
a faster fashion by relocating the company," Mr. Niccol said. "And
there's lots of talent on the West coast and across the entire country that, frankly, wants to be a part of the Chipotle journey." FBN
July 10, 2018
Food Business News