Chipotle CEO plans broader menu, longer hours
Brian Niccol says burrito chain needs to make more of its strengths
Chipotle Mexican Grill Inc.’s new chief executive is borrowing from the playbook he used running Taco Bell to help revive the struggling burrito chain.
Brian Niccol told investors Wednesday that he plans to make changes to Chipotle’s menu, to market those foods more cleverly and to boost digital sales by installing pickup shelves in restaurants where customers can collect mobile orders.
“We will make the brand more culturally relevant,” he explained.
Mr. Niccol promised, however, to not completely upend the simple menu and business plan that company founder Steve Ells adhered to before stepping down in March.
Chipotle is planning to introduce more snack foods and a “happy hour” promotion between 2 p.m. and 5 p.m., with $2 tacos and the beer and margaritas it sells at most of its restaurants.
There will be a similar offer for late-night customers. The chain is testing quesadillas, nachos and avocado tostadas.
Chipotle, which has struggled for more than two years to win back customers after a series of food safety scares, also plans to offer a new loyalty program, roll out a new tag line and engage with consumers more on social media.
The CEO says he is bringing more discipline and focus to the company by closing up to 65 underperforming stores, testing new menu items more rigorously and removing layers of management.
Investors have set high hopes for Mr. Niccol, sending Chipotle shares up nearly 80 per cent since his appointment. On Wednesday, shares fell nearly 3 per cent in after-hours trading.
Already, Mr. Niccol has shaken up Chipotle’s insular culture, hiring a new marketing chief and head of human relations. He said he is also hiring new field managers and restaurant employees from outside the company. In another culture shift, he is moving Chipotle’s corporate headquarters from Denver to Newport Beach, Calif., not far from his old Taco Bell office.
A project dubbed “the big fix” is designed to improve basic operations, such as repainting restaurants and fixing broken lights. The chain also plans to test a broader restaurant redesign.
Mr. Niccol said he isn’t planning to add a breakfast menu at the moment. Instead, he is opening Chipotles earlier and closing them later. He said many customers crave burritos outside the chain’s standard hours of 10:30 a.m. to 10 p.m.
“We will lean in to the strengths we have,” he said.