Chipotle team with Venmo as it takes its rewards program nationally
Chipotle Mexican Grill expands its loyalty program nationwide because the digital platform continues to see great growth.
The company began testing Chipotle Rewards, a point-based loyalty program, across multiple markets this fall in a move to make the brand more accessible and digitally innovative
CEO Brian Niccol told CNBC that a rewards program has been the most sought-after initiative among its consumer base, with digital upgrades in recent quarters growing 66 percent in the fourth quarter of 201[ads1]8, nearly 13 percent of sales – Niccol said loyalty is another way to get users engaged online, and he expects it to have a "multiplier effect" on the company's digital business.
"In our test markets, we have seen people become more engaged and engaged in our digital system with the loyalty program. said Niccol. "We see that people participate even more with delivery, mobile ordering and ordering in the app."
Users can register via Chipotle's website or app and receive 10 points for every dollar spent, earn take a free entree with 1,250 points. First-time users will also receive free chips and guacamole and can incur rewards online, in stores or on the app.
The company also announced that it would collaborate with the launch pocket digital wallet company Venmo, and deposited $ 1 to $ 500 surprise amounts into the tab accounts through March 15. Chipotle becomes the first restaurant to have its own branded emoji – Chipotle pepper – at Venmo, used for splitting and sharing payments. Those who want a chance to receive a reward can enter the phone number associated with his or her Venmo account at ChipotleRewardMe.com, and about 25,000 people will be paid during the partnership.
"We think it's great for Chipotle to show up in unexpected places, but at truly relevant places for people and how to communicate with each other," said Niccol about the partnership with Venmo.
The company has made digital innovation a priority Under Niccols service, which began last March, it has installed other lines in the stores to handle orders coming in via app or web and retrieving shelves in digital order stores, as well as testing "Chipotlanes", "drive-through windows" dedicated to retrieving digital orders Wall Street has responded well to the changes – the stock in 2018 had its best year since 2013 and is up over 40 percent this year.
Chief Digital and Information Officer Curt Garner said it is important to develop experience which is digital through and through having an app alone is not enough.
"Chipotle has a significant advantage in that we have built dedicated kitchens to serve digital orders, and I have integrated these kitchens both with our app and with delivery channels, so that the orders come in a way that is seamless. They do not interfere with the flow of the line in the restaurant and we can promise that these orders will be delivered to customers or will be available for pickup in some of the fastest times in the industry, Garner says.
Analysts say a smart digital presence felt across platforms, including apps and social media. Marks that get it right, see social media as part of a larger technology infrastructure ranging from display to store.
"Where growth is happening right now in the restaurant room is primarily on the digital side," said Peter Saleh, CEO and restaurant analyst at BTIG. "If you're good at all these things – digital, delivery, take out, social – you usually take part in the room and grow faster than the rest."
