Chipotle had a pretty busy last couple of days. Unsurprisingly, all revolving viruses. Surprisingly? It’s not only the corona one.
The next two quotes were both said about the company since early this week:
Quote #1:
“This settlement (a $25M fine, DS) represents an acknowledgment of how seriously Chipotle takes food safety every day and is an opportunity to definitively turn the page on past events.”
Quote #2:
(speaking about a staggering 80% jump in digital sales) “[It’s due to] how we moved swiftly by driving further investments […] we are driving new diners in a higher frequency […] it’s another sign that our digital platform is gaining traction.”
So, what is happening here? How can these two statements be about the same company, and from the same day?
Viruses! And one heck of a timing.
Both statements were made by Brian Niccol, Chipotle’s CEO since early 2018 – who is having quite a week.
On the one hand – the company had agreed to pay a record $25 Million fine to resolve criminal charges involving food-safety violations – dating from 2015 to 2018 – when a NORO-Virus got hundreds of the chain’s customers sick.
The norovirus is a “highly contagious pathogen that can be easily transmitted by infected food workers handling ready-to-eat foods and their ingredients,” wrote CNN.
The virus was said to get approximately 1,100 people sick across the United States. And, this fine is the largest ever imposed in a food-safety case.
Amid coronavirus, food staff are most likely taking high regards to safety precautions, wearing both gloves and masks while preparing dishes. So, this settlement did come in a peculiar timing.
And what about the more upbeat, optimistic, and positive quote? So, this one came in the wake of the quick-service restaurant chain’s most recent sales figures – and has a lot to do with coronavirus.
As mentioned above, the company reported an 80% jump in digital sales, accounting for 26% of sales for the first quarter of 2020.
This is most likely a result of how quickly the company expanded its digital and delivery services to accommodate shifting needs by its customers, amid the COVID-19 crisis. The growth can also be attributed to the company’s growing loyalty program – designed to help people eat fresh food at home, without having to make it themselves. “I think there is fatigue in cooking,” said Niccol. We can surely relate to that.
Regarding the company’s loyalty program – Chipotle also stated that over the past month, daily signups to the restaurant’s rewards program increased almost four times. Moreover, they plan on generating more personalized offers to “better engage and incent behaviors.” Way to take excellent CRM measures!
If that’s not enough, during the quarter, Chipotle also partnered with Uber Eats, to drive even more sales. Again, other company’s can take notes here.