Chipotle launches smoked brisket after two years of development

Chipotle has had significant success with its new product launches lately, a testament to the company’s rigid “step-to-door” testing process.

Just this year, for example, Chipotle launched Cilantro-Lime Cauliflower Rice and Handcrafted Quesadilla, its first new customizable entry in 17 years.

The latest product to come out of its step-gate process is the Smoked Brisket, available starting today for Rewards members in the US and Canada for a limited time. It will be available in stores from September 23 and by delivery from September 27. The product includes hand ground beef, smoked and grilled with Mexican spices and finished with a new brisket sauce made from smoked red peppers.

“This is not your standard breast experience,” Marketing director Chris Brandt said in a statement. “We have created a differentiated smoked bacon recipe that is authentic to our menu and that pairs perfectly with our real ingredients.”

According to the company, beef brisket is one of the most requested dishes by customers and this particular offering has been in development for two years.

In his last earnings call in July, CEO Brian Niccol said the Smoked Brisket had been “validated” through the Gateway process and the timing of the launch would be market based.

Of course, the chain has to face the price of beef, which challenged the entire industry. In the last quarter, for example, CFO Jack Hartung predicted that rising commodity costs, along with staff shortages, would offset the implemented 3.5% to 4% menu price increase. by the chain to cover higher wages.

But beef is also a higher margin commodity, which could ease resistance to price increases, analysts at Wedbush say. These analysts also point to Chipotle’s previous success in introducing another new protein – Carne Asada in 2020 – which lifted middle control of the chain.

The chain is targeting $ 3 million in average unit volumes, up from over $ 2.5 million today, and brisket could be the tipping point it needs to get there.

To celebrate the launch, Chipotle is waiving shipping charges on all smoked brisket orders through its native channels – the Chipotle app, Chipotle.com, and Chipotle.ca – from September 27 through October 3. This, along with early access to the product for its 24 million loyal members, should also provide a major digital boost to the company which is already experiencing a tailwind here. Earlier this month, Chipotle announced that its digital sales had passed the $ 2 billion mark, for example, a definitely advantageous position given that digital customers tend to spend and visit more.