Chipotle Mexican Grill Inc. grew its already substantial domestic same-store sales by just under $870 million, or 27.3 percent, to $4.06 billion, as it added a net 169 units to its system, for a total of 1,755 locations as of the end of the Latest Year. That made it the 14th largest chain in the country in terms of domestic sales, rising from the 17th spot the Preceding Year.
Chipotle accomplished its success with consistent messaging of its “Food With Integrity” slogan of clean-labeled food from animals raised humanely.
Although Chipotle rarely changes its menu, the Denver-based LSR/Mexican chain added Sofritas, an organic-tofu-based protein option that it rolled out over the course of the year.
Chipotle also undertook a variety of marketing initiatives, including a four-part online comedy series on Hulu called "Farmed and Dangerous" that made fun of mainstream animal husbandry, and the signing of a three-year sponsorship deal with Major League Soccer. The deal includes sponsorship of 12 of the league’s teams and of the Chipotle MLS Homegrown Game, a youth all-star exhibition.
Chipotle raised its prices in the third quarter by low single digits, but continued to report traffic increases in the low double digits.
Keys to growth
Consistent messaging. Chipotle’s “Food with Integrity” slogan resonates with its target Millennial audience, which it reaches through unconventional marketing such as Web series and sponsorship of music festivals. Its new sponsorship of Major League Soccer reinforces its positioning of supporting healthful lifestyles.
Customizability. Chipotle’s menu, although limited, provides gluten-free, low-carb, high-protein and vegan options. The fact that the food is assembled to order gives guests the opportunity to tweak their meals as they’re prepared.
Employee development. Chipotle gives its salaried staff not just paid sick leave and vacation, but also tuition reimbursement and other benefits, which it recently said it would extend to hourly employees as well. The company has a culture of cultivating talent and promoting from within.
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