#2

We wish Chipotle would eliminate restaurants and go pick-up/delivery only in 2020

Monday, December 30, 2019 by Snacks
"_You're telling me I don't need to wait tables anymore?"_

"You're telling me I don't need to wait tables anymore?"

You'll never have to hear 'Guac is extra' again... Chipotle should become the 1st major US restaurant chain to eliminate tables and make every store offer pre-order pickup/delivery only. We could stuff a burrito and rip the tinfoil with reasons why:

  • Digital saved Chipotle: Its online sales for pickup and delivery nearly doubled last quarter.
  • Space costs $$$: Physical Chipotle restaurants are mostly empty during the mornings and 2pm-5pm when you're not barbacoa-hangry.
  • New guy: The new CEO came from Taco Bell with a taste for fresh ideas (carne asada was all him). We're betting things can get wilder.

Convenience is taking over retail... In department stores, Target's stock is at a record high largely thanks to curbside pickup. Walmart is committed to "delivery unlimited" subscriptions at 1,400 locations (and grocery curbisde pickup, too). Now we're noticing retail convenience spill onto food:

  • Over half of your 2020 restaurant spending is projected to be outside the restaurant (aka delivery/pickup).
  • Last year's $10.2B consumer splurge on 3rd party delivery apps led to ghost kitchens: delivery-only restaurants — customers can't even see the place.
  • Starbucks is testing its 1st ever pickup-only store.
THE TAKEAWAY

Eliminating tables will be Chipotle’s differentiator... It's facing fresh fast-casual competition from Sweetgreen, Cava, and Shake Shack. Plus, fast food is upgrading (McD's is dropping $6B to renovate its stores). Going table-free isn't just a profit move or PR stunt — it's how Chipotle can stand out in a saturated world of quick quality food options.

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