CHIPOTLE TESTS CHIPOTLE HONEY CHICKEN IN SELECT MARKETS

Rhea-AI Summary

Chipotle Mexican Grill (NYSE: CMG) is testing Chipotle Honey Chicken in 80 restaurants across Nashville and Sacramento. This new, -time protein combines spicy chipotle peppers with sweet honey, offering a unique flavor profile. The innovation achieved the highest marks in consumer taste tests among Chipotle's chicken innovations.

Following the success of previous chicken menu items like Chicken al Pastor and Pollo Asado, Chipotle continues to focus on menu innovation. The company aims to introduce two to three new menu items annually, using a stage-gate process to gather feedback before national launches. This strategy aligns with Chipotle's goal of delivering craveability, variety, and value to its customers.

Positive

• New Chipotle Honey Chicken received highest marks in consumer taste tests
• Expanding menu offerings with innovative flavors
• Successful track record with previous chicken innovations (Chicken al Pastor, Pollo Asado)
• Chicken is Chipotle's most popular protein
• Systematic approach to menu innovation with 2-3 new items annually

Negative

• None.

Insights

Market Research Analyst

Chipotle's test launch of Chipotle Honey Chicken in select markets is a strategic move to capitalize on the growing "sweet heat" flavor trend. This aligns with consumer preferences and could potentially drive sales growth if successful. The company's stage-gate process and consumer taste tests suggest a data-driven approach to menu innovation, which is important in the competitive fast-casual dining sector.

The success of previous -time chicken offerings like Chicken al Pastor indicates a strong market demand for chicken-based innovations. If Chipotle Honey Chicken performs well, it could become a recurring menu item, potentially boosting customer frequency and average check size. However, the test market means minimal immediate impact on overall company performance.

Financial Analyst

While this product launch is intriguing, its financial impact is likely minimal in the short term due to the test market. Chipotle's strategy of introducing 2-3 menu innovations per year demonstrates a balanced approach to menu expansion, potentially driving incremental sales without overwhelming operations.

The company's focus on premium chicken offerings could positively affect margins if successful, as chicken is typically a cost-effective protein. However, investors should note that the impact on Chipotle's stock price will depend on the scalability and national rollout potential of this new item. The true test will be if Chipotle Honey Chicken can drive increased foot traffic and higher average transaction values without cannibalizing existing menu items.

• The new, limited time protein is available now in Nashville and Sacramento

NEWPORT BEACH, Calif., Aug. 27, 2024 /PRNewswire/ -- Chipotle Mexican Grill (NYSE: CMG) today announced it is testing Chipotle Honey Chicken at 80 restaurants in Nashville, Tenn. and Sacramento, Calif. The latest chicken menu innovation will spice up guests' go-to-orders with a unique heat from chipotle peppers and a touch of sweetness from pure honey that is unlike any of its proteins yet.

To develop Chipotle's new chicken menu innovation, its culinary team created a bold new take on hot honey made only with real ingredients. Chipotle Honey Chicken is marinated with seared, smoked adobo (chipotle) peppers, seasoned with savory Mexican spices, and finished with a touch of pure honey. Before introducing the limited-time chicken in test markets, the company conducted consumer taste tests as part of its stage-gate process. The spicy and sweet flavors of Chipotle Honey Chicken surpassed consumer expectations and achieved the highest marks of any chicken innovation that Chipotle has sensory tested.

"Consumers have clearly shown their enthusiasm for sweet heat flavor combinations," Chris Brandt, Chief Brand Officer. "We have had tremendous success with 'swicy' innovations and believe Chipotle Honey Chicken will capture fans with a whole new level of excitement."

Chicken Menu Innovation Sizzles at Chipotle
Over the past two years, Chipotle introduced two premium chicken menu innovations, Chicken al Pastor and Pollo Asado. With chicken serving as the company's most popular protein, these limited time menu items continue to ignite a passionate following among guests. Chicken al Pastor, for example, debuted in March 2023 and was the number one requested menu item after its first campaign, prompting a return just one year later.

Delivering Craveability, Variety and Value
Innovation remains a key priority at Chipotle, and the company creates craveable, chef-driven menu items that appeal to guests' appetite for variety and new flavor experiences. Chipotle aims to deliver two to three menu innovations per year, leveraging its stage-gate process to listen, test, and learn from guest and employee feedback and iterate before deciding on a national launch strategy.

For video assets of Chipotle Honey Chicken, please visit: https://www.youtube.com/watch?v=u-ObiSyd8ho.

About Chipotle
Chipotle Mexican Grill, Inc. (NYSE: CMG) is cultivating a better world by serving responsibly sourced, classically-cooked, real food with wholesome ingredients without artificial colors, flavors or preservatives. There are over 3,500 restaurants as of June 30, 2024, in the United States, Canada, the United Kingdom, France, Germany, and Kuwait and it is the only restaurant company of its size that owns and operates all its restaurants in North America and Europe. Chipotle is ranked on the Fortune 500 and is recognized on Fortune's Most Admired Companies 2024 list and Time Magazine's Most Influential Companies. With over 120,000 employees passionate about providing a great guest experience, Chipotle is a longtime leader and innovator in the food industry. Chipotle is committed to making its food more accessible to everyone while continuing to be a brand with a demonstrated purpose as it leads the way in digital, technology and sustainable business practices. For more information or to place an order online, visit WWW.CHIPOTLE.COM.

 

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SOURCE Chipotle Mexican Grill

FAQ

What is Chipotle's new menu item being tested in Nashville and Sacramento?

Chipotle is testing Chipotle Honey Chicken, a new -time protein, in 80 restaurants across Nashville, Tennessee and Sacramento, California.

How did Chipotle Honey Chicken perform in consumer taste tests?

Chipotle Honey Chicken achieved the highest marks of any chicken innovation that Chipotle (CMG) has sensory tested, surpassing consumer expectations.

How many new menu innovations does Chipotle (CMG) aim to introduce annually?

Chipotle aims to deliver two to three menu innovations per year, using its stage-gate process to gather feedback before deciding on national launch strategies.

What were Chipotle's previous successful chicken menu innovations?

Over the past two years, Chipotle (CMG) introduced two premium chicken menu innovations: Chicken al Pastor and Pollo Asado, both of which were well-received by customers.