Chipotle Mexican Grill
Called the "Low Roller Menu," Chipotle's new offerings include soup, salad, and tacos. A single taco sells for $2.25, more than you'll pay at Yum! Brands'
So far, Chipotle is only testing its "Low Roller" offerings here in its home city of Denver. The messaging is striking, and similar to what you'll find in former parent McDonald's
Other proposed changes include a kid's menu and featured items. Think of the latter as a customer-friendly way to standardize offerings a la McDonald's, Burger King
The lower price points and a clearer menu should allow Chipotle to boost traffic, something the burrito baron failed to do during an otherwise strong first quarter. Here, "strong" refers to same-store sales growth. Chipotle's comps improved 2.2%, thanks in part to price increases on certain items. Mixing in "Low Roller" options should add diversity without distorting its reputation as a premium quick-serve brand.
We've seen this strategy work with high-end retailers and consumer goods manufacturers. Apple
And it may be exactly the spicy topping this burrito baron needs.
Order up! Bite into a delicious variety of related Foolishness:
- How do you score big in the stock market? Buy quality brands like Chipotle when they go on sale.
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- No more lukewarm quarters, Chipotle. Please.