Dive Brief:
- Chipotle has opened its 500th Chipotlane in Louisville, Kentucky, the company said Wednesday.
- The company also partnered with ASAP.com to deliver from over 600 restaurants in the East Coast, South and Midwest in addition to Chipotle’s existing delivery partners.
- At least 80% of the 235 to 250 restaurants Chipotle is opening this year will have a Chipotlane, CEO Brian Niccol said during the company’s October earnings call.
Dive Insight:
Since opening its first Chipotlane in 2018, the chain has shifted its development focus to include these digital pickup lanes. Stores with Chipotlanes continue to outperform traditional restaurants by sales, margins and returns, the company said in its third quarter earnings release. During the third quarter, the company opened 43 new restaurants, including 38 Chipotlanes. For 2023, the company said it expects to open between 255 to 285 restaurants with at least 80% including a Chipotlane.
Digital sales have also been growing despite a return to dine-in traffic. During the third quarter, digital made up 37.2% of total food and beverage revenue, roughly $819 million, even though dine-in sales grew 22%. Niccol said in July that the company is on track to reach $3.5 billion in digital sales this year.
Delivery will be a small portion of that revenue, however, accounting for less than 1% of food and beverage revenue, or about $18 million, during the third quarter. Chipotle’s partnership with ASAP could help reach new customers and increase digital access. The delivery company has been adding new markets this year, including New York City.
Other companies have begun adding digital pickup lanes, including Sweetgreen, which opened its first store with a pickup lane this week, and Chick-fil-A, which is testing an express drive-thru lane in 60 units.
