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Chipotle Mexican Grill does not stray from its roots of "food with integrity," but it's going to have a new slogan this fall. After all, the brand says that it wants to become "a goal-oriented lifestyle brand," said Chris Brandt, CEO, at a call late after. Wednesday afternoon.
No word yet on what this slogan is, but it's "a perfect fit for the brand," Brandt said.
CEO Brian Niccol, Brandt and other Chipotle executives discussed a series of ideas during a conference call of about 90 minutes. Among them: a new loyalty program in 2019, fixed-term offers, new foods and digital updates, including the ability to place delivery orders via its mobile application.
Chipotle will also close 55 to 65 underperforming restaurants (including five Pizzeria Locale outside Denver).
Niccol predicts that Chipotle will become a brand with annual sales of $ 10 billion sometime in the future, an ambitious goal given that last year's total revenue was less than $ 4.5 billion.
That said, Niccol did not hesitate to discuss the past of the company, with a lack of focus and a series of health alerts.
"There was a lack of discipline around priorities, processes and accountability and we were not focused enough on results, which made us responsive and hindered," said the former CEO. from Taco Bell about Chipotle.
Niccol ticked off a variety of questions that he found at Chipotle including "a general lack of customer understanding" and said, as it was mentioned before, "the mark had been silent and lost some of its cultural relevance. "
Chipotle is also cutting two layers in its ranks and, as it says in May, is closing its Denver headquarters, moving people to its new headquarters in Newport Beach, California, and to an existing office in Columbus, Ohio .
In total, the review will incur costs of $ 115 to $ 135 million, of which $ 50 to 60 million should be affected in the second quarter, announced Wednesday the company.
Of course, all these changes come about three years after Chipotle saw its reputation, sales, and stock price after the E.Coli outbreaks and other problems. Since then, he has revised his food preparation techniques and brought new leadership.
A category of one
Niccol and Brandt both said that Chipotle is working on "basic research" that will help inform its marketing and other plans.
"Our marketing budgets have been allocated inefficiently and we are working quickly to correct this," said Niccol.
Some commercials that have started to turn on which Brandt has worked, but it is clear that there are more changes coming.
CMO Chipotle Chris Brandt Credit: Chipotle
"There is such an emotional element unique to this brand that comes from its authenticity and transparency on the food we need to strengthen and revive," Brandt said.
"Our ultimate marketing mission is to make Chipotle not only a food brand, but also a goal-oriented lifestyle brand," Brandt said.
"What do I mean by that?" Brandt asked, rhetorically. "Chipotle will become a brand that people want to know, want to be part of and want to wear a badge. I sincerely believe that Chipotle can transcend the food category, separate from everyone and be a category of one because There is no compromise with Chipotle, no one has so tasty food that you like to eat like us.
He started pushing for a more engaging approach to social media, including Instagram posts that generate a lot of insights and answers.
?
Chipotle works with its agency partners on innovative creativity about its food and the ingredients it uses, said Brandt, not to mention the agencies by name. In early 2017, while Mark Crumpacker was still the director of marketing and business development, Chipotle hired Venables Bell & Partners for the creative sector and MullenLowe Mediahub for its media sector.
As for potential changes to the menu, he tests a few different things in New York. It definitely seems anxious to increase visits for snacking, with test products including frozen Mexican nachos and chocolate milkshakes. Two other products in test mode right now are quesadillas (currently on the kids menu but not in a larger size) and tostadas to the lawyer.
The company watches Happy Hour, offering $ 2 tacos with a drink between 2pm. and 17 hours He is also exploring a similar offer to increase sales late at night, after 20 hours, said Niccol.
Chipotle has also heard from customers who want to bring back items like chorizo. Niccol also thinks that the company can do a better job by celebrating items already in restaurants, pointing out that many people do not know the sofritas, the organic tofu that it has had for a few years.
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