Dive Brief:
- Chipotle Mexican Grill is leaning into an improved loyalty program, technology that can streamline basic tasks and strong store leadership to enhance the overall customer experience, CEO Brian Niccol said on a Q4 2023 earnings call Tuesday.
- Recent updates to Chipotle’s loyalty app include messages to inform customers about the readiness of their orders and reminders to scan for points at checkout to reduce friction, according to Niccol.
- Chipotle has made investments in automation and will test machines that can handle tasks like preparing avocados so associates can spend more time helping customers.
Dive Insight:
Fulfilling orders quickly and correctly is essential to creating a great fast casual experience, according to Niccol. Many of Chipotle’s recent investments are aimed at improving order throughput.
Niccol credited Chipotle’s general managers as important stakeholders for this strategy. The fast casual chain started collecting and sharing performance data with managers so they can better coach associates on how to efficiently fulfill orders.
Chipotle is aiming to further drive efficiency through a partnership with robotics company Vebu to develop the Autocado, a machine for coring and scooping avocado. It is also working with Hyphen to create machines that can automate the creation of bowls and salads.
Chipotle will test both pieces of technology in a restaurant this year, the company said.
The third aspect of Chipotle’s CX strategy is improving its loyalty program. The company is exploring ways to boost personalization, including using loyalty data to offer more relevant promotions, according to Niccol.
“I believe we are on a multiyear path to commercializing our customer data and insights into more targeted marketing campaigns and improving the overall digital experience that will drive increased frequency and spend over time,” he said.
