- Hollis Johnson/Business Insider
- Chipotle is testing new menu items including nachos, milkshakes, and quesadillas, the last of which is a top-requested item from customers, CEO Brian Niccol said.
- Following the launch of Chipotle’s Lifestyle Bowls, the chain is looking for ways to launch more “new” menu items that use ingredients that are already available in stores, Niccol said.
- “Our No. 1-selling meat is chicken,” Niccol told Business Insider. “When you ask people ‘Did you know we had carnitas, barbacoa, or sofritas?’ a lot of people are like, what is that?”
ORLANDO, Florida – Chipotle has new menu items in the works, from milkshakes to quesadillas.
But the chain also wants to force customers to rediscover what is right in front of their eyes.
“Our No. 1-selling meat is chicken,” Chipotle CEO Brian Niccol told Business Insider in an interview at the ICR Conference on Tuesday. “When you ask people ‘Did you know we had carnitas, barbacoa, or sofritas?’ a lot of people are like, what is that?”
As customers remain baffled by menu mainstays like barbacoa, a type of shredded beef, or sofritas, the tofu-based protein that the chain introduced in 2013, Chipotle wants to cash in on “new” menu items using ingredients that have long been available at its stores.
In January, the chain introduced a line of “Lifestyle Bowls.” The Paleo Salad Bowl, the Keto Salad Bowl, the Whole30 Salad Bowl, and the Double Protein Bowl are available to order via Chipotle’s app or website and use only components already on its menu. In essence, Chipotle repackaged menu items that customers could already create.
Niccol told Business Insider he was “pleasantly surprised” by the reaction to the Lifestyle Bowls. With the launch of the line, Chipotle is eyeing other ways to reintroduce customers to what the chain already serves.
“As we get ready to move into Lent or certain seasons where vegetarian or certain nonmeat opportunities present themselves, nobody even knows we have sofritas,” Niccol said. “Frankly, even if they know we do have sofritas, a lot of them don’t even know that it is plant-based.”
Cashing in on menu expansion
- Hollis Johnson/Business Insider
Niccol, who joined Chipotle in 2018, was known for using buzzy new menu items to help turn around Taco Bell’s business during his time at the fast-food chain. However, Chipotle faces different challenges when it comes to adding new menu items.
Chipotle’s success relies partly on its speedy food-assembly line. Adding a menu item that would break the flow could be disastrous.
Meanwhile, adding items with ingredients already on the menu is a low-cost, high-reward proposition for Chipotle. The only thing the chain would need to do is add the option to its website and mobile-ordering platform.
“We believe the introduction of these bowls has low-risk but high-return potential as they cater to consumers’ [preference] for lifestyle/diet-oriented meals while utilizing existing ingredients already in the restaurant,” Peter Saleh, a BTIG analyst, said in a note about Chipotle’s Lifestyle Bowls earlier in January.
Saleh continued: “Additionally, the online only strategy limits throughput risk as digital orders are typically placed well in advance of pick up.”
Chipotle is also working to add items to the menu that actually contain new ingredients. Niccol said the top-requested item from customers is a quesadilla, which is being served at the chain’s test kitchen in New York City alongside items such as a tostada and a chocolate milkshake.
Niccol said in a presentation at the ICR Conference on Tuesday that the chain wanted to run extensive tests in a small number of locations before rolling items out nationally – a stark contrast to its rollout of queso, which was tested for just a few months in New York before hitting menus nationwide to mixed reviews.
Rolling out a new salad without romaine lettuce or with a new dressing is much easier than adding something like a quesadilla to the menu, and it would be likely to happen earlier. Niccol said the chain also planned to explore new beverage and dessert options eventually.
For now, however, these items are still in testing.
And the next big thing to hit Chipotle’s menus might already be there – customers just didn’t know about it.