Dive Brief:
- Chipotle achieved its fastest order fulfillment speed in four years, resulting in better experiences for customers and higher customer satisfaction scores, CEO Brian Niccol said on a Q1 2024 earnings call Wednesday.
- The restaurant chain can drive better customer experiences by creating better employee experiences, according to Niccol. Through improved training and scheduling, Chipotle boosted employee satisfaction and, ultimately, order fulfillment speed.
- Chipotle is also exploring ways to retain customers on a large scale by targeting them with personalized offers through its loyalty app. It has already segmented loyalty members who visit infrequently and could be more engaged with through AI.
Dive Insight:
Chipotle embraced the physical restaurant experience as its top customer experience driver, with tech investments playing a supporting role. This approach sets it apart from rivals like McDonald’s and Wendy’s, which are primarily focusing on loyalty data and digital experiences.
Technology still plays a part — Chipotle co-developed automated avocado scoopers and improved digital ordering with pickup reminders in late 2023 — but Niccol emphasized in-store throughput, or the frequency at which orders are fulfilled, as its essential CX ingredient.
“It's one of those things that cascades into everything being a lot better,” he said on the earnings call.
However, Chipotle still has work to do. Speed improved over the past six months, but throughput peaked in 2014, according to Niccol. The company plans to improve order fulfillment for years to come.
Though empowering frontline workers and boosting efficiency are more immediate throughput priorities, Chipotle is also exploring tech upgrades. The company expects to pilot its automated avocado scooper at a store in the latter half of 2024.
“We're [exploring] using robotics and AI and finding other ways to improve productivity, but you're not going to see that coming down the pipe,” Niccol said.
