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After several years of declining sales due to outbreaks of foodborne illness, Chipotle Mexican Grill (NYSE: CMG) started bouncing back at the end of 2017, about the time of its first sponsorship of the EsTic Gaming sports company with competing teams Call of Duty, Armament of war, and more. He then joined last May Team SoloMid for his Fortnite to play.
Since these early days, Chipotle shares have more than doubled in value and are trading today at around $ 700 per share. Coincidence? I do not think so!
Esports may not be solely responsible for Chipotle's turnaround, but partnerships help fulfill CEO Brian Niccol's promise to change the history of the Mexican food chain and how it communicates with consumers. Like so many other evolving chains (think: Dave & Busters), Chipotle is no longer just a restaurant both fast and casual, but a lifestyle brand beyond mere food.
Source of the image: DreamHack.
A chance of sport
Most people have probably thought that Niccol would simply improve Chipotle's menu and improve the social networking ability of the restaurant chain, as he had done for Taco Bell. And if marketing was one of the first challenges he has addressed in the chain, esports is perhaps the most visible manifestation, because the teams and their millions of followers are already very active on the platforms. social media.
Chipotle recently announced partnerships with festival and competition organizers, DreamHack and ESL, aimed not only at thousands of professional and amateur players, but also their fans and fans. New partnerships include:
- Chipotle is the official partner of CORSAIR DreamHack Masters Dallas, a great tournament of masters of arena gathering 16 teams Counter-Strike: Global Offensive for $ 250,000 in price
- Presenting partner of the DreamHack Open Atlanta tournament, where teams compete for $ 100,000 in prizes
- Become an integral part of ESL's Intel Extreme Masters (IEM) in Chicago, where $ 250,000 in prizes are at stake
- The three organizations will also launch the Chipotle Challenger series, a new amateur tournament in which teams will compete for a custom trophy, a card for a free year of Chipotle food and Chipotle gear.
- Chipotle will also host player lounges at all three events. All consumer experiences and VIP experiences on-site and online will be supported with Chipotle digital content.
Following the money
Esports is arguably one of the fastest growing social phenomena, and eMarketer estimates that the number of viewers will increase by 52.5% by 2023, reaching 46.2 million people. US advertising spending on cash flows is also expected to increase by 20% in 2020, from $ 178.1 million spent this year to $ 213.8 million next year. This is not the NFL, which regularly spends more than $ 2 billion in ads each season, but its rapid growth can not be ignored.
Chipotle is not the only restaurant chain interested in running sports sports, a number of them also leaping on sponsor teams or leagues, including Arby's. Jack in the boxand Jersey Mike's Subs. Buffalo Wild Wings also sponsors teams while integrating a MVP esports room to his new models.
Of Nike at GameStop, it is recognized that esports is the next great opportunity to market your brand to an important market. And the reason for this intense interest lies in the lucrative potential of demographics. According to Emarketer, "Sports TV viewers tend to be loyal, listeners, digital and richer than the average consumer.The trick is to know where, when and how to reach them".
In search of gain
According to Chipotle, players already tend to be fans of the restaurant, and marketing director Chris Brandt said the partnerships were allowing the Mexican food chain "to get even deeper into the sport community. This sponsorship provides the ideal platform to directly engage new and loyal Chipotle fans on-site and online, and we are excited to recognize and reward future space talent. "
ESL and DreamHack regularly host popular events and festivals. Therefore, aligning with the industry and events could be an effective marketing tool.
Nicole noted after Chipotle 's first quarter results the other day: "This is the fifth consecutive quarter of acceleration in composition, which reinforces us in the belief that, when we communicate with customers through culturally relevant marketing, focused on the good taste and real ingredients of Chipotle, access with less friction, they respond with enthusiasm. "
Esports partnerships could be one of the engines of growth after all.
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