Business

More Chipotle customers are ordering in-store, while the chain keeps investing in digital and drive-thru

food, more chipotle customers are ordering in-store, while the chain keeps investing in digital and drive-thru

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  • Chipotle saw a huge bump in in-store sales as digital sales dropped slightly.
  • Mobile orders made up nearly half of sales in 2021, and the chain continues to invest heavily.
  • Chipotle is returning the Boorito promotion to restaurants this year.

After years of turning toward mobile orders and delivery, Chipotle customers are returning to stores to order in-person. In-store sales were up 22% in the third quarter of 2022 over the same period in the previous year, while digital sales were down 6% to make up 37% of all sales.

The resurgence of in-store sales is a break from what had been happening at Chipotle since 2020. Digital sales grew throughout the pandemic — supercharged by the chain’s continued investment in mobile. By the middle of 2021, they made up nearly half of all orders. At the time, Insider called it a change to the business model that made Chipotle popular in the first place.

Despite tides turning a bit toward more in-store orders, Chipotle is still investing in digital infrastructure. The chain introduced a new training program for employees to improve digital order fulfillment, also announced in the earnings call.

Chipotle has been especially optimistic about digital sales through its so-called Chipotlane drive-thrus, of which there are now more than 300. Of the 43 new restaurants opened in the quarter, 30 of them had Chipotlanes, and 80% of all openings in 2022 are slated to include Chipotlanes.

The drive-thrus offer higher margins than a traditional Chipotle make-line and dining room, CFO Jack Hartung said in 2021, because they typically have higher sales and operate more efficiently than the traditional format. 

Despite all the investments in digital technology, Chipotle has hinted wanting customers to return to stores, too. After two years as a digital promotion, the Halloween Boorito promotion is returning to stores this year.

Part of the growth of in-restaurant sales can be explained by other changes happening in customers’ lives. Some workers are returning to offices and visiting Chipotle with their coworkers, rather than making larger digital orders for their families while working from home, Hartung said.

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