If imitation is the highest form of flattery, Taco Bell should be feeling pretty good.
That's because Chipotle Mexican Grill Inc. -- its biggest competitor in the U.S. Mexican-inspired dining segment -- is taking pages directly from its playbook as it tries to revamp its image. And no wonder: It was Chipotle's new CEO who wrote the script during his years leading the fast-food rival.
From digital expansion to a loyalty program, Chief Executive Officer Brian Niccol is implementing many of the same strategies he did at Taco Bell, and he's hoping for similar success -- but without giving up the healthier halo that Chipotle's built for itself.
"What fits into people's lifestyle is Chipotle's great-tasting, clean ingredients," Niccol said in a telephone interview. "You're going to see us lean more into that."
After struggling to bring back diners following multiple illness outbreaks, Chipotle has recently started to see better results under Niccol, who took the helm in March. The chain is investing in employees and store remodels, working on faster service times and spending to improve its advertising, executives said during a call Wednesday for shareholders and analysts.
"There was a general lack of customer understanding," Niccol said during the call. "Our marketing dollars had been inefficiently allocated."
So Chipotle is tweaking almost everything. There's a new marketing tagline coming later this year with new advertising coming in 2019, Niccol said. The company began running national television commercials this spring to help bump sales in the short term. Last week, Chipotle said it would start testing new foods in New York City including chocolate milkshakes, avocado tostadas and nachos. Niccol also recently partnered with DoorDash to offer delivery service.
"We're going to be much more digitally focused, we're going to be much more consumer focused," Niccol said in the interview.
SundayMonday Business on 07/01/2018