2. THE COMPANY
Est. 1993
Originator of “fast-casual” dining
No franchises
“Food with Integrity” ie. Non-
GMO, antibiotic-free, pasture-
raised meat, and local produce.

3. THE ISSUE:
GOT SICK

4. THE BIGGER PICTURE:

5. WHY?
Chipotle’s entire BRAND STRATEGY is broken and tired.
It needs updates and innovation to re-engage and re-build
trust with its target market.

6. BRAND STRATEGY
VISION
TARGET AUDIENCE
BRAND PROMISE
REASONS TO BELIEVE
BRAND PERSONALITY
& KEY INSIGHTS

7. VALUE PROPOSITION
 Fast-Casual Dining
• Distinctive interior design
• Music
• Fine dining features

8.  Business Model
 Strong identity of the brand
 First Mover Advantage
 Unique Supply chain
 Food is fresh quality
 Employees Salary
 No franchises
 Supply chain
 High overhead costs
 Limited menu
 Broken brand promise
 More Choices on the menu
 Build on their social media
presence
 Transparency
 Expansion
 Online Delivery
 No Franchises
 Supply chain
 Criticism
 Competition – Market capture
S W
O T

9. WHAT’S BEEN DONE?
External professional restaurant cleaners
$50M marketing budget
Transparency & honesty in media
Staff food safety training day (all restaurants
closed)
Free burrito coupons
Social media campaign
Transparency in supply chain
Website updates

10. WHAT’S MISSING?
We need to:
Increase sales growth
Continue rebuilding trust
Re-engage Millennials
Maintain competitive advantage in Fast-Casual industry

11. MARKET RESEARCH
When was the last time you
ate at Chipotle?
Did Chipotle’s recent food safety issues
change your desire to eat there or
feeling about the brand?
Answered: 146 Skipped: 14 Answered: 157 Skipped: 3

12. Hey Millennials,
How much do you care about where fast food
restaurants source their ingredients?
 70% want to be informed about cooking & food handling
processes
“Untrustworthy”
“Disappointed”
“Unhealthy”
“Love” “Yummmmmy!!!!!!”
“Delicious!”
“Friends”“Fresh”
“Guacamole”
 94% really care about where the ingredients came from
 6% say ingredients don’t affect their choice

13. MILLENNIALS LIKE COMMUNITY

14. LOYALTY PROGRAM
Technology
(app/website/
e-statements)
Rewards
identification
Process
Ongoing customer
justification
Liability of rewards
currency

15. MILLENNIALS NEED TO BE CONNECTED

16. RESTAURANT UPDATES
Wi-fi
Cordless phone chargers
iPads in line-up to watch the Trace Your Food video

17. MILLENNIALS ARE HEALTH-CONSCIOUS
But they’re also really into novelty desserts.

18. PALETAS MEXICANAS
Handcrafted
Partnerships available to test the
product
Dessert option
Good margin
Kids & Milliennials attention
Healthy & trendy

19. MILLENIALS CARE

20. FOLLOW YOUR FOOD VIDEO
Distribution:
• YouTube
• In-Store

21. MILLENNIALS LOVE GUACAMOLE
And the only thing they love
more is talking about how it
always costs extra.

23. GUACAMOLE ISN’T EXTRA HAPPY HOUR
Tues. 4-7pm, Guac isn’t extra.
Beer & margaritas are $3.50 each

24. #ItsNotExtra
DISTRIBUTION:
 Social Media: #ItsNotExtra #GuacMoney
 EX: @ChipotleTweets: #ItsNotExtra Happy Hour starts
Wednesday! What will u do w ur extra #GuacMoney?
 TV/YouTube Ads
 Quick videos of different people doing
crazy things with the money they’ve
saved from not paying extra for
guacamole #GuacMoney

25. BUDGET BREAKDOWN
$50M in 2Q2016
Advertisements,
34%
Facilities
update, 9%
Loyalty
Program, 35%
Guac Free,
20%
Paletas, 2%

26. LOYALTY PROGRAM
Costs: $17M
Benefits:
 Increase in revenue by 11%
(industry average)
 Important source of data

27. RESTAURANT UPDATES
Costs:
$4.5M (sunk costs)
Benefits:
 Customer engagement & retention
 Customer awareness of “Food with
Integrity”

28. PALETAS MEXICANAS
Costs:
$ 1 M Partnership
$ 1.6 M Developing a new product
Benefits:
Payback in 2 months
Easy implementation

29. FOLLOW YOUR FOOD - VIDEO
Costs:
YouTube video production: $1M
Benefits:
 40% growth in positive
brand perception

30. #ItsNotExtra
Benefits:
Increased number of
customers
Increased profits from beer
& margarita sales
Cost:
$9.75M

32. APPENDIX – LOYALTY PROGRAM BUDGET FORMULA
BUDGET TO START LOYALTY PROGRAM
COMPONENTS VALUES
Total Sales (Gross Sales) ($) $4,453,000,000.00
Capture Rate (%) 30%
Percentage Reward (%) 1.5%
Redemption Efficiency (%) 90%
Margin on Reward (%) 30%
Soft Benefits ($) $2,000,000.00
Admin & Software ($) $3,000,000.00
Loyalty Program (%) 0.40%
Total Cost $17,624,255.00

33. APPENDIX – ASSUMPTIONS RESTAURANT UPDATES

34. APPENDIX – ASSUMPTIONS PALETA MEXICANA

35. APPENDIX – ASSUMPTIONS IT’S NOT EXTRA