Throughout 2016-2017, Chipotle Mexican Grill (NASDAQ:$CMG) has suffered both in its reputation and fiscal situation related to its food-born illnesses scandals. Now, Chipotle is leaving no stone uncovered to reinvigorate investment confidence through new strategic initiatives.
New Management Model
First and foremost, Chipotle’s board of directors got rid of the co-CEO model and appointed Steve Ells the sole CEO in order to address challenges in a more direct, streamlined method. Ells specifically hopes to focus on simplifying restaurant operations to improve service and promote healthier food, while enhancing guest experience. The board of directors also welcomed 4 new members.
Rebrand
Secondly, Chipotle hopes to recover sales by changing its strategies from giveaways, discounts and rewards to new menu items, simplification of restaurant operations, upgrade of guest experience, and faster output. It will achieve these goals with the help of aggressive brand marketing.
The emphasis on menu development comes from the company’s strong belief in solidifying a loyal customer base while attracting new patrons. In fact, Chipotle has already expanded its testing of new items, offering to more than 350 restaurants due to its early success.
Even further, since earlier this March, Chipotle had fulfilled its pledge of refraining from using colors, flavors, or preservatives of any kind in any of its ingredients. Naturally, following the scandal that led to its fall, Chipotle will continue to prioritize food handling, testing, and food preparation as the most important company value.
Price Boost
The company is predicted to implement a menu price rise in the fourth quarter that should boost comps. Additionally, Chipotle will pay for an increased focus on catering and delivery services that will augment the top line.
Chipotle is undeniably on the road to recovery. However, the company still has a long ways to go, with its shares having sunk 32.3% in the last 3 months, compared to the market trend fall of 6.3%.
Featured Image: twitter
