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Chipotle has been trying to add dessert to its menu for years. Here’s why it’s taking so long

Chipotle, a supplier of burritos, tacos, guacs, chips and a variety of other dishes, wants to add an elusive item to its menu: dessert. The company has been trying to find a sweet choice for years. In 2017, try buñuelos, a crunchy, cinnamon dessert with chocolate sauce. The following year, Chipotle introduced a Mexican chocolate shake to its tasting kitchen in New York. The chain has also looked at churros as an option. “But so far nothing has stuck.” first quarter results of the chain. New menu items are an important tool for restaurant chains, which use them to attract customers to stores and help create a buzz around their brands. Chipotle typically launches two to three new menu items each year. “We are constantly exploring new menu innovations and dessert is an area where we see opportunities,” said Chris Brandt, the company’s Chief Marketing Officer, in an email statement. “items have been tested in this category in recent years, however, we’re not ready to go any further in the formal stage portal process,” he said, referring to Chipotle ‘s official testing process. way to increase the average check size, as customers getting a ticket for lunch or dinner may decide to add a side like queso or guacamole, but it has not always been easy for Chipotle to make these items correctly. brand released queso in 2017, cheesy dip received bad reviews, with customers complaining that the texture was “a processed “and the taste” like crayons “. The company changed the recipe immediately after the initial release and released another version in 2020. Lately, the chain has had better luck with new items. Last month Chipotle released the pollo asado nationwide for a limited time. The choice of grilled chicken marked the first innovation of the chain’s chicken recipe in its history. “The response was great,” Nicole said during the call. He added that Chipotle’s second quarter has started well thanks to pollo asado, which is “the most popular new protein to date”. The company’s reward program, which has nearly 28 million members, can help the chain understand how the Products menu resonates with customers, Chipotle CTO Curt Garner told CNN Business: “We have a challenge right now in the program. “Our reward, where we give people extra reward points for … testing all of our proteins,” he said. “Then we lean in and understand – did their behaviors change after trying the different proteins?” This image helps to inform the company’s thinking about the type of menu items that could do well with customers, he said. In addition, the application helps to raise awareness of new items as well as existing ones that may attract some customers. Higher prices, better staff Even without dessert or other new additives, Chipotle sales are rising. In the quarter ended March 31, restaurant sales that were open for at least 13 months rose 9% and total revenue rose 16% to $ 2 billion. Chipotle shares fell about 5% before the market opened on Wednesday. Chipotle raised prices by about 4% at the end of the first quarter, after raising them significantly last year. So far, customers are not too worried. “We have seen … very little resistance to pricing,” Niccol said. Higher prices help the company meet rising costs, such as more expensive avocados, tortillas and dairy products. They also help offset higher wages. Last year, the company announced that it was raising the salaries of its restaurant employees by an average of $ 15 per hour. In addition to raising salaries, Chipotle is emphasizing to employees that they will have the opportunity to move up the company ladder. The tactics paid off. “Chipotle’s staff levels are better today than they were in 2019,” Niccol said. The company is also testing automation for its kitchens to speed up service and allow employees to spend more time on higher priority tasks.

Chipotle, a supplier of burritos, tacos, guacs, potatoes and a variety of other dishes, wants to add an elusive item to its menu: dessert.

The company has been trying for years to find a sweet choice. In 2017, try buñuelos, a crunchy, cinnamon dessert with chocolate sauce. The following year, Chipotle introduced a Mexican chocolate shake to its tasting kitchen in New York. The chain has also looked at churros as an option. But so far nothing has stuck.

“We continue to work hard trying to figure out a sweet treat” or other “additives” such as queso or guacamole, CEO Brian Niccol said during a call to analysts Wednesday discussing the chain’s first quarter results.

New menu items are an important tool for restaurant chains, which use them to attract customers to stores and help create buzz around their brands. Chipotle typically launches two to three new menu items each year.

“We are constantly exploring new menu innovations and dessert is an area where we see opportunities,” said Chris Brandt, the company’s Chief Marketing Officer, in an email.

“Some items have been tested in this category in recent years, however, we are not ready to promote anything yet in the formal stage portal process,” he added, referring to Chipotle’s official testing process.

Correct download of new menu items

In particular, additives are a great way to increase the average check size, as customers who get a lunch or dinner may decide to add a side like queso or guacamole.

But it has not always been easy for Chipotle to do the right thing. When the brand released queso in 2017, the cheesy dip received poor reviews, with customers complaining that the texture was “raw” and the taste “like crayons”. The company changed the recipe immediately after the initial release and released another version in 2020.

Lately, the chain has had better luck with new items.

Last month Chipotle released the pollo asado nationwide for a limited time. The choice of grilled chicken marked the first innovation of the chain’s chicken recipe in its history. “The response was great,” Nicole said during the call. He added that the second quarter of Chipotle has started well thanks to pollo asado, which is “the most popular new protein to date”.

The company’s reward program, which has nearly 28 million members, can help the chain understand how menu items resonate with customers, Chipotle CTO Curt Garner told CNN Business.

“We have a challenge going on right now in our rewards program, where we give people extra reward points for … testing all of our proteins,” he said. “Then we lean in and understand – did their behaviors change after trying the different proteins?” This image helps to inform the company’s thinking about the type of menu items that could do well with customers, he said.

In addition, the application helps to raise awareness of new items as well as existing ones that may attract some customers.

Higher prices, better staff

Even without dessert or other new additives, Chipotle sales are growing. In the quarter ended March 31, restaurant sales that were open for at least 13 months rose 9% and total revenue rose 16% to $ 2 billion. Chipotle shares fell about 5% before the market opened on Wednesday.

Chipotle raised prices by about 4% at the end of the first quarter, after raising them significantly last year. So far, customers are not too worried. “We saw … very little resistance to pricing,” Niccol said.

Higher prices help the company meet rising costs, such as more expensive avocados, tortillas and dairy products. They also help offset higher wages. Last year, the company announced that it was raising the salaries of its restaurant employees by an average of $ 15 per hour. In addition to raising salaries, Chipotle is emphasizing to employees that they will have the opportunity to move up the company ladder.

The tactics paid off. “Chipotle’s staff levels are better today than they were in 2019,” Niccol said. The company is also testing automation for its kitchens to speed up service and allow employees to spend more time on higher priority tasks.

Chipotle has been trying to add dessert to its menu for years. Here’s why it’s taking so long Source link Chipotle has been trying to add dessert to its menu for years. Here’s why it’s taking so long

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